Monday, June 03, 2024 2:39:24 PM
By: Crispus Nyaga
on Jun 3, 2024
Mullen Automotive (NASDAQ: MULN) stock price has remained under intense pressure as concerns about the company and the electric vehicle industry continued. It plunged by more than 12% on Monday even as other meme companies like GameStop and AMC Entertainment surged.
Balance sheet issues remain
Mullen Automotive has made a lot of progress in the past 12 months. It has already secured many orders from Randy Marion, one of the biggest dealerships in the United States. Some of the vehicles it is already selling are Mullen One and Mullen Three, which are usually bought by small businesses.
Mullen also received an order of 40 Mullen-Go urban delivery vehicles from Antidoto, a Swiss company that focuses on food deliveries. It is one of Mullen’s venture outside the United States. Still, the company’s core challenge is that its balance sheet is a bit strained. The company ended the last quarter with just $22 million in cash and short-term investments. It had over $214 million in cash in its second quarter of 2023.
This balance sheet means that the company will need to raise cash because of the amount it is incinerating. It had a net loss of over $132 million in the first-quarter even as it continued delivering vehicles. Mullen Automotive’s total net loss in the past five quarters totalled over $787 million. While vehicle deliveries will help it to offset these losses, history from other EV companies like Nio, Lucid Motors, and Rivian shows that they continue to lose money for a few years after starting their deliveries.
Mullen has already started to boost its balance sheet. In May, the company reached a $100 million financing commitment from a family office. It also sold $50 million in senior secured convertible note to a group of investors. These funds will help it run its operations without needing to raise capital for a year.
In addition to its balance sheet, it is unclear whether there is enough demand for its vehicles. While these vehicles are not all that expensive, I believe that many customers still prefer diesel trucks.
Mullen Automotive stock price forecast
MULN chart by TradingView
The MULN share price has been in a freefall for a long time, as I wrote here and here. Its attempts to recover have found strong resistance as short-sellers came in. Its most recent attempt happened between April and May as it soared to $7.66.
The stock has remained below the 50-day and 15-day Exponential Moving Averages (EMA). It has also slumped below the descending trendline shown in black. Therefore, the outlook for the stock is bearish, with the next support to watch being at $2.30, its lowest point in April.
https://invezz.com/news/2024/06/03/muln-stock-price-forecast-is-mullen-a-good-buy-in-may/
Recent MULN News
- Mullen Announces Class 1 EV Sale to Massachusetts Dealer Partner, Eco Auto • GlobeNewswire Inc. • 07/02/2024 01:00:00 PM
- Bollinger B4 Chassis Cab Achieves Certificate of Conformity from Environmental Protection Agency • PR Newswire (US) • 06/24/2024 01:30:00 PM
- Effective June 18, 2024, Mullen Subsidiary, Bollinger Motors, Receives EPA Certification for Class 4 EV Commercial Trucks • GlobeNewswire Inc. • 06/24/2024 01:00:00 PM
- Mullen CEO Shares Recent Milestones with Committed Capital of $250M; Highlights Include 2 State Incentive Approvals for Class 3 EV Trucks, Commercial Sales and Technology Advancements and Dealer Network Expansion • GlobeNewswire Inc. • 06/20/2024 01:00:00 PM
- Bollinger Motors Announces Sale of 80 Bollinger B4 Chassis Cabs to Momentum Groups • PR Newswire (US) • 06/13/2024 01:30:00 PM
- Mullen Subsidiary Bollinger Motors Receives $13.2 Million Sales Order from Momentum Groups • GlobeNewswire Inc. • 06/13/2024 01:15:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 12:00:10 AM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 06/12/2024 09:00:06 PM
- The State of Massachusetts Issues MOR-EV Approval, Granting Mullen’s Class 3 EV Truck a $15,000 Cash Voucher per Vehicle Sold • GlobeNewswire Inc. • 06/11/2024 01:15:00 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 06/10/2024 09:15:17 PM
- Mullen Announces Addition of New England Area Dealer and Initial Purchase Order • GlobeNewswire Inc. • 06/10/2024 01:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/06/2024 09:20:37 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/06/2024 07:23:17 PM
- Mullen Announces Hiring of Former European Manheim and Copart Executive, Alain Van Munster, to Lead Europe Sales Efforts • GlobeNewswire Inc. • 05/31/2024 12:30:00 PM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 05/30/2024 09:15:17 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 05/30/2024 04:15:06 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/29/2024 04:46:22 PM
- Mullen Announces New Commercial EV Fleet Order for Europe • GlobeNewswire Inc. • 05/29/2024 01:29:35 PM
- Mullen Announces Development of Zero-Emissions, All-Electric PowerUP Mobile EV Charging Truck • GlobeNewswire Inc. • 05/28/2024 01:00:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/24/2024 09:15:36 PM
- Mullen Announces New European Distributor, GAMA, for the Balkans Region • GlobeNewswire Inc. • 05/24/2024 01:00:00 PM
- Bollinger Motors Announces Sale of 50 Bollinger B4 Chassis Cabs to EnviroCharge • PR Newswire (US) • 05/22/2024 01:15:00 PM
- Mullen Announces Bollinger Motors Sale of 50 Bollinger B4 Chassis Cab EV Trucks to EnviroCharge • GlobeNewswire Inc. • 05/22/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:34:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:31:23 PM
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