Mullen Automotive Stock News– Page 2 of 2

MULN stock price collapsed to a record low as most small and upcoming EV startups continued struggling. Mullen Automotive share price dropped to an all-time low of $0.20, which is about 98% below its all-time high. It has plummeted by over 99% this year. The same is true for other EV stocks like Faraday Future, Arrival, and Hyzon Motors. Will Mullen Automotive shares recover? MULN share price plunged to a record low last week after the company completed its acquisition of Electric Last Mile Solutions last week. It spent about $105 million to acquire the company after it filed for bankruptcy. The company also acquired Bollinger, an EV company that focuses on buses, for $148 million. Therefore, with Mullen’s market cap standing at $339 million, there are signs that the acquisitions have almost failed. Still, the biggest challenge for Mullen is that its cash burn will continue increasing in the coming years. The company ended last quarter with $61 million in cash and short-term investments. Its cash burn stands at about $18.3 million per quarter. Therefore, investors can expect more dilution in the coming months as the company moves to the vehicle production phase of its operations. Indeed, the company has already filed with the SEC for a vote that will see it increase the number of common stock from 1.75 billion to 5 billion. It also wants to do a reverse stock split. Most importantly, the company has proposed issuing $150 million in convertible notes ad up to $190 million in convertible preferred stock. Therefore, there is a likelihood that the MULN stock price will remain under intense pressure in the coming months as investors exit fearing more dilution. Most notably, Mullen is attempting to compete with well-established and capitalized companies in the industry. As I noted last week, Rivian has over $13.2 billion in cash and thousands of customer orders. I suspect that the company will likely file for bankruptcy in 2023 or 2024. MULN stock price forecast The daily chart shows that the Mullen Automotive share price has been in a downward trend in the past few weeks. As it dropped, it managed to move below the important support level at $0.2115, which was the lowest level on October 18. It has crashed below all moving averages while the MACD has continued dropping. Therefore, the shares will likely continue falling as sellers target the key support level at $0.1650. A move above the resistance point at $0.30 will invalidate the bearish view.