Stock Analysis & Ideas

Should You Buy Mullen (NASDAQ:MULN) Stock as BlackRock Ups Stake?

Story Highlights

BlackRock disclosed that it has increased its holdings in the penny stock MULN. The stock has gained about 23% in one month.

Mullen Automotive (NASDAQ:MULN) is in the headlines for positive reasons. What stands out is that the world’s biggest asset management company, BlackRock (NYSE:BLK), recently disclosed that it had increased its stake in this emerging electric vehicle (EV) manufacturer. While BlackRock’s investment in MULN is a positive development, penny stocks are inherently risky, and investors should take caution before investing.

While MULN stock has lost over 94% of its value in 2022, it has increased by about 23% in one month. 

Is MULN Stock a Buy?

Meanwhile, in its latest 13F filing, BlackRock revealed that it had increased its stake in Mullen Automotive stock by 234% in Q3. As stated above, BLK’s investment in MULN stock is a positive development and should support its stock price. 

Further, Mullen is focusing on strengthening its balance sheet and has recently announced that it has eliminated about $13 million in debt. Moreover, it has reduced its indebtedness to less than $10 million, compared to $30 million in the prior year. 

In addition, the company has also secured an exclusive right to sell I-GO, a compact urban delivery EV, in select European markets, which is positive and should drive its revenues. Moreover, the company is focusing on ramping up production and has acquired ELMS’ manufacturing plant. 

Overall, the recent developments support the upside in MULN stock. However, fear of equity dilution (as the company is still developing) and increased competition remain a concern. 

Bottom Line 

The company operates in the attractive EV space and has hit the headlines for good reasons in the recent past. Also, the stock looks incredibly cheap (due to the massive correction). However, MULN stock carries a Smart Score of four out of 10 on TipRanks, implying a Neutral outlook.

Furthermore, MULN, a penny stock, could remain highly volatile. Thus, for investors with an appetite for higher risk, MULN stock is a solid speculative bet. In addition to MULN, investors can find attractive penny stocks using our Penny Stocks Screener.


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