Mullen Automotive (NASDAQ:MULN), a Californian electric vehicle (EV) manufacturer, has been grappling with a number of challenges, including a potential delisting by NASDAQ and a 5% stock drop on Tuesday. Despite these hurdles, the company has seen its first bullish uptrend since July 20 and has achieved significant milestones.
The fall is due to concerns over a potential US government shutdown and a possible 7% Federal Reserve rate hike suggested by JPMorgan (NYSE:JPM) CEO Jamie Dimon. This downturn comes despite the EV manufacturer's recent achievements, including securing Environmental Protection Agency certification for its Class 3 electric semi truck cab, the Mullen THREE.
The company also received substantial orders, notably a $63 million back order for 1,000 models from Randy Marion Automotive. The New York Power Authority expressed satisfaction with Mullen CAMPUS vehicles after a trial period and is considering additional purchases such as Mullen’s Class 1 EV cargo vans and Class 3 EV cab chassis trucks.
Despite these accomplishments, Mullen is facing the threat of delisting by NASDAQ following CEO David Michery's failure to maintain a stock price above $1. However, Mullen's vehicles have gained eligibility for $7,500 federal tax credits, enhancing their competitiveness in the market.
In addition to these developments, the article highlighted other key aspects of Mullen's business strategy. These include the company's partnership with a Chinese manufacturer for the Mullen-GO Commercial Urban Delivery EV, its 60% ownership stake in Bollinger Motors, and the authorization to sell up to 200 million shares.
The production timeline for the Mullen FIVE EV crossover was also noted. However, the company has faced criticism over its stock dilution since going public and recently implemented a 1-for-25 reverse stock split. Notably, the company's 9-day Simple Moving Average has surpassed the 21-day SMA, indicating a potential upward trend in the market.
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