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Re: dealerschool2006 post# 15462

Sunday, 05/01/2022 8:23:39 PM

Sunday, May 01, 2022 8:23:39 PM

Post# of 72888
Darn, I guess I’ll sell my 75K shares tomorrow morning at market!

MULN

But Mullen Automotive’s difficulties are hardly that simple. And it would be a mistake to neatly package them under the pretense of broader macro issues. Today let’s review some of MULN stock’s more recent plot developments, off and on the price chart, and why steering clear of the company continues to make sense.

MULN
Mullen Automotive
$1.32
MULN Stock EV Podium Dreams

In some ways not much has changed in the month since I was last tasked to discuss MULN stock. It’s still about two years until, cross your fingers, until Mullen Automotive’s $55,000 compact, luxury EV crossover Mullen FIVE puts it rubber to the road.

Critical to the bull thesis in MULN stock and why holding a long position makes sense, the FIVE has garnered plenty of positive buzz after winning the prestigious ‘Top SUV’ ZEVAS award this past year. It won on the back of specs which have many anticipating the concept stage EV play could be a so-called Tesla (NASDAQ:TSLA) killer.

Yeah, the Mullen FIVE certainly looks the part of a badass vehicle.

Then there’s Mullen’s commercial EV vans. The company’s Class 1 EV and 2 EV cargo vans for fleet customers are set for launch later this year. Not much has changed there either. Appreciatively though, a finished product and revenue stream that doesn’t look like today’s bagel, does appear to be nearby.

Newer to MULN stock scene, the outfit announced plans to break ground for a facility in California for EV battery pack production. And just last week Mullen said it will begin testing on its next-gen, solid-state polymer battery cell which is purported to have a driving range of more than 600 miles. Results are set to be released in early May.

Mullen’s Other Fabrications

What’s being bullishly fabricated by the company may not be all that it’s cracked up to be. Mullen Automotive remains a pre-revenue EV play pitting bullish Redditors more interested in short-lived, short squeezes under typically hyped pretenses, against more entrenched bears whose ranks total about 15% of MULN stock’s float.

More to the point, short sellers have been winning in these sorts of plays now for more than a year now. And there are weaknesses in MULN stock that may prove too much to overcome.

Share dilution. Insider selling. You can check those undesirable boxes in MULN stock. Then there’s notorious, but on-the-money short seller Hindenburg Research. The firm recently called out Mullen’s solid state battery as a fabrication and the company as “yet another fast talking EV hustle” whose dots cannot be connected.

Along with serious cash burn and a challenged financial position, they’re among reasons why a significant bear population persists in MULN stock despite a market capitalization that’s dwindled to less than $425 million and share price fetching under $1.50.

7 Bear Market Stocks to Buy if You're Feeling Fearful

Lastly, Reddit’s losing battle in MULN stock this year is unlikely a great sign given the group’s dismal track record from A to Z or rather AMC Entertainment (NYSE:AMC) to Zomedica (NYSEARCA:ZOM) and all those other fly-by-night and now, forgotten tickers in-between. Sorry, it’s not 2021 anymore folks.

Steer Clear of MULN Stock

From what’s been laid out today, my advice remains the same as when the stock traded for $3.05 following some sexy vroom, vroom PR from CarBuzz which had Redditors gassing up shares. And that recommendation is to stay out of harm’s way in MULN stock. It worked then and today it’s likely good advice.

If Mullen Automotive was to ever become a Tesla killer or even a fraction the size of the EV giant, today’s reality is so far removed from the proverbial winner’s circle, investors are better off waiting and then paying for a $2 billion or $3 billion valuation in MULN stock at a much higher share price.

The thing is, if MULN were ever able to add that type of value, it will be something other than further share dilution. Which today, is an almost a certain reality.

And at this point in time, if Mullen ever makes it into the bigger leagues of mid-caps, it’s actually much more likely to have something tangible to offer longer-term bullish investors, other than today’s fast money, all talk Reddit penny stock operations still driving shares.
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