An emerging electric car manufacturer, Mullen Automotive Inc. (NASDAQ: MULN) was formed from the combination of CODA Automotive and Mullen Motor Cars in 2014. CODA had an impressive history and was one of only two EV companies selling cars in the US for a time. The acquisition of CODA put Mullen right where it needed to be and MULN has since created an end-to-end ecosystem targeting all aspects of EV ownership while becoming a provider of electric vehicle options built in the United States. Although EV stocks have received considerable enthusiasm from investors recently, the stock has gained the limelight thanks to an update regarding its new next-generation polymer battery technology. The resulting 250% increase over four days, high volume, and low float of 22 million made MULN stock a potential short squeeze candidate, but the stock’s long-term potential is difficult to overlook.
MULN Stock News
Despite the company’s strong fundamentals, MULN has been downtrending since November. Therefore its announcement regarding its next-generation polymer battery technology caught many by surprise. While its work is somewhat theoretical, its testing has shown very promising results. If the battery is as effective as these initial studies suggest, then MULN could be well ahead of its competition.
Setting out with the goal of producing EV batteries capable of surpassing existing lithium-Ion technology, MULN is focused on increasing efficiency, energy density, and range using its batteries. Currently showing potential for a 150 kilowatt battery that could deliver a range of over 600 miles, MULN’s batteries could overtake the technology used by major EV manufacturers such as Lucid whose Dream edition offers a range of 520 miles only. The tests also highlighted its DC fast charge which offers a range of over 300 miles after only 18 minutes of charging.
Clearly this is bullish news for MULN and its CEO – David Michery – does not disagree. According to him “the test data collected shows an impressive outcome and future for solid-state batteries” since the “results surpassed all expectations”. He went on to say that “this technology, once implemented on the Mullen FIVE, will deliver over 600 miles of range on a full charge.”
If this is the case, then Mullen Automotive has a bright future indeed. Solid-state batteries are expected to be integral to the expansion of electric vehicles because they can deliver faster charging times and better range than lithium-ion batteries. Major companies like Volkswagen, Ford Motor, and Toyota have invested in solid-state battery startups to get a jump on this developing technology and if Mullen beats them to the punch then MULN could become a rising star in the EV space.
The company is already accepting reservations on its pure electric SUV crossover model – the Mullen FIVE – as well as its high-performance electric sports car – the Mullen DragonFLY. According to the results of its EV market study comparing the FIVE with the Tesla Model Y and Ford Mustang Mach-E, Mullen could be positioned to start capitalizing on this market.
The company reported encouraging results across a variety of test variables and overall showed that that Mullen was performing at a highly competitive level relative to both industry leaders, Ford and Tesla. As the head of the consulting firm leading the test study shared, “I’d say the Mullen FIVE did very well indeed, from besting both rivals to soundly beating one in particular when it comes to design and style”.
As an SUV, the FIVE has shown great potential after beating Lincoln and Rivian for the ZEVAS Award in the top SUV category. While the SUV debuted last November, the high performance versions of MULN’s FIVE are set to arrive in later in the summer. Anticipating great demand for its models, MULN has entered a strategic alliance with Comau – a leading Italian systems integrator and solutions provider – to collaborate in the build-out of a vehicle body shop at Mullen’s Advanced Manufacturing and Engineering Center (AMEC) in Tunica, Mississippi where the FIVE will be produced.
Mullen has successfully filed over 120 patents in 24 countries for the Mullen FIVE EV Crossover so far. But is preparing to launch its EV cargo vans which will introduce the brand to a new market with a range between 160 and 200 miles. This commercial electric vehicle alternative is highly customizable and will be available in a single or dual electric motor configuration. Its two classes of electric vans will be designed, manufactured, and customized at the company’s Tunica, Mississippi manufacturing facility before rolling out in Q2.
Despite all these underlying qualities, what has attracted most investors’ attention is the stock’s short squeeze potential. After its announcement regarding the company’s next-generation polymer battery technology, the stock surprised shorts with a tremendous upsurge. 4.2 million FTD are due and short exempts only had 2 trading days to cover if MULN rose above $1 however, only 4.19% of its common stock shares are currently sold short. MULN has low float of 22 million shares and an OS of 35 million which means even if a short squeeze does not materialize, the stock could see a bounce back after profit taking.
Media Sentiment
@ATL_EN and @Noted_Thanks_ are bullish on MULN’s short squeeze potential
But @KingShard1 see’s MULN’s long-term potential after his experience with NIO
Technical Analysis
Currently, MULN stock is trading at $1.06 with an immediate resistance at $1.94 and a secondary resistance at $3.65. It shows a support at $.54 as well. Accumulation spiked and dropped with profit taking while the RSI cools off at 50. The MACD is now bearish.
Those bullish on MULN’s short squeeze potential will be watching to see if it can stay above $1 but MULN stock appears to have approached its bottom at $.50 which is a new low for the stock. Based on the company’s upcoming catalysts, its possible the stock will see a reversal.
MULN Stock Forecast
In light of the company’s extensive efforts to provide advanced EV battery technologies, MULN has been gaining much interest from investors. Along with its efforts to develop the much anticipated Mullen FIVE and the rollout of its EV cargo vehicles, the company could regain some of the ground its lost and trade above $3.65 once again. In the long-term, if the company’s research proves actionable, then MULN stock has the potential to become a profitable long-term investment.
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