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The MULN stock price surged by over 30% on Monday after Mullen Automotive secured exclusive distribution rights for the I-GO EV in Europe. The stock rose to a high of $0.50, marking a 140% increase from its lowest point this year, pushing the company’s market cap to over $191 million.
Mullen Automotive is a relatively small player in the electric vehicle (EV) industry, focusing on growth through acquisitions. The company’s portfolio includes brands like Bollinger Motors, Mullen Five, Dragonfly, and Mullen I-GO. Additionally, Mullen is investing in solid-state battery technology, which it claims will offer a 150-kilowatt-hour battery capable of delivering over 600 miles on a full charge—a significant range compared to most EVs.
The stock’s jump on Monday was driven by the news that Mullen had secured exclusive rights for the sales, distribution, and branding of the I-GO in European markets. The I-GO has a range of 124 miles and will be priced at $11,999 plus VAT. It will be distributed through some of Europe’s top channels.
The question now is whether the MULN share price will continue to rise. On Monday, the stock’s rally occurred in a high-volume environment, with over 486 million shares traded—well above the average of 98.4 million.
However, it’s uncertain if the stock will maintain this momentum in the short term. There are still questions about Mullen’s ability to be competitive in the European market. Additionally, investors are cautious about the company’s strategy of growth through acquisitions, as historically, companies that expand primarily by acquisition often underperform in the long run. Salesforce, which has acquired companies like Slack and Tableau, is a notable example of this.
On the 30-minute chart, the MULN share price went parabolic on Monday and continued to rise in extended hours, gaining nearly 10%. The stock moved above a key resistance level at $0.4590, formed several gaps upward, and surpassed all moving averages. However, trading volume has started to decline.
Given these factors, there’s a possibility that the stock may experience a bearish breakout in the near term. If that occurs, the next key level to watch would be $0.40. Conversely, a move above $0.5394 would invalidate this bearish outlook.