Mullen (MULN) Stock Looks Ready to Shift Out of Neutral

Daily Trade

Will investors of California-headquartered electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN) finally catch a break in 2023? The company hasn’t achieved profitability yet but has made progress in other respects. Besides, there’s an event happening this week that could drive interest in MULN stock.

To put it mildly, it’s been a bumpy ride for Mullen’s long-term shareholders. Mullen Automotive manufactures futuristic-looking vehicles, which would be fine if the economy were running on all cylinders.

However, it’s tough to get investors enthused about Mullen Automotive during a time of elevated inflation and recession fears. Still, there’s an in-progress automotive-industry event that should bring some positive attention to Mullen Automotive. So, financial traders will probably regret it later if they give up on the company now.

Don’t Ignore Mullen Automotive’s Notable Achievements

I’ll just come right out with the bad news. During the first quarter of fiscal 2023, Mullen Automotive incurred a net earnings loss of $376.9 million. This was more than double the net loss of the year-earlier quarter. This might be a deal-breaker for some prospective investors.

If you’re still open to investing in MULN stock, though, then there are a number of noteworthy achievements to consider. At the end of 2022, Mullen Automotive had over $100 million in cash, and a purchase order from Randy Marion Automotive Group valued at around $200 million.

Furthermore, Mullen successfully completed the first leg of its “Strikingly Different” U.S. test-drive tour. Also, Mullen Automotive made its initial delivery of the company’s Mullen-GO (sometimes also known as the I-GO) compact EV to a distribution agent. Along with all of that, Mullen acquired a controlling interest in Bollinger Motors and finalized its purchase of the assets of ELMS (Electric Last Mile Solutions).

Automotive Event Should Be Bullish for MULN Stock

So, while not financially perfect in every way, Mullen Automotive is potentially setting itself up for robust revenue opportunities. There’s also a possible catalyst that’s currently in motion as Work Truck Week 2023 is currently under way.

As InvestorPlace Assistant News Writer Eddie Pan reported not long ago, Work Truck Week 2023 is scheduled to take place this year from March 7 to March 10. Among the featured exhibitors at the event is Bollinger Motors (which, again, is majority-controlled by Mullen Automotive).

According to the schedule, Bollinger Motors plans to showcase its “Unstoppable Class 4-6 Electric Chassis cabs.” Pan noted that Bollinger Motors’ B4 Chassis Cab could “make a dent in the commercial trucking industry” with its “payload of 7,080 lbs and a range of 185 miles.”

Whether that “dent” is actually made remains to be seen. What’s important here is that Bollinger Motors, and therefore Mullen Automotive, has an opportunity to attract positive attention, and that’s exactly what MULN stock investors need now.

Investors Shouldn’t Give Up on Mullen Automotive

It’s undeniable that Mullen Automotive isn’t perfect from a financial standpoint. Nevertheless, the company has a list of achievements that prospective investors shouldn’t ignore.

Moreover, Bollinger Motors could make waves in the automotive market with its B4 Chassis Cab. All in all, MULN stock has its share of risks to consider, but it’s too early to give up on this promising EV-industry disruptor.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Articles You May Like

S&P 500, Nasdaq-100 are getting an update. Trillions depend on who’s in and who’s out
Why Short Squeeze Stocks May Be 2025’s Hidden Gems
SoftBank CEO and Trump announce $100 billion investment in U.S. by firm
Here’s why FedEx plans to spin off its freight business
Are These AI Stocks Ready for a Comeback?