Mullen Automotive Stock Forecast: MULN gains 5% on Friday as van production ramps up
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- Mullen completed production of 350 Class-1 EV vans.
- On Thursday, Mullen announced a new pilot program with the New York Power Authority.
- MULN stock gained 10.7% on Thursday.
- Mullen stock is in the green again on Friday.
After faltering at the beginning of the week, Mullen Automotive (MULN) stock is making a comeback in the second half. Dropping more than 26% through Wednesday, MULN stock took back 10.7% on Thursday and has added as much as 5% in Friday’s first hour of trading.
Mullen stock news: Production completed on 350 delivery vans
Mullen has been issuing press releases at a quickened pace of late. The announcement on July 5 that Mullen had obtained counsel to bring charges against alleged “naked short selling” led to MULN stock’s 200% surge in the first week of the month.
Then Mullen whetted the appetites of bulls the following day with the announcement of a $25 million buyback program that runs through the end of the year. Unfortunately, the policy does not oblige the company to use the funds for buybacks but only gives them the option to do so. Mullen had $235 million on its balance sheet from selling shares during the second quarter, but much of it is required to fund the production of commercial vehicles at its Tunica, Mississippi assembly plant.
“We are initiating this buyback program as an attractive opportunity to deploy capital and return value to our shareholders,” said David Michery, CEO and chairman of Mullen, at the time.
On Thursday, Mullen announced a new pilot program with the New York Power Authority (NYPA). The NYPA, a large state-owned power generation and transmission company, will test Mullen’s CAMPUS delivery van at its headquarters in upstate New York. Following the testing period, the company will have the ability to purchase these vehicles.
“The Mullen CAMPUS is a highly efficient electric van designed for low-speed, closed campus use [and] has all the same DNA as the Mullen ONE but was purpose-built to be an ideal delivery solution for micro-environments,” Mullen said in a statement.
This pilot program is similar to another one Mullen has with a university in North Carolina, which is testing more than dozen of these vehicles. Six other pilot programs for the CAMPUS vehicle were previously reported at the end of June when Mullen booked its first official revenue ($308,000) from the sale of 22 of these vehicles to the Randy Marion commercial dealership.
Now on Friday, July 14, Mullen announced that it has completed initial production of 350 Class-1 EV delivery vans at its Mishawaka, Indiana, facility and sent them for final assembly at its Mississippi plant.
Despite all the negativity surrounding the heavy dilution to shareholders in the past two years, the production team is beginning to show results. That is why the market is bidding up MULN on Friday. The company is finally moving away from its long-time reputation as an EV maker forever in its development stage.
Mullen stock forecast: Which way penny stock man?
Mullen remains highly affected by headlines, but the company’s buyback policy could have immense upside power. Mullen’s entire market cap is just circa $100 million, so if the entire $25 million worth of firepower is used, it could produce serious uplift to the MULN stock price.
Right now, Mullen stock is just escaping the oversold realm on the Relative Strength Index (RSI). Support remains at $0.1000, while the recent swing high creates a price target for bulls at $0.3212. With Mullen, anything could happen.
MULN daily chart
