What is Mullen Automotive?

The automobile industry is changing rapidly. One area that is being disrupted is the types of vehicles sold. Data shows that 10% of all new vehicles sold in 2022 in the United States were electric vehicles. Another change is in China, where domestic brands have gained a substantial market share in the past few years.

Why did Mullen stock crash?

Mullen, Virgin Galactic, SoFi, OpenDoor, and Clover Health have a thing in common. All of these companies went public via the SPAC merger. In this process, a private company goes public by merging with a Special Purpose Acquisition Company (SPAC). Hundreds of SPAC mergers in the past few years formed a bubble that went bust in 2021. Since then, most of these stocks have been in a downward spiral.

Is Mullen Going Bankrupt?

Another concern for the MULN stock price was the rising bankruptcy risks. Besides, we have seen many EV companies fail in the past few years. A key concern is that Mullen is burning cash at a rapid pace. In 2022, the company lost more than $740 million. This was a big increase from the $44 million that it lost in the previous year.

Is Mullen Automotive a good investment?

We believe that MULN stock is not a good one to invest in for several reasons. First, the company has no proven technology. This means that investing in it is hoping that it will do well in the future and that its technology will work.