- Mullen announced the decision to acquire battery equipment and IP from Romeo Power.
- MULN stock gained more than 5% on Monday.
- CEO David Michery is in the middle of an appeal to remain listed on the NASDAQ exchange.
- MULN stock could be delisted as soon as September 15.
Mullen Automotive (MULN) stock jumped more than 16% at the open on Tuesday to above $0.51. MULN has finally begun to develop an uptrend following the news of a $3.5 million purchase of battery manufacturing equipment from Romeo Power, which was announced on Monday.
A statement from the company says the deal gives Mullen “equipment, inventory, and intellectual property for high-volume EV (electric vehicle) battery pack and module production.”
Mullen stock news: Romeo Power deal could lead to better production momentum
The agreement gives Mullen access to equipment that will help it increase battery pack assembly lines, as well as increase its battery research & development capabilities.
“Purchasing the Romeo assets is consistent with our battery pack production path and previous announcements for our high voltage facility in Monrovia. Overall, this purchase further enhances our capabilities for battery pack production right here in California and the US,” said David Michery, founder, chairman and CEO of Mullen.
The EV company will integrate the new equipment with its ongoing facility in Monrovia, California. The company already builds battery packs and modules in Monrovia but says the new equipment will allow it to become less reliant on third-party supply chains.
The company has recently been reeling from NASDAQ’s announcement that it has chosen to delist MULN common stock from its exchange due to the well-telegraphed criterion that listed companies need to keep their share price above $1.00.
Mullen leadership knew since May of this year that it needed to maintain the $1.00 threshold for the 10 sessions leading up to the September 5 cutoff date last week. Instead, the share price dropped precipitously from the $1.00 price level down to below $0.50 during that time period.
Mullen has appealed for an extension from the NASDAQ committee that governs delistings, which could give it as much as 180 days to comply with the listing criteria. However, if the appeal fails, then MULN stock might end up trading on the pink sheets on or after September 15.
Mullen Automotive FAQs
What is Mullen Automotive?
Mullen Automotive is a publicly-traded development-stage electric vehicle company based in Brea, California that typically uses outside partnerships to manufacture its vehicles. The company was founded in 2014 and currently sells self-designed electric delivery vehicles. Besides its commercial offerings, Mullen plans to begin manufacturing its Mullen FIVE EV crossover in late 2024 or early 2025. Mullen Automotive went public on the NASDAQ exchange through a reverse merger in late 2021.
Who is the team behind Mullen Automotive?
David Michery has been the company’s CEO since he founded and incorporated the company in 2014. The existing company came from the merging of CODA Automotive and Mullen Motor Cars through acquisition. Michery is joined by Chief Financial Officer Jonathan New, Chief Commercial Officer John Schwegman and President of the Automotive Division Calin Popa.
What vehicles does Mullen Automotive currently offer?
Through a partnership with Randy Marion Automotive Group, Mullen distributes its Mullen One delivery van that has an electric range of 110 miles. Through an agreement with a Chinese manufacturer and distributor based in Ireland, the company also distributes the Mullen-GO Commercial Urban Delivery EV in Europe. In July 2023, Mullen will begin commercial production at its facility in Mississippi of its Class 3 EV Cab Chassis long-haul truck for immediate delivery. Through its 60% ownership stake in Bollinger Motors, Mullen will also reap the benefits of that company’s B1 SUV and B2 pickup truck, as well as other commercial vehicles in the future. The Mullen FIVE crossover vehicle is not slated for production until at least late 2024, but it is already taking reservations.
Why does MULN stock trade for such a low share price?
Mullen has been diluting its stock since going public in late 2021. This is because the company as of yet currently has little revenue from operations and no profits. The stock has fallen over 99% since the company’s reverse merger in November 2021, and the rapid dilution is mostly to blame. Taking into account Mullen’s 1-for-25 reverse stock split on May 4, 2023, Mullen had 33,338,727 shares outstanding on September 30, 2022, but 126,281,274 shares on March 31, 2023. The company is allowed to sell up to 200 million shares under current authorization.
Mullen stock forecast
MULN stock added 5.8% on Monday and is advancing 2.3% in Tuesday’s premarket. This is a rather good sign as the NASDAQ 100 futures are down 0.3%, so this has nothing to do with the overall market sentiment.
Mullen stock could be in the early innings of a resurrection in share price. Thus far, it has managed to remain above the August 23 low at $0.39. The 9-day Simple Moving Average and the 21-day SMA need to be conquered at $0.48 and $0.65, respectively. From there, an overthrow of the $0.90 support level from June will bring bulls back into the trade.
MULN daily chart
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