MULN Stock Forecast 2023: Will MULN Rise Above $0.40?

MULN Stock Forecast 2023: Will MULN Rise Above $0.40?

MULN Stock Forecast 2023: MULN is technically neutral. Will the Bulls Take MULN Above $0.40 Once Again?


Latest MULN Stock Price

Forecast: Performance chart

  • MULLENLast 1 Month: +13.8%, 1 Year: -92.3%
  • NASDAQLast 1 Month: +4.9%, 1 Year: -21.5%

2022 has been a rough year for the auto industry, especially those selling electric vehicles. The stocks of the big auto companies like GM, Ford, Volkswagen, and China’s BYD are all down in the year 2022, but a notable downtrend is seen in Tesla Inc shares. Tesla shares are down by about 65% in the last 12 months. Numerous companies are preparing to take on Tesla Inc in the electric space, Mullen Automotive Inc (Nasdaq: MULN) being one of the less prominent ones.

2022 has been tough for Mullen. The company’s stock is down by about 90% in the last 12 months, though it is up by 11% year to date. That said, MULN has recovered somewhat from the lows of 2022 and is up nearly 100% in the last 30 days.

The stock is highly volatile and meant for speculative trading only.

MULN Stock Price Prediction for the next 5 years (Aggregated)

Mullen MULN Stock Price Prediction 2023 is $0.490

Mullen MULN Stock Price Prediction 2024 is $0.613

Mullen MULN Stock Price Prediction 2025 is $0.956

Mullen MULN Stock Price Prediction 2026 is $1.3

Mullen MULN Stock Price Prediction 2027 is $2.2

MULN Stock Prediction: Technical Indicators (24 hours)

MULN was trading at over $15 in November 2021 but by the end of February 2022, MULN fell below $1. MULN has been trading below $1 since then and has failed to rise higher. In December 2022 MULN was trading below $0.20 but in January 2023 MULN went above $0.40.

MULN is once again falling, “What is the reason behind the latest Drop in MULN Share Price?”

MULN stock started to fall after the report of Mullen Automotive failing to file its Form 10-K, or annual report, for the fiscal year that ended September 30, 2022 surfaced. On December 29th Mullen filed a Form NT which stands for “non-timely.” After this Mullen Automotive got a 15-day grace period, extending the deadline to file Form 10-K to January 13th.

Failing to file Form 10-K will lead to Mullen losing Rule 144 eligibility. The company will also lose the power to file a Form S-3 and a Form S-8 with SEC.

Technical Analysis

Due to the inaction of filing Form 10-K, MULN investors have restored to selling in the last few days. MULN saw a marginal recovery on the last trading day. Here is how MULN performed on the last trading day:

Performance on the Last Trading Day

  • Open Price: $0.2731
  • Close Price: $0295
  • Gain/Loss: +8.02%
  • Overall Market Cap: $640,275,654

Technical Indicators

  • Moving Average: Neutral
  • RSI: Sell
  • MACD: Hold
  • Stochastic RSI: Oversold

Overall: Hold

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Mullen Automotive Stock Price Prediction: Buy or Sell (6 Hours)

Overall OutlookNeutral
1. Market's WisdomPartially Positive
1a. Market DataPartially Positive
1b. Technical RecommendationNeutral
2. Crowd's WisdomPartially Negative
2a. Social Media BuzzLower
2b. Social Media SentimentNeutral

MULN Stock Forecast 2023: The Bull Case

  • 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 2023: 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.

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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

  1. Electric Car Company – The Company is still in the development stage but key competitors would include Tesla, Ford, Lucid, Nio, Rivian and Cenntro
  2. 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%).

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Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Vineet

Vineet

Vineet Agarwal is a trained technical analyst and avid stock trader. A graduate from a Top Technology Institute, Vineet carries out extensive technical and secondary research for this authored stock forecasts.

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