Mullen stock trades up to $0.1270 at Thursday open – Crypto News – Crypto News
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Mullen stock trades up to $0.1270 at Thursday open – Crypto News

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  • Mullen Automotive stock lost 19.5% on Wednesday.
  • MULN stock has lost ground in each of the past ten weeks.
  • CEO David Michery has signaled that the dilution will stop for the next six months.
  • Mullen now has $135 million on its balance sheet for production operations.

Mullen Automotive (MULN) The stock gained more than 9% at the open on Thursday after shedding 35% in this week’s first three sessions. The stock traded from Wednesday’s close at $0.1101 to a session high on Thursday of $0.1270 before selling off lower for a gain near 9%.

Mullen stock unsurprisingly lost 19.5% on Wednesday as the development-phase electric vehicle (EV) company – based in Brea, California – continues to see the sale of its shares explode until the current end date of June 30, 2023. MULN stock has lost 96% in the last three months.

Mullen stock has advanced 1.6% in Thursday’s premarket to $0.1119 per share, while NASDAQ 100 futures had gained 0.37%.

Mullen Automotive stock news: MULN may enter consolidation in H2 2023

Last week on June 21, Mullen management announced that there would be a moratorium on further investor financing in the second half of 2023. The current round of investor options would need to be exercised by June 30. Before the cutoff date, existing holders of options need to exercise them as soon as possible.

That is why this week has seen an incredible 35% drop in just three sessions. That’s just par for the course in this dismal second quarter for shareholders. Over the past ten weeks, Mullen stock has lost ground every single time, and seven of the ten have seen losses exceeding 20%.

The good news, if it turns out that way, is that Mullen has enough capital to finally end its furious rampage of investor dilution. The company now reports $135 million on its balance sheet, which should help it meet production goals on its Mullen Three Cab Chassis Truck at its factory in Mississippi.

Mullen’s assets bear no debt besides a small $7.3 million outstanding liability that it says it has no problem paying back. Based on its current cash position, Mullen has a cash-per-share value of $0.38, about 3.5 times higher than its current share price.

“We are in the best financial position in our company’s history and remain fully committed and highly focused on producing, selling and delivering our vehicles to our customers prior to the end of 2023,” CEO David Michery said last week.

On June 26, Mullen filed with the Securities & Exchange Commission (SEC) to register an additional 2.34 billion in common stock shares, although this number corresponds to a filing from back in February. Despite its minuscule current market cap of $26 million, Michery continues to highlight the company’s acquisitions in excess of $253 million spent last year for the assets and intellectual property of Electric Last Mile Solutions and Bollinger Motors.

Michery sold more than 2 million worth of shares back on June 16.

EV stock FAQs

Electric vehicles or EVs are automobiles that use rechargeable batteries and electric motors to accelerate rather than internal combustion engines (ICEs). They’ve been around for more than that 100 years, but battery technology research and development was meager for much of the 20th century. Lithium-ion battery technology became advanced enough to produce EVs at scale in the late 1990s and 2000s, and sales have been steadily increasing since then Tesla’s Roadster was unveiled in 2008. EVs are viewed as a means of reducing carbon emissions since battery electric vehicles ( BEVs) themselves produce zero emissions. Other vehicles called plug-in hybrid electric vehicles (PHEVs) utilize both battery electric power and ICEs as a backup.

EVs are growing from a small base, but they rose from 9% of global new auto sales in 2021 to 14% of the total in 2022. This was a 65% YoY growth rate, and the industry delivered 10.2 million EVs worldwide in 2022. Projections show this number climbing above 16 million in 2023. Across the world, market shares differ greatly among nations. Nearly 88% of Norwegian new car sales in 2022 were EVs. On the other hand, the United States, where much of the modern innovation in EVs was forged, had less than 8% of new vehicle sales go to EVs in 2022. The largest EV market in the world, China, saw 30% of the market will go to EVs that year.

We know you’re thinking Elon Musk, but he’s probably more like the father of the mass-market, contemporary EV. All the way back in 1827, a Hungarian priest named Anyos Jedlik invented the electric motor and used it the following year to power a vehicle of sorts. French scientist Gaston Planté invented the lead-acid battery in 1859, and German engineer Andreas Flocken built the first true electric car for the public in 1888. EVs made up about 38% of all vehicles sold in the US around 1900. They began losing market. The share increased rapidly after 1910 when gasoline-powered vehicles grew much more affordable. They largely died off until new research programs in the 1990s led to gradual private sector investment in the 2000s.

China’s BYD is by far the largest manufacturer of EVs in the world. In 2022 it sold 1.8 million EVs and in the second half of the year made up 20% of the global market. The asterisk given to BYD is that the vast majority of these vehicles are hybrids. Tesla’s 12% market share is often treated as more significant than BYD, because it only sells BEVs and is the most famous EV brand in the world. Volkswagen, BMW and Wuling then round out the top five. As a new sector with heavy investment though, many startups have flooded the market. These include China’s Nio, Li Auto and Xpeng; a Swedish-Chinese manufacturer called Polestar; and Lucid and Rivian from the US.

Mullen stock forecast

The steady, long-term sell-off in Mullen stock is so replete that chart indicators that usually forecasts the future has ceased to offer any qualified outlook. Take, for example, the Moving Average Convergence Divergence (MACD) indicator. It crossed over in a bullish fashion on March 30 earlier this year. This would usually indicate a good time to buy. Since then, however, MULN stock has lost 96% of its value in just three months.

The 9-day moving average has remained below the 21-day moving average since February 21 – an extremely long time without a single short-term uptrend crossover. Possibly, now that the dilution should halt in the second half, MULN stock may consolidate for the next six months.

MULN daily chart

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