The leading asset management company, BlackRock (NYSE:BLK), continues to show confidence in Mullen Automotive (NASDAQ:MULN). BlackRock’s Q4 13F filing shows it increased its exposure to Mullen stock. Shares of this emerging EV (Electric Vehicle) maker are up about 32% year-to-date.
After increasing its holdings by 234% in MULN stock in Q3, BLK bought additional shares in Q4. Per the filing, BLK increased its stake by 1% in Q4.
While BlackRock increased its stake, Mullen announced that its losses widened in Q4. It reported a net loss of $376.9 million in Q4 compared to $156.1 million in the prior year’s quarter. The losses widened due to increased non-cash financing expenses and a ramp-up in development efforts.
Nevertheless, it received a purchase order for 6,000 Class 1 EV cargo vans from Randy Marion Isuzu worth $200 million, which is positive. Also, it secured exclusive branding, sales, and distribution rights for Mullen’s I-GO (a commercial urban delivery EV) in some of the European markets.
The company also highlighted that it received shareholders’ approval for the reverse stock split. However, Mullen plans to enact the same if its stock fails to cross the $1 mark by September 6.
Is MULN a Buy or Sell?
The recent developments and BLK’s growing stake in MULN are positive signs. However, investors need to be cautious as MULN is still in the product development phase. The company expects to start the retail production of Mullen FIVE, its first electric crossover, in the fourth quarter of 2024.
As the company is in an early stage, access to capital, equity dilution, and competitive headwinds could continue to pose challenges. Meanwhile, MULN stock has a Smart Score of two on TipRanks, implying it is more likely to underperform the broader markets.
