Mullen Automotive (NASDAQ:MULN) has been among the most beaten-down electric vehicle (EV) stocks in recent years. Indeed, any time a given company needs to take on multiple reverse splits to remain listed, investors take notice. From a high of more than $300,000 per share (split adjusted, of course), MULN stock now trades at around $7 apiece. Thus, the stock’s price movement from these levels doesn’t really matter for investors who bought in recent years (the stock is down 99.99% from its highs — that’s hard to do).
That said, the stock is up a little over 1% today on news that Bollinger Motors, a company majority-owned by Mullen, chose LaFontaine Automotive Group as the first authorized dealer for its commercial EVs.
LaFontaine has two locations in Michigan, in Lansing and Farmington Hills, and investors will be eager to see how the company’s authorized dealership model plays out. Let’s dive into what investors in MULN stock may want to watch moving forward.
MULN Stock Moves Higher on Announcement
Bollinger Motors has focused on developing an all-electric Class 4 commercial truck, with its B4 model touted for its safety. The company has developed a unique chassis to protect a massive 800-volt battery and is at the point where Bollinger is searching for partners to bring its trucks to market.
This deal could certainly be intriguing to watch for existing investors insofar as it’s a step in the right direction to commercializing its Class 4 trucks. Of course, sales aren’t expected to take place until the second half of the year, so there won’t be much to see for the next few months. But the fact that there’s a dealership agreement in place is a bullish announcement for the company.
Of course, I’ve continued to argue that MULN stock remains far too dilutive and fundamentally troubled to be worth considering, even at these levels. That said, maybe some bargain investors looking to dumpster dive for deep value may want to take a shot here following the news.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris MacDonald 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.
