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Last Friday, Mullen Automotive’s stock fell by 3.82%, reversing the previous day’s 19% surge. Despite this dip, the company ended the week with an impressive 52% increase in value.
Mullen Automotive is an emerging electric vehicle (EV) manufacturer based in Southern California. Recently, the company secured a purchase order for 6,000 Class 1 EV cargo vans from Randy Marion Isuzu, a division of the Randy Marion Automotive Group (RMA). This order, valued at approximately $200 million, is expected to begin in the first quarter of 2023.
RMA is a well-established commercial vehicle dealer group in the U.S., and this partnership marks Mullen Automotive’s first commercial dealer collaboration. In addition to providing sales, service, and parts for Mullen’s commercial vehicle lineup, RMA’s commitment to purchasing the 6,000 cargo vans underscores their confidence in Mullen’s products and future growth prospects.
Mullen’s commercial EV offerings include Class 1-3 cargo vans and cab chassis, as well as Bollinger Motors’ Class 4-6 chassis products. These vehicles will be manufactured at the Advanced Manufacturing and Engineering Center (AMEC) in Mississippi.
Mullen’s first EV, the Mullen FIVE crossover, is slated for delivery in 2025. The vehicle features an award-winning design and patented PERSONA technology, which uses facial recognition to personalize the driving experience for each user.
In September 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive. Then, in December 2022, Mullen acquired all assets of Electric Last Mile Solutions (ELMS), including intellectual property and a 650,000-square-foot plant in Mishawaka, Indiana. These acquisitions indicate Mullen’s active expansion in the EV market.
Overall, the recent purchase order and partnerships highlight the strong demand for Mullen Automotive’s products and suggest a positive outlook for the company’s future growth. The company’s focus on innovation, as seen with the development of the Mullen FIVE and the acquisition of ELMS, also positions it well for long-term competitiveness in the EV industry.
Based on this analysis, it’s likely that Mullen Automotive will continue to experience strong demand and growth. In the coming trading sessions, the company’s stock could potentially rise above the $0.50 level. Last week’s performance may be a preview of what to expect in the next few weeks or even months. However, if the stock falls below the $0.18 support level, it would invalidate my bullish outlook.