It’s been something of a roller coaster for Mullen Automotive (MULN) this year – notably with more downs than ups. But could that be about to change?
Asset manager Blackrock recently increased its stake in Mullen – indicating that the company, which until now has been focused on potential, could be on the verge of producing the corresponding figures.
To recap what happened in a busy year for Mullen, in November 2021 the stock price was around $12.19. By the end of February 2022, it had fallen to $0.61. It then rallied to $3.31 in late March, only to steadily decline from there.
Over the past month, the stock has shown signs of recovery – up just over 9%, but at $0.27, still a mile from its high for the year.
There have been some good noises coming from Mullen lately.
Earlier this month, Capital.com reported on the founder and Mullen Automotive President David Michery insisted that his Mullen B1 and B2 EV models were ideally suited to the battlefield and would therefore have great appeal for “global military” customers.
Michery said the goal is to get the U.S. government to see the potential of the B1 vehicle and then see what Mullen can do to make it “military friendly.”
Analysts have begun to warm to Mullen on the grounds that vehicle production numbers may soon start to appear – a criticism that has so far been consistently leveled at Mullen.
It would appear that the recent acquisition of ELMS by Mullenincluding its plant in Mishawaka, Indiana, could provide the necessary production boost.
Michery says the former ELMS plant will offer the capacity to produce up to 50,000 vehicles per year. Significantly, the deal will also speed up the launch of the Bollinger B1 SUV and Bollinger B2 pickup truck by over a year – according to the company.
In September, Mullen acquired a 60% majority stake in Bollinger Motors for $148.2 million in cash and stock.
Another positive for Mullen was his deal earlier this month with Newgate Motor Group of Ireland for the i-Go. The i-Go is an EU-specific last-mile delivery vehicle to which Mullen Automotive acquired the rights in October.
The agreement gives Newgate Motor Group the rights to market, sell, distribute and service the Mullen i-Go in Ireland.
Marketbeat points out that while the risk for investors is that vehicle production is still around a year away – once production begins, this stock could easily go to the bottom. high digit dollarge.
Whether brokers’ positive sentiment towards Mullen has encouraged Blackrock to increase its position in Mullen is debatable, but the EV sector in general is beginning to generate interest and the concept that the risk is worth it. hardly could gain ground.
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Yesterday, Capital.com reported that Polestar Automotive Holding (PSNY) had seen its share price soar following rave reviews for its new Polestar 2 BST model.
The Nasdaq-listed stock has risen 31.15% over the past week – and is currently valued at around $5.83.
The Swedish manufacturer of electric vehicles resulting from a joint venture between Volvo (VOLVA) and Geely (GEELY), went public last June by merging with a special purpose acquisition company (SPAC).
According to Marketbeat, the broker consensus rating for the stock is a “hold” with a target price of $10.
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