Mullen Automotive Stock News: MULN drifts lower ahead of shareholder meeting
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- Mullen stock has lost 22.1% over the past month, 4.7% over past five sessions.
- New agreement announced with Shoshoni Native American Tribe.
- Majority-owned Bollinger Motors receives $3 million grant from Michigan.
- Market awaits August 3 shareholder meeting for further news.
Mullen Automotive (MULN) stock has continued to cycle lower this week as investors wait for the outcome of the electric vehicle (EV) maker’s next shareholder meeting, scheduled for next Thursday, August 3.
Mullen CEO David Michery has already stated shareholders will vote on a reverse stock split at a ratio between 1-for-2 and 1-for-100. The MULN share price has languished for much of the year below the $1 value that the NASDAQ exchange requires listing companies to retain despite having already instituted a reverse stock split at a 1-for-25 ratio back in May.
A number of questions will be taken up at the meeting, including the ratio for another reverse stock split. MULN stock is trading down 1.4% in Friday’s premarket at $0.1228.
Mullen stock news: Bollinger receives Michigan grant
Bollinger Motors, an EV development-stage company that Mullen owns a majority stake in, announced a $3 million grant from the state of Michigan on Wednesday. The grant will be dispatched upon Bollinger reaching several milestones in job creation.
“Bollinger Motors is poised for growth and we’re proud to be focused on expanding our company’s operations as we approach start-of-production,” said Bollinger’s founder and CEO, Robert Bollinger.
Bollinger recently made headlines when it began pilot production on its all-electric, class-4 chassis cab. Named the B4, it can carry a payload of 7,080 lbs and has a battery range of 185 miles. The semi-trailer truck will compete directly with the Mullen Three model, potentially making Mullen one of the leading producers of electric commercial vehicles in the semi truck category. Bollinger plans to complete production of 20 units by the end of the third quarter.
Tesla (TSLA) is already underway with limited production of its own Tesla Semi model. The battery pack surpasses both the Mullen and Bollinger models with an expected range of 500 miles. At the moment, the Tesla Semi is being tested by Pepsi (PEP).
In other news, Mullen has entered into another pilot program with the Shoshoni Native American Tribe of Northern California, which will begin testing the Mullen One cargo van and its Mullen CAMPUS delivery vehicle at the Harrah’s Northern California Resort & Casino property. This is just one of a number of recent pilot programs in which organizations can test Mullen vehicles before making purchases.
“Our tribe’s vision to transition to electric-powered vehicles and sustain green initiatives is in line with the National EV Initiative for Tribal Nations,” said Chief William Bills, the CEO and president of the Shoshoni tribe.
Mullen stock forecast
Mullen stock has continued to drift lower after topping out on July 6 at $0.3212. The penny stock is down 22.1% over the past month and 4.7% over the last five sessions.
The short ratio for MULN stock is not terrible at 12%, but that figure comes from the most recent data on July 15. A little over 75.3 million shares were sold short on that date. Earlier this year, the short ratio had topped 20% for a time. At just 0.4 days to cover, the ratio does not seem high enough to make a short squeeze a no-brainer, but the number of shares sold short did double from late June.
Shareholders are hoping that the $0.10 level holds before positive news arrives from the shareholder meeting.
MULN daily chart
