Source: rafapress / Shutterstock.com
I’ll admit it. I’ve been hard on electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN). Some time has passed, though, and my MULN stock forecast has changed now that the share price is so far down. If there’s a turnaround, it could be swift and Mullen Automotive’s investors may be positioned for outsized returns.
Sure, a short squeeze could propel Mullen stock higher. Yet, there are other reasons to lean bullish on Mullen Automotive. While Mullen’s financials aren’t perfect, at least there’s room for improvement and, as we’ll discover, the company is preparing to venture into multiple regional EV markets.
MULN Stock Hits Rock-Bottom (Hopefully)
Investing in Mullen Automotive has been a rough ride, no doubt. The company’s earnings losses have been a serious concern. Furthermore, Mullen faced a potential Nasdaq exchange delisting/noncompliance threat, though this issue seems to have been resolved.
Then there’s the gut-wrenching share-price drawdown. Mullen stock has lost much of its value during the past month, six months, one year and five years. Now, I’m starting to think that the market is being too harsh.
After all, Mullen Automotive’s financial situation isn’t entirely bad. For what it’s worth, Mullen recorded its first revenue of $366,000 last year. Moreover, Mullen Automotive delivered $652,200 worth of EVs to Randy Marion Automotive Group for resale in September.
There’s no denying that Randy Marion Automotive Group has been a great customer/partner for Mullen Automotive. Just recently, Mullen disclosed that “130 additional Class 1 EV cargo vans have been delivered and invoiced” for $4,372,550 to Randy Marion Automotive Group.
Mullen Automotive’s Progress in Multiple Regional Markets
As of Feb. 1, had invoiced $17,318,000 to date for commercial vehicles. In addition, the company claimed to be “out-of-the-gate with a positive gross profit margin per vehicle.”
Thus, it appears that Mullen Automotive might actually have what it takes to stage a turnaround in 2024. Adding to the bullish argument are a couple of positive announcements from Mullen.
First, Mullen Automotive announced that its Mullen THREE commercial electric truck is now California Air Resources Board (CARB) certified. This means the Mullen THREE meets the strict emissions standards of the District of Columbia and 14 U.S. states that have adopted CARB vehicle standards.
While the CARB certification opens up Mullen Automotive’s sales-generating potential in multiple U.S. regions, the company’s vision extends beyond the 50 states. In fact, Mullen is already making progress in the Dominican Republic and Caribbean EV markets.
Here are the details. Not long ago, Mullen Automotive announced “a vehicle order” with Grupo Cavel to “purchase Mullen CAMPUS EV cargo vans for sale in the Dominican Republic and Caribbean markets via Cavel’s Electric Motors dealerships.” Reportedly, Grupo Cavel has already placed an order with Mullen Automotive that includes 20 CAMPUS EV cargo vans.
Mullen Stock Forecast: Big Risk, but Big Potential Rewards
The market has been tough on Mullen Automotive, and so have I. Yet, my current MULN stock forecast calls for an imminent turnaround after a relentless and perhaps overdone drawdown.
If Mullen Automotive can seize its opportunities in certain U.S. states and in the Dominican Republic and Caribbean EV markets, Mullen stock could zoom higher and demolish the short sellers. There’s certainly no guarantee that any of this will happen. Still, if you can handle the risks and are seeking huge possible rewards, consider a small share position in Mullen Automotive.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.