Despite a nearly 99% price erosion over the past year, shares of electric vehicle maker Mullen Automotive (NASDAQ:MULN) continue to grab investors’ attention. After dropping nearly 30% yesterday, the stock is up 6.7% at the time of writing today.
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Today, in a letter to investors the company has commented on the massive value erosion investors are facing. Mullen believes it is on track to reach production and subsequently the sale of its Class 3 commercial models during the quarter ending September 30.
The company currently has a cash pile of $86.7 million and last year made two key acquisitions. These include Bollinger Motors and certain assets of Electric Last Mile Solutions (ELMS). Bollinger is expected to launch customer pilots in the quarter ending December 31 and begin sales in the quarter ending June 30, 2024. Assets from ELMS include the production facility in Mishawaka, Indiana and the company plans to produce the Mullen FIVE EV Crossover and Bollinger B1 and B2 models at the plant.
Furthermore, the company’s Tunica facility is being fitted with equipment for the launch of its commercial Class 3 production in the quarter ending September 30 and the company has bagged orders worth $279 million from Randy Marion Automotive Group as well.
Despite these updates, it remains to be seen if investor confidence in the stock can rise up again. For now, short interest in the stock stands at about 11.9%.
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