The reason why Mullen Automotive’s (MULN) stock (NASDAQ:MULN) price increased by more than 50% in one day is straightforward. Electric Last Mile Solutions, a bankrupt EV player focused on final-mile delivery cars, was purchased by the business.
At first glance, it’s not that fascinating, but when you delve deeper, one thing becomes evident. Mullen Automotive has significantly advanced its goals while lowering the cost of growth and increasing capacity. This amounts to a huge victory for the firm, which was set to begin manufacturing its flagship model in 2024. Plans have now been expedited by up to a year, implying that production of the FIVE-series of SUV crossovers might begin in 2023.
What Is Mullen Automotive?
Mullen Automotive was formed through the combination of Mullen Automotive and Coda Automotive. The corporation was founded in 2014, and its founding companies have been operating for quite some time. Today, the business is working hard not just to bring its FIVE series of cars to market but also to enhance solid-state battery technology. In terms of the new science, the firm is among the best-positioned small operations and has achieved significant progress. While solid-state (lithium-sulfur, for example) batteries are still years away from commercial practicality, they promise to make EVs lighter, cheaper to produce, and provide double the range.
Electric Last Mile Solutions was bought in bankruptcy court for just $92 million and included intellectual property, inventory, and a manufacturing factory in Mishawaka, Indiana. This facility has the potential to create 50,000 cars per year, thereby adding 50% capacity to the commercial line and more than doubling the company’s capacity to make retail vehicles, which is not a bad bargain at all. In this sense, even if Mullen Automotive fails to produce vehicles, the company is amassing a solid portfolio of assets that will be valuable to another EV producer.
MULN Stock: An All-Time Low
MULN stock (NASDAQ:MULN) reached an all-time low only a day before the company announced the acquisition of Electric Last Mile Solutions, but the situation is much different now. The acquisition triggered a 50% surge in share prices, which was followed by another 15% gain in after-hours trading, indicating that MULN stock (NASDAQ:MULN) is on the rise. The price of this penny stock will certainly return to the dollar area.
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Author Okoro Chinedu 
