Mullen Automotive, the electric vehicle (EV) manufacturer, witnessed a dip in its stock on Friday following the commencement of production for its Environmental Protection Agency (EPA)-approved Mullen One, a Class 1 electric van. Despite this setback, the company’s stock managed to hover above its moving average for multiple sessions amid a fluctuating market.
At the time of this publication, Mullen Automotive Inc stock (MULN) has witnessed a decline.
Mullen Automotive Inc
Current Price: $0.19
Change : -0.03
Change (%): (-13.26%)
Volume: 45.1M
Source: Tomorrow Events Market Data
The pivotal Environmental Protection Agency’s Certificate of Conformity has granted Mullen Automotive the authority to ship the Mullen One to customers and distributors. In a significant move, Randy Marion Automotive has inked a substantial contract worth $200 million for 6,000 units in 2022. The deal includes plans to deliver 300 vehicles by the end of this year, with an additional 6,000 units scheduled for 2024.
The Mullen One, boasting a manufacturer’s suggested retail price (MSRP) starting at $34,500, has secured a more extensive initial wholesale contract compared to its counterpart, the Mullen Three. Notably, the Mullen Three, in production since August, has a $63 million purchase order for 1,000 units from Randy Marion Automotive.
An added incentive for potential buyers is the Mullen One’s eligibility for a $7,500 federal US tax credit, effectively bringing down the total price to $27,000, as reported by investing.com. However, the company finds itself in a blackout period until its 10-K filing with the Securities and Exchange Commission (SEC) on December 29. Shareholders will convene on December 15 for a crucial meeting to vote on a third reverse stock split plan, a strategic move aimed at preserving its listing on NASDAQ.
In a strategic partnership, Mullen holds a substantial 60% stake in Bollinger Motors and has ambitious plans to introduce the Mullen Five EV crossover by late 2024 or early 2025. Already accepting reservations, the Mullen Five has generated interest and support from traders, with the foundation laid in October providing a stabilizing factor.
As Mullen Automotive navigates through this dynamic period, the production and market performance of the Mullen One, coupled with the strategic contracts and future plans for the Mullen Five, continue to be key focal points for investors and industry observers alike. The upcoming shareholder meeting and subsequent SEC filing are anticipated to provide further insights into the company’s trajectory in the burgeoning electric vehicle market.
