23.6 C
Thursday, June 1, 2023

Mullen Powerful Reversal Northbound as Short Position Hits 34 Million

Mullen Automotive, Inc., (NASDAQ: MULN) – Made a powerful reversal off $0.72 Lows on Thursday morning and spiked to a high of $0.94 as the short position increased its position to over 34 million shares according to Ortex; a sure sign Mullen has reached its bottom and is now on a major reversal northbound. Mullen has seen steady declines in recent weeks and has been on a straight line drop since the stock was over $10 per share in February. At current price levels Mullen trades at a market valuation of just over $100 million, a small number indeed for a Company that has $116 million in the treasury, is receiving another $45 million on July 12 and plans to go into mass production of its M3 Van at its Tunica facility starting in July.  

Mullen is starting to look significantly undervalued at current levels and the short position which has increased its position by 10 million shares in recent days, is starting to get skittish and today’s move proves it. They have shorted the stock into oblivion and significantly increased their positions to the point where they know they might be in serious trouble here especially as Mullen continues to tick northbound. Mullen has a long history of making major reversals northbound and has made several of them over the past year. In spring 2022 after months of downward pressure Mullen reversed off $0.52 and rocketed up to a high of $4.16 a 900% reversal in 3 weeks. This is a troublesome history for the short position who know they will have difficulty covering 34 million shares of Mullen if the stock continues to move northbound. We will be updating on MULN when more details emerge so make sure you are subscribed to newsytrends.com by entering your email below.

Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!

At just over $100 million market valuation Mullen is beginning to look like a buyout candidate. Besides the $116 million in the treasury, as well as the $45 million coming on July 12, Mullen has over $400 million in assets and while they carry these assets at $400 million in their books this is not a true picture of the real value of Mullens assets. Mullens Mishawaka, Indiana manufacturing facility where Mullen will manufacture the Bollinger B1s and B2s as well as the Mullen FIVE covers 650,000 sq. ft. of manufacturing space and previously produced General Motors Hummer H2 and the Mercedes-Benz R-Class vehicle. In the past the facility produced 100,000 vehicles per year and ELMS paid $145 million for the facility when they bought it. Michery has stated in numerous interviews that it would cost well over $1 billion USD to build the facility from the ground up. Mullen acquired the assets of ELMS for pennies on the dollar following ELMS bankruptcy after its $1.4 billion SPAC IPO 

Mullen also owns its manufacturing facility in Tunica, Mississippi where the Company plans to enter mass production of its M3 Van in July covering 120,000 sq. ft. turn-key engineering facility on 100 acres. Mullen brought on NRTC to get the facility production ready and recently completed transferring commercial vehicle equipment from Indiana to Tunica. Mullen has hired 35 additional plant staff to begin production and anticipates deliveries and revenue from the Class 3 truck in August and September 2023.   Mullen is also currently building a 1.2 million square ft. expansion of the facility. These two manufacturing facilities would be highly attractive assets for any automaker or EV Company 

Mullen also has other assets that would be attractive to most EV automakers including its high-voltage battery R&D facility, located in Monrovia, Calif. After acquiring the facility with the CODA assets, Mullen retrofitted the facility to accommodate the production of EV battery packs. Mullen also owns another battery manufacturing facility in Detroit. This represents a significant footprint across the country, a setup any US ev automaker would want to own. Mullen also owns a valuable intellectual property portfolio related to all aspects of the EV business acquired through the acquisitions of Bolinger which has a huge patent portfolio related to the B1 and B2, ELMS as well as CODA where Mullen acquired patents related to solid state polymer battery cell technology. Mullen also filed over 100 patents for the FIVE, many of them on the EVs PERSONA infotainment technology that utilizes facial recognition to personalize the driving experience for every individual.  

To Find out the inside Scoop on MULN Subscribe to newsytrends.com Right Now by entering your Email in the box below

Mullen is also on the cutting edge of EV battery technology and has created solid-state polymer batteries that are resistant to fire and when installed in the Company’s FIVE RS on an 800-volt architecture, the car has 1,100 horsepower and goes from 0 to 60 in 1.7 seconds. Mullen Lithium-Sulfur batteries use the same manufacturing equipment as Lithium-Ion, but with simpler steps and a smaller factory footprint, resulting in less than half the cost to manufacture. By taking battery pack production in-house, Mullen is able to lower costs and increase overall quality control in battery pack development and it reduces Mullen’s dependency on third-party suppliers and reduces the risk associated with material and supply shortages, which currently plague the automotive industry. Mullen also owns 51% of MAEO that holds Lawrence Hardge revolutionary battery technology that according to recent press releases the Company’s Class 1 EV Cargo Van showed a 75% increase in range when tested with the EMM technology which Mullen plans to retrofit on all upcoming models 

 We have something big coming Subscribe Right Now!

Mullen is now on a powerful reversal northbound after hitting lows of $0.72 per share on Thursday morning. After spiking to highs of $0.94 Mullen gave back some of its gains hitting $0.81 before continuing northbound from there. The spike to $0.94 also proved Mullen short position is getting extremally skittish here. As we said, covering 35 million shares in a hurry as Mullen moves northbound is not going to be so easy. There are also a lot of catalysts at play here including Mullens 50% owned Saudi deal which is close to be finalized by all accounts with Mr. Hardge headed to Saudi Arabia next week. Mullen has already secured $279 million in orders from Randy Marion and as the Company prepares to enter mass production in Tunica in July the current market valuation does not represent the real value of this Company meaning Mullen can more far here.  We will be updating on MULN when more details emerge so make sure you are subscribed to newsytrends.com by entering your email below.

Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!

Disclosure: we hold no position in MULN either long or short and we have not been compensated for this article.

More articles


Please enter your comment!
Please enter your name here

Latest article

Sign up now for our 100% FREE Penny Stock Newsletter

Privacy Policy. we will never share your email with anyone.