Mullen Automotive MULN Stock Forecast 2023
Mullen Automotive MULN Stock Forecast 2023: Read about the MULN Stock Price Target as well as the latest News from Mullen Automotive.
Latest MULN Stock Price
MULN Stock Forecast: Performance chart
- Last 1 Month: -66.9%
- Last 3 Months: -90.3%
- Last 1 Year: -98.5%
Mullen Automotive, Inc. (NASDAQ: MULN), headquartered in Irvine, California, is an American electric vehicle manufacturer. In recent months, the stock price of MULN has displayed significant volatility. Following a reverse stock split, MULN stock managed to surpass the $1 mark. However, it has since declined below $1 once more, facing considerable selling pressure. Year-to-date, MULN has experienced a substantial decline of approximately 90%.
The stock is highly volatile and meant for speculative trading only.
MULN Stock Prediction for the Next 5 Years (Aggregated)
- Mullen MULN Stock Price Prediction 2023 is $0.477
- Mullen MULN Stock Price Prediction 2024 is $0.577
- Mullen MULN Stock Price Prediction 2025 is $0.963
- Mullen MULN Stock Price Prediction 2026 is $1.6
- Mullen MULN Stock Price Prediction 2027 is $2.4
Mullen Latest News
- On June 1, Mullen Automotive (MULN) secured a $20 million investment from Acuitas Capital. As per the agreement, an additional $45 million will be disbursed on June 12. In exchange for this investment, Mullen will offer Acuitas 19.43 million shares of common stock, along with pre-funded warrants and warrants exercisable for 59.07 million shares.
- Mullen has also announced a resale option for up to 242.12 million shares of common stock. This provides an opportunity for existing shareholders or potential investors to participate in the offering and acquire these shares.
- Mullen Automotive has partnered with Amerit Fleet Solutions to provide nationwide servicing and warranty support for their commercial vehicle lineup. Amerit Fleet Solutions is a leading provider of fleet maintenance and repair services with over 1,800 service professionals. This partnership will ensure that Mullen customers have access to superior service and support for their commercial vehicles.
- Mullen Automotive has received $279 million in purchase orders from Randy Marion Automotive Group, one of the largest commercial vehicle dealer groups in the United States. Randy Marion Automotive Group will act as the country’s distributor of Mullen’s commercial electric vehicles (EVs). The initial deliveries of the Class 3 vehicles are expected to begin in August and September 2023.
Mullen Stock Forecast: MULN Technical Analysis
Mullen Automotive stock is witnessing a massive sell-off and it is on the verge of falling back to its pre-reverse split stock price. The recent sell-off of MULN stock this week is believed to be a result of another instance of dilution. Mullen in its latest filing to the Securities & Exchange Commission (SEC) mentioned the issuance of common stock and warrants to Acuitas Capital. As per the June 5 filing, Acuitas Capital purchased 19,493,071 shares of MULN common stock and pre-funded warrants, which have the potential to be exercised for 8,074,124 shares of common stock, for a total payment of $20 million.
Mullen is in need of huge capital to ramp up its production. Therefore the company is continuing the stock dilution in order to raise capital. The stock price is now below $0.50
Here is how MULN Performed on the Last Trading Day
- Open: $0.5177
- Close: $0.4680
- Gain/Loss: -9.60%
- Market Cap: $102.19 M
Mullen stock failed to defend the $0.50 support and the stock price fell below $0.50. With the current momentum, MULN stock could potentially fall back to its pre-reverse stock split price of $0.06. Another round of reverse split could also be expected in order to keep the stock listed on the NASDAQ exchange.
On the 4-hour timeframe chart, the net MULN stock price failed to hold above the $0.50 level and the price is heading for lower levels.
MULN is below both 50-day as well as 200-day MAs. The 50-day MA is $1.07 and $4.07. The price is on a downtrend. The stock price of MULN is currently below both the 50-day and 200-day MAs, indicating that it is trading at a lower level compared to these averages. The stock is experiencing a downtrend, which means that the overall direction of the stock price has been consistently downward. This is indicated by a series of lower lows and lower highs on the above chart.
The combination of a stock price being below both MAs and on a downtrend indicates a bearish sentiment in the market. It implies that the selling pressure has been stronger than the buying pressure, resulting in a decline in the stock price.
The Relative Strenght Index of MULN adds to the bearish sentiment. The RSI on the 4-hour timeframe chart is within the oversold territory. The sellers have outnumbered the buyers. The RSi at the time of writing is 25.39.
On the Williams Percent Range chart, the W%R is at -98.9 and it is on the uptrend. The W%R is within the oversold territory and it is on the downtrend indicating a bearish momentum.
On the MACD chart, the MACD line and the signal line are both on the bearish axis. The signal is a sell.
Overall MULN is neutral and the trade recommendation is a hold.
Mullen Automotive Stock Price Prediction: Buy or Sell
|1. Market's Wisdom||Neutral|
|1a. Market Data||Partially Bearish|
|1b. Technical Recommendation||Buy|
|2. Crowd's Wisdom||Partially Bearish|
|2a. Social Media Buzz||Steady|
|2b. Social Media Sentiment||Neutral|
Mullen Automotive’s stock price has remained lower due to the following major issues
- Lack of Innovation. None of the major patents after 2014 are unrelated to aesthetic design
- Heavy reliance on Chinese manufacturing
- No clear operational strategy to run the business
- Lack of adequate capital
- Lack of Sustainable Growth
Why is MULN Crashing?
MULN even after the reverse stock split has failed to attract buyers and the stock price has been on a downtrend lately.
One of the concerns surrounding MULN is its financial situation. The company has been facing losses over several years, and its high debt burden has raised alarm bells. In its most recent quarterly report, MULN disclosed a net loss of $10.4 million, which has sparked worries about the company’s financial sustainability in the long term. These concerns have contributed to a decline in investor confidence in MULN.
Mullen Automotive’s recent 10-Q filing revealed troubling financial data. The EV company lost $67.5 million in operational cash in the first quarter of 2023, while also diluting shareholders by 60%. This led to a 5% decline in the company’s share price.
The filing also revealed that Mullen is on the verge of bankruptcy. The company has run out of financial options and has only $60.3 million in cash on hand. It is expected to receive an additional $45 million by July, but this is not enough to cover its operating expenses.
Moreover, allegations of fraudulent activities have surfaced in relation to MULN in recent months. These allegations have further eroded investor trust and confidence in the company. Such allegations can have a detrimental impact on a company’s reputation and may lead to increased scrutiny and legal consequences.
In summary, MULN has been adversely affected by the overall market downturn, concerns about its financial performance and debt load, as well as allegations of fraudulent activities. These factors have contributed to a decline in investor confidence and have likely impacted the stock’s value.
MULN Stock Forecast 2023: Will Mullen Beat Earnings?
Mullen Automotive Inc will likely announce its Q4 2022 results soon. The automotive company is yet to deliver its first EV vehicle. However, in December 2022, Mullen’s first vehicle I-GO arrived in Europe. The deliveries are expected to start in the first quarter of 2023.
Added to this, Mullen Automotive announced a huge EV Van order from Randy Marion Group in Q4 of 2022. This deal, for 6,000 vehicles, came with the expectation deliveries would begin by the end of Q1 2023.
However, MULN is unlikely to beat its earnings for Q4 of 2022. Most of the activities related to Mullen EV are yet to see the light of reality.
Mullen Automotive expects earnings per share of $1.30 for the year, down from their previous forecast of $1.35.
Note: In the first three quarters of 2022, Mullen has continuously reported a fall in revenue.
Mullen Automotive Q3 Result
|Net change in cash||23.26M||3839.85%|
|Cash on hand||NA||NA|
|Cost of revenue||145.8K||86.85%|
Will MULN Stock Reach $1 or Will MULN Recover?
Hitting the $1 would not mean a big task for the Electric Vehicle company’s stock as the EV market has been growing. However, the case is slightly different for Mullen Automotive. The company was founded in 2014 and even after 8 years, Mullen is yet to deliver its first EV.
However, things have been changing recently with Mullen’s first EV Van arriving in Europe. Things have been speeding up for the Electric Vehicle company lately and this could help the MULN stock price reach $1 soon.
Here are a few things that have happened with Mullen Automotive in the last few months:
- I-GO vehicles arrive in Europe – Mullen’s first vehicle I-GO has arrived in Europe. It is an urban commercial delivery vehicle designed for space constraints in dense cities throughout Europe. The vehicles are delivered to Newgate Motor Group in Ireland. The model is the first of its kind to be delivered successfully by Mullen and will contribute towards revenue for the company in the 2023 first quarter.
- Deal with Randy Marion Automotive Group (RMA)- RMA has become Mullen’s first commercial dealer partner. RMA is one of the largest and most respected commercial vehicle dealers in the US. So, a division of RMA has agreed to purchase 6000 of Mullen’s Class 1 EV cargo vans. The deal is worth approximately $200 million and it could be a major revenue source for Mullen. Additionally, as RMA is a dealer, this deal could be the beginning of serving commercial EVs to one of their customers.
- Mullen Automotive to provide EV charging solutions – Mullen Automotive apart from selling EVs is now venturing into EV infrastructure. It has disclosed a partnership with EV charging solution provider Loop Capital. Loop will provide $300 million in financing via Loop as a Service program to deploy Level 2 and 3 DC charging stations across the Mullen charging network. The partnership will combine Mullen’s expertise in electric vehicle design and engineering and Loop’s expertise in electric vehicle charging infrastructure.
It can provide a comprehensive solution to businesses and resident EV drivers. So Mullen will not only be able to provide turnkey EV charging solutions to its customers but to scale it further for other brands also. This is in line with the EV infrastructure bill passed in the US in 2021 as government plans to spend $1 trillion on EVs and its infrastructure by 2030.
The deals mentioned above have come at the fag end of 2022 and can be a major source of revenue for Mullen going into 2023 as it is still to open the account in the revenue column in the balance sheet.
MULN Stock Forecast: Will MULN Recover?
Mullen Recovery: The Bear Case
The reverse split – Keeping aside the deal and company and talking about the stock, there is an impending reverse split proposal yet to be passed by stockholders. On September 9, 2022, Mullen received a notice from the exchange as the share price was below $1. To avoid delisting, management came up with the proposal of the reverse split in the ratio not less than 1-for-2 and not greater than 1-for-25. The special shareholders’ meeting for the passing of the resolution was conveyed on December 23rd, 2022. But the attempt to win shareholders’ approval on Dec 23rd failed due to lack of quorum. Most shares that voted were in support, but the vast majority abstained.
Now the voting will again take place on January 19th, 2023. Mullen has March 6th, 2023 to take the share price above $1 per share or face delisting. However, it may get 180 days extension, but in all likelihood, it will be approved in the upcoming meeting. The current share price is 36 cents and a 1-for-25 reverse split will take the share price to $9 approximately which will be sufficient to remove the tag of a penny share from the stock.
But the reverse split is seen with negative sentiment in the market. It is seen as a last resort to lifting the share price artificially and signals that the company is in deep trouble. A reverse split is not a good sign for MULN stock to begin 2023.
The company is still at a very nascent stage- Mullen has a market capitalization of about $400 million, but it does not have the cash to start production at a scale. Since June last year, it has acquired two bankrupt companies. Bollinger Motors and Electric Last Mile Solutions (ELMS). The deal with ELMS brings an Indiana plant where it can make the electric SUV called the Five. But both plants need cash to go into production.
And Mullen lacks cash for sure. It had only $61 million of cash in June 2022 and it bought ELMS after raising $150 million from shareholders. CEO David Michery has been promising to start production soon but is short of performance. He sold 2.53 million shares as MUN stock has fallen and that is not a move to inspire investors’ confidence.
With no revenue and limited cash, Mullen is at a very nascent stage and it will take at least a couple of years before we can make a concrete decision on Mullen based on the company’s finances.
Is MULN a Good Stock to Buy? Will MULN Go Up?
Mullen Automotive’s stock has been very volatile in 2022 and from trading at $5.23 on January 1st, 2022, MULN has fallen below $1. Therefore, considering the stock performance in 2022, MULN is not a good stock to buy as of now.
However, it would be completely unfair to reject MULN depending on its 2022 performance. Mullen is an automotive company dealing in Electric Vehicles. The EV market is dominated by Tesla and this year TSLA shares went above $400 but now it is below $200. Therefore, it is not just MULN but all the EV company’s shares have fallen massively. The future of MULN primarily depends upon the future of electric vehicles.
Public spending on EVs has increased massively in recent years and it is set to increase in the coming years with dependency on petroleum fuels decreasing.
However, the Covid-19 pandemic and Russia’s war in Ukraine had disrupted global supply chains. As a result, the car industry has been heavily affected.
Apart from this, one main problem with Mullen is that none of its cars have gone for sale as of now and the first car sale by Mullen may take place in 2023. Therefore, even if the MULN stock gains now, the gain may not be a larger one.
In the future, MULN stock may witness a huge surge after its EVs start to hit the market. Therefore, MULN is a good buy for long-term investments but for short-term it is advisable to trade with caution.
MULN Stock Forecast: Conclusion
Mullen Automotive is a pre-revenue company with limited cash. Its only model The Five is on a country tour since last year, but it lacks enough cash to get this out of the door. In this fragile economic environment, the world demands financial performance, but Mullen has only promises to offer. The deals with RMA and Loop Global can certainly be positive catalysts for 2023 and will give Mullen a much-required boost.
In a business 1+1 sometimes equals 2, and sometimes it can be 1. But sometimes 1+1+1 can also be zero. The future of Mullen looks gloomy and 2023 looks to be no different for MULN stock.
Who are some of Mullen Automotive’s key competitors?
Mullen has two lines of businesses
- Electric Car Company – The Company is still in the development stage but key competitors would include Tesla, Ford, Lucid, Nio, Rivian and Cenntro
- Mullen Auto Sales Business which includes Car Hub – AI platform for selling and buying cars
Read: Ford Stock Forecast
Firms Behind Mullen Automotive
Mullen Automotive is owned by top institutions. BlackRock Inc. owns 5.16% of the company while Vanguard Group Inc. has a 4.44% share in Mullen
Apart from the two major shareholders, other Mullend Automotive shareholders are Automotive. State Street Corp (0.74%), Bank of New York Mellon Corp (0.28%), Bank of New York Mellon Corp (0.28%), and Two Sigma Investments LP (0.26%).
Also read: LUCID Stock Forecast
Hindenburg Hates on Mullen Automotive and I’m Here for It
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