At the CES 2024 exhibition held from 9 to 12 January 2024 in Las Vegas, Mullen Automotive Inc. (NASDAQ: MULN) unveiled its new electric crossover, the Mullen Five RS, featuring impressive technical specifications: over 1,000 horsepower, acceleration from 0 to 100 km/h in 2 seconds, and a driving range of 520 km.

On 16 January 2024, we looked at the history of Mullen Automotive Inc., examined its financial reports, explored the brand’s model line-up, conducted a technical analysis of the company’s stock, and shared experts’ forecasts for this year.

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Mullen Automotive: company overview

Mullen Automotive Inc. is a US company dedicated to developing and manufacturing electric vehicles, particularly battery electric vehicles (BEV). It is headquartered in Brea, California, with production facilities in Mishawaka, Indiana, and Tunica, Mississippi. The first plant covers 650,000 square feet, and the second has an area of 120,000 square feet. While the brand’s model line-up includes passenger, commercial, and cargo vehicles, preorders are currently available for nearly all the vehicles.

Mullen Automotive’s history

2014 – Mullen Automotive Inc. was incorporated by a group of investors led by David Michery.

2016 – the corporation acquired electric vehicle manufacturer CODA Automotive, gaining access to its technology and production facilities.

2021 – Mullen Automotive Inc. went public on the Nasdaq. The corporation introduced the Mullen FIVE sports utility vehicle with a driving range of 325 miles.

2022 – the company purchased a 60% holding in Bollinger Motors, which manufactures SUVs and pickups. In addition, it acquired electric truck manufacturer Electric Last Mile Solutions.

2023 – Mullen Automotive Inc. announced plans to build a new hi-tech plant to increase the production of electric vehicles to 250,000 units per year.

Mullen Automotive’s products

  • Passenger cars: Mullen FIVE and FIVE RS crossovers, GT and GTRS sports cars, and Bollinger B1 SUV and Bollinger B2 pickup
  • Commercial vehicles: Mullen ONE, Campus, and Mullen-GO vans, Mullen THREE, Bollinger B4 and B5 trucks, and Mullen PowerUP charging truck

According to the company’s website, the market launch of Mullen Campus, THREE, and ONE is scheduled for 2024, and that of Mullen FIVE is planned for 2025.

Mullen Automotive’s technological innovations

Solid-state batteries. Mullen Automotive Inc. is actively developing its solid-state polymer batteries. It is expected to ensure a range of over 600 miles on a full charge and over 300 miles of range delivered in 18 minutes with DC fast charging.

Carbon fibre. Mullen Automotive Inc. applies carbon fibre in the body structure of GT and GTRS models. This light and durable material helps reduce the vehicle's weight and improve its aerodynamics, positively affecting the range.

Software. The company develops AI-based software for its models known as Commercial Pulse. It enables settings updates over the air and remote monitoring of the vehicle’s state and location. The manufacturer can remotely provide clients with new features and solutions, enhancing vehicle safety and efficiency.

Personalisation system. The company has developed a PERSONA system that utilises artificial intelligence to customise driving. The system recognises faces and voices to create a driver’s profile, which is used to customise various vehicle features, such as unlocking the vehicle or adjusting the climate control system, audio system, and navigation.

Mullen FIVE RS development. Horsepower – 1,000 hp, acceleration from 0 to 100 km/h – 2 seconds, and a driving range – 520 km.

The EV market landscape and Mullen’s position

Main EV market trends

According to S&P Global Mobility’s forecast, global sales for new vehicles will reach 13.3 million BEVs in 2024, accounting for 16.2% of global new passenger vehicle sales. For reference, this figure was 9.6 million units in 2023.

As estimated by Yale Environment 360, electric vehicle sales will total 16.7 million units worldwide in 2024, including 9.7 million cars sold in China, 3.4 million in Europe, 1.9 million in the US, and 1.7 million in other regions.

Based on a Reuters analysis, competition in the EV market is intensifying, with large automakers planning to invest over 1.2 trillion USD in this sector through 2030.

Competition in the US BEV market

Let us look at the production volume of the key US BEV manufacturers in 2023: 1.85 million electric vehicles produced by Tesla Inc., 57.2 thousand by Rivian Automotive Inc., 10.1 thousand by Fisker Inc., and 8.4 thousand by Lucid Group Inc.

According to Counterpoint, the distribution of shares in total US BEV sales was as follows in Q2 2023:

  • Tesla Inc. – 59%
  • Hyundai Motor Group – 8.1%
  • General Motors Company – 5.2%
  • Volkswagen AG – 4.8%
  • Mercedes Benz Group AG – 4.6%
  • Ford Motor Company – 4.4%
  • Others – 13.9%

As for the production volume of Mullen Automotive Inc., the company did not provide accurate data. It is only known that the company planned to launch 450 vehicles in 2023. The annual report includes information on deliveries of 241 commercial vehicles.

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Financial performance review of Mullen Automotive

According to the fiscal 2023 report, revenue for the calendar period from October 2022 to September 2023 inclusive was 366 thousand USD, and the net loss increased by 35.98%, reaching 1.01 billion USD or 1,574 USD per share.

Loss-making operations are typical for US BEV manufacturers. From January to September 2023 inclusive, Rivian Automotive Inc. reported a net loss of 3.91 billion USD, Lucid Group Inc. had a net loss of 2.17 billion USD, and Fisker Inc.'s net loss stood at 0.3 billion USD, while Tesla Inc. recorded a net profit of 7.07 billion USD over this period.

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Mullen’s strategic partnerships and collaborations

  • Partnership with Dürr. On 20 December 2021, Mullen Automotive Inc. announced a strategic partnership with Dürr AG, an international automaker specialising in high-tech production systems with extensive expertise in production process automation and digitalisation
  • Partnership with Watergen. On 1 September 2022, Mullen Automotive Inc. reported an agreement with Watergen Inc. to develop water-from-air solutions for EVs. Watergen Inc. is an Israel-based company dominating the global water-from-air equipment market
  • Partnership with Amerit Fleet Solutions. On 23 May 2023, Mullen Automotive Inc. released news about its partnership with Amerit Fleet Solutions, as part of which servicing, repair, and warranty will be provided to Mullen CAMPUS, Mullen ONE, and Mullen THREE commercial vehicles
  • Collaboration with Loop Global. On 14 December 2023, Mullen Automotive Inc. announced partnership with Loop Global Inc., an EV charging software and hardware supplier. The companies intend to deploy and develop a network of charging stations and units

Technical analysis of Mullen Automotive stock

Mullen Automotive Inc. quotes moved within a descending channel since 25 October 2022. It can be assumed that there is still the potential to complete the formation of the Head and Shoulders reversal pattern. To do this, buyers must gain a foothold above the 18.00 USD level, with the pattern target likely to be 47.00 USD.

A rebound of the RSI values from the bullish trend line may signal upward momentum. One of the previous rebounds from this RSI line was observed on 24 October 2023, propelling the automaker’s stock price by over 58%. If the quotes break above the upper boundary of the long-term descending channel and establish themselves above 27.00 USD, this may indicate the end of the downward movement.

A pessimistic scenario for buyers can be a breakout of the 8.00 USD level. Such price behaviour may suggest the cancellation of the reversal pattern and a potential drop to 5.00 USD.

Technical Analysis of Mullen Automotive stock*

Investor sentiment: forecasts and predictions for Mullen Stock in 2024

  • StockInvest analysts gave Mullen Automotive Inc.’s stock a score of −5.2 and a Sell rating
  • Based on the information of the Wallet Investor portal, the 1-year forecast for the automaker’s stock price is 13.16 USD, and the 5-year estimate is 12.72 USD
  • Barrons specialists rated the shares as Sell
  • According to Fintel, the projected stock value may reach 23.46 USD by 27 March 2024

Mullen automotive’s roadmap for 2024 and beyond

  • Production ramp-up. The corporation plans to increase production of the Mullen THREE to 850 units and launch 6,000 Mullen ONE vehicles in 2024
  • Integration of solid-state polymer batteries. Mullen Automotive Inc. intends to complete the testing of solid-state polymer batteries in Mullen ONE vans. The company expects the new batteries to increase the range from 100 miles to 200 miles on one charge

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Conclusion

Mullen Automotive Inc. has a broad model line-up and proprietary production facilities, develops innovative in-house solutions, and collaborates with other companies. Its revenue for fiscal 2023 is significantly lower than net loss. In addition, the intense competition in the EV and BEV market is worth keeping in mind. The company’s future will likely depend on the production scale-up, an increase in the number of corporate clients, and the successful integration of new solutions.

The above analysts’ forecasts are ambiguous, with some experts expecting the automaker’s stock price to rise and others believing that the shares will continue to fall. Technical analysis shows that the stock is following a downtrend. However, if the quotes gain a foothold above 18.00 USD, this will probably signal a potential trend reversal.

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1. What are Mullen Automotive’s key products and innovations?

Mullen Automotive has developed a range of electric vehicles, including cars and utility vehicles. Their innovations often focus on battery technology, autonomous driving features, and sustainable manufacturing processes.

2. How does Mullen Automotive stand out in the EV market?

Mullen Automotive distinguishes itself through unique design, advanced technology integration, and a commitment to sustainability. The company also emphasises the affordability and accessibility of its vehicles to a broad market.

3. What is the market sentiment towards Mullen Automotive's stock?

Opinions among experts are divided. Some believe the stock will continue to decline, while others anticipate a rise in the stock value, reaching a maximum price of 23.46 USD by mid-2024.

4. Can Mullen Automotive maintain its competitive edge in the EV market?

Mullen Automotive's continued investment in research and development, strategic partnerships, and a focus on consumer needs positions the company well to maintain and enhance its competitive edge in the dynamic EV market.

5. What challenges does Mullen Automotive face?

A5: Like any company in a rapidly evolving industry, Mullen Automotive faces challenges such as intense competition, technological changes, and adapting to shifting consumer preferences and regulatory landscapes.


* – Past performance is not a reliable indicator of future results or future performance.

The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.

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