There’s a lot going on with electric vehicle manufacturer Mullen Automotive (NASDAQ:MULN) lately. I’ll admit, it’s not all good news. Yet, there are enough positive developments to make MULN stock a worthy buy-and-hold, as long as you keep your position size small.
As you may have already heard, Mullen Automotive effected a 1-for-9 reverse stock split in order to avoid delisting from the Nasdaq exchange. Also, Mullen started producing its Class 3 electric truck model, known as the Mullen THREE.
Those are significant developments, but we’re only getting started. So, buckle up as we’re about to delve into the pros and cons of owning MULN stock in 2023.
Reasons to Get Excited About MULN Stock
Even the skeptics and critics can’t deny that Mullen Automotive keeps its shareholders in the loop with frequent updates. Sure, it’s risky to invest in Mullen Automotive, but it’s never boring.
For instance, Mullen Automotive recently kicked off its long-anticipated 2023 Strikingly Different tour. This tour, which allows prospective buyers to test-drive Mullen’s EVs, will cover multiple U.S. coasts and run until Nov. 15.
This tour will highlight the new Mullen FIVE RS EV Sport Crossover. It’s a true powerhouse of an EV with a top speed of over 200 miles per hour and can go from zero to 60 miles per hour in under two seconds.
Hungry for more positive updates? Here’s another one for you. Mullen Automotive officially started its $25 million stock buyback program with the repurchase of 3.7 million shares. Mullen Automotive CEO David Michery joined in the buying spree when he purchased 102,040 shares of MULN stock.
Mullen Automotive’s First Quarterly Revenue
On top of all that, there’s another piece of good news that Mullen Automotive is happy to convey. Specifically, the automaker recorded its first revenue in the fiscal third quarter ended June 30, 2023.
That’s a major milestone, and hopefully Mullen Automotive will grow its sales during the coming quarters. In case you’re wondering how much revenue Mullen generated, the company reported $308,000 in sales for the quarter under consideration.
Don’t get the wrong idea here. I’m certainly not implying that Mullen Automotive’s are perfect. I’ll admit, Mullen reported a widening net earnings loss. So, going forward, Mullen Automotive should announce a cost-reduction plan and a road map to profitability.
Still, Mullen Automotive took a big step forward with its first reported quarterly revenue. I expect the company to generate more sales in the near future from the Mullen-GO urban commercial delivery vehicle.
Prepare for Huge Moves With MULN Stock
After absorbing the pros and cons of investing in Mullen Automotive, risk-tolerant financial traders may be ready to buy some shares. Just don’t over-leverage yourself, as the stock is prone to huge moves in both directions.
That said, I am bullish about MULN stock and expect it to easily surpass $1. The road to profitability may be long and challenging for Mullen Automotive, but there will always be excitement and plenty of updates along the way.
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.