The MULN stock price remains under intense pressure as demand for the shares evaporates and short interest rises. Mullen Automotive shares were trading at $0.2632, which was much lower than last week’s high of $0.6030. They have plunged by over 95% this year giving it a market cap of over $137 million.
Mullen closes ELMS deal
Mullen Automotive is a small company in the electric car company that is building vehicles in the United States. The company is involved in the manufacturing of EVs and solid-state batteries, which are believed to have superior performance.
Mullen Automotive has built Mullen Five, a car with a 325 miles range an a top speed of 155 miles per hour. It can move from 0-60 in just 3.2 seconds. In October, the company started a tour in which it showcased the vehicle. It hopes to start manufacturing the car in the next few months.
Mullen also acquired Bollinger Motors, a company that manufactures medium-sized trucks in the US. It paid $148 million in cash and stock for a 60% interest in the company. Bollinger has about 50,000 reservations for its B1 and B2 vehicles.
Further, Mullen bought Electric Last Mile Solutions (ELMS) out of bankruptcy. The buyout gave the company valuable intellectual property and a manufacturing plant. Last week, Mullen brought in the $150 million it needed to fund the acquisition. The CEO said:
“The completion of this acquisition brings together the critical enablers for our business strategy. With our Mullen, Bollinger and ELMS assets, as well as our plants, we are now in a unique position to be a leader in the new EV auto market.”
My concern with Mullen Automotive is that the company will ultimately need millions if not billions of dollars to bring its cars to the market. Companies like Tesla and Rivian have all spent billions in the past few years. As such, Mullen will need to either dilute its shareholders or turn to the highly expensive debt market for fundraising.
MULN stock price forecast
The daily chart shows that the Mullen share price has been in a strong bearish trend in the past few months. This decline has seen it crash from an all-time high of $18.9 to $0.30. It also moved slightly below the important resistance level at $0.5165. It has moved below all moving averages while the Relative Strength Index (RSI) moved below the neutral point of 50.
Therefore, the MULN stock price will likely continue falling as sellers target the key support level at $0.200. A move above the resistance at $0.3435 will invalidate the bearish view.
