Sometimes it’s enough just to get the job done. That’s what seems to have happened with Mullen Automotive (NASDAQ:MULN), as this lesser-known electric vehicle stock made a hefty delivery and collected a sizable payday in the process. That was enough to send Mullen up nearly 28% in Thursday afternoon’s trading.
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The delivery in question featured Mullen Automotive bringing in 50 Mullen ONE electric cargo vans to the Randy Marion Automotive Group. That delivery allowed Mullen to invoice Randy Marion for $1.68 million. The best part for Mullen, though, is that that’s just the beginning of the deal, reports note, as Randy Marion is in line to pick up 285 Mullen ONE vans over the next five business days. And even then, that’s just the beginning, as reports note that Randy Marion has an order for 6,000 vehicles total, though not all of them will be Mullen ONE vans.
A Little More Credible Now
One of Mullen’s biggest problems, according to reports, is a lack of credibility in the field. While Mullen’s fortunes over the last year haven’t exactly been great, it’s recently gained quite a bit of ground. That’s good news for anyone who picked up shares recently but not good news for anyone who held out long-term. And that, ultimately, isn’t a recipe for success, the report noted.
It’s also worth noting that short trading here might prove a problem, as the short interest ratio stands at 0.07 days to cover. That means that if bears wanted to pull out, they’d only need about a half-hour to do the job. This makes MULN easy to short from a mechanical standpoint: it should be easy to borrow shares to short, and the borrowing fees should be low. So, while Mullen is certainly gaining ground, that ground could be pretty rapidly reversed, especially if anything goes significantly wrong in the near term.
Is Mullen Automotive a Good Stock to Buy?
Turning to Wall Street, a look at the last five days in trading for MULN stock shows a significant ramp-up, as it’s up 39.97% in that period. Yet, expanding your view out to a year shows a stock on its last legs, having lost 99.76% of its value in that time.
