On Friday last week, Mullen Automotive closed the markets down 3.82 percent after reversing the previous day’s 19 percent price surge. Overall, the company closed the week with a 52 percent surge in value.
Why did Mullen Automotive Stock Price Surge?
Mullen Automotive is an emerging electric vehicle (EV) manufacturer based in Southern California. The company has recently received a purchase order for 6,000 Class 1 EV cargo vans from Randy Marion Isuzu, a division of the Randy Marion Automotive Group (RMA). This purchase order is valued at approximately $200 million and is set to commence in the first quarter of 2023.
RMA is a well-respected commercial vehicle dealer group in the US, and the partnership with Mullen Automotive marks the company’s first commercial dealer partnership. In addition to offering sales, service, and parts for Mullen Automotive’s commercial vehicle lineup, RMA’s commitment to purchase the 6,000 cargo vans demonstrates confidence in the company’s products and future growth potential.
Mullen Automotive’s commercial EV lineup includes Class 1-3 cargo van and cab chassis offerings, as well as Bollinger Motors Class 4-6 chassis products. All of these vehicles will be manufactured at the Advanced Manufacturing and Engineering Center (AMEC) in Mississippi.
The company’s first EV, the Mullen FIVE crossover, is set to be delivered in 2025 and features an award-winning design and patented PERSONA technology that uses facial recognition to personalize the driving experience for each individual.
In September 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and in December 2022, the company closed on the acquisition of all of Electric Last Mile Solutions’ (ELMS) assets, including all intellectual property and a 650,000-square-foot plant in Mishawaka, Indiana. These events suggest that Mullen Automotive is actively expanding its portfolio and capabilities in the EV market.
Overall, the recent purchase order and partnerships suggest strong demand for Mullen Automotive’s products and a positive outlook for the company’s future growth. The company’s focus on innovation, as demonstrated by the development of the Mullen FIVE and the acquisition of ELMS, also bodes well for its long-term competitiveness in the EV market. I
Mullen Automotive Price Forecast
As stated in the above fundamental analysis, the recent order and partnerships suggest we might continue to see strong demand for Mullen Automotive’s products. Therefore, in the next few trading sessions, I expect to continue seeing the company’s value continuing to make significant milestones in the industry.
There is a high likelihood that we might see Mullen Automotive stock price trading above the $0.5 price level in the next few trading sessions. It is also highly likely that, what we saw last week, is a snapshot of what we should expect from the company, performance-wise, in the next few weeks, and possibly months. However, a drop below the $0.18 demand level will invalidate my bullish trend analysis.
Mullen Daily Chart
