A lot of premarket trading sent the price of Mullen Automotive (NASDAQ:MULN) down by a large amount. Millions of Mullen Automotive (NASDAQ:MULN) shares were traded, and pre-market lows dropped by double-digit percentages. MULN stock has gained around 50% in the past week alone and has nearly tripled since October 18 until the plunge in premarket.
The recent rise in the stock price was caused by the news that its I-GO model will be sold, distributed, and branded in Europe and by the closing of a deal for the now-defunct Electric Last Mile Solutions. John Schwegman, a former GM executive, joined the automaker’s leadership team on October 21.
Despite the sharp increase over the last ten days, the stock price of the EV company is still down more than 90% from where it started in 2022. Mullen Automotive (NASDAQ: MULN), including its factory, inventory, and intellectual property.
The factory in Mishawaka, Indiana, will be where both retail and industrial EV production lines for Mullen will be housed. Up to 50,000 vehicles can be produced there each year. Additionally, by using the assets, Mullen will be able to cut the time it takes to produce and market its Mullen FIVE and Bollinger B1, B2 retail vehicles by a full year.
In September, Mullen acquired its first electric vehicle (EV) by paying $148.2 million in cash and shares for a 60% controlling stake in Bollinger Motors, a maker of EV trucks. The most recent purchase of ELMS assets will help Bollinger’s vehicle platforms come together.
MULN Stock Has to Rise to and Maintain This Level
Mullen’s acquisition approach is, to put it mildly, aggressive. Buying all of ELMS and a piece of Bollinger Motors will definitely cost the company a large amount of money. But over time, this tactic could raise Mullen Automotive’s level of competition.
But there’s also another thing to think about. Mullen’s plan to grow could lead to an increase in the value of MULN shares in the future. Threats to delist the shares, though, might come up at some point.
Featured Image- Megapixl @ Rafaelhenriquepress