Shares of Mullen Automotive (NASDAQ:MULN) have been in the spotlight this week, plunging to a new 52-week low of just $0.13.[0] The electric vehicle (EV) company is facing several economic headwinds, including a complaint filed against them by Drawbridge Investments and DBI Lease Buyback Servicing, and their failure to meet Nasdaq listing requirements. With shares down over 70% from their highest point in February, investors are beginning to question whether or not they should be buying MULN stock.
Mullen Automotive is a Southern California-based automotive company building the next generation of electric vehicles (“EVs”).[1] Last month, the company received a $200 million purchase order from Randy Marion Isuzu, LLC for 6,000 Class 1 EV cargo vans.[2] Mullen has since announced that deliveries of these cargo vans will begin before the end of March.
Mullen has also announced that they expect to receive $110 million in firm commitments by June 1, 2023, which would give the company enough cash to operate the business over the next 12 months.[2] However, this news has not been enough to buoy MULN stock, as it continues to trade at its 52-week low.[3]
CEO David Michery has remained optimistic, stating that the company “has all the pieces in place between our product, factories and strategic expertise to execute on our plans to deliver our Class 1 and Class 3 vehicles this year.”[1] He also noted that the Mullen FIVE program is “approaching vehicle engineering freeze, allowing us to move into the next phase of the crossover program.”[2]
Despite these positive developments, investors should be careful when considering buying MULN stock. The company is still at risk of de-listing from the Nasdaq, and the stock is trading under 15 cents per share.[4] Additionally, Mullen has a history of missing deadlines, making it hard to take their announcements seriously.[4] Therefore, I advise against purchasing Mullen Automotive stock, even though it may be a good deal.[5]
0. “Mullen Automotive stock touches 52-week low (NASDAQ:MULN)” Seeking Alpha, 15 Mar. 2023, https://seekingalpha.com/news/3947738-mullen-automotive-stock-touches-52-week-low
1. “Mullen releases statement claiming to be on track for deliveries; Shares remain near 52-week low By Investing.com” Investing.com UK, 16 Mar. 2023, https://uk.investing.com/news/stock-market-news/mullen-releases-statement-claiming-to-be-on-track-for-deliveries-shares-remain-near-52week-low-432SI-2953847
2. “MULN Stock Alert: Mullen Says It’s on Track for Randy Marion Deliveries” InvestorPlace, 16 Mar. 2023, https://investorplace.com/2023/03/muln-stock-alert-mullen-says-its-on-track-for-randy-marion-deliveries/
3. “MULN Stock Alert: Mullen Responds to Drawbridge Court Summons” InvestorPlace, 14 Mar. 2023, https://investorplace.com/2023/03/muln-stock-alert-mullen-responds-to-drawbridge-court-summons/
4. “MULN Stock Price Predictions: Can Mullen Really Hit $23.46 in 2024?” InvestorPlace, 17 Mar. 2023, https://investorplace.com/2023/03/muln-stock-price-predictions-can-mullen-really-hit-23-46-in-2024/
5. “MULN stock price could crash to zero as bankruptcy risks rise” Invezz, 15 Mar. 2023, https://invezz.com/news/2023/03/15/muln-stock-price-could-crash-to-zero-as-bankruptcy-risks-rise