- MULN stock rose more than 3.5% on Thursday.
- CEO Michery says Mullen is differentiates itself by launching vehicles that are profitable on day one.
- Mullen Automotive stock has advanced nearly 8% this week but remains down 49% YTD.
- The EV company received its first order from the Dominican Republic this week.
Mullen Automotive (MULN) stock is attempting a turnaround of sorts this week. After finishing its first month of 2024, MULN stock closed on Thursday down 49% for the year, but this week the electric vehicle (EV) stock has risen 7.7%. Could this finally be the turning point that shareholders have been waiting for?
The S&P 500 has gained a little over 0.3% so far this week, so by comparison Mullen stock is exceeding expectations for once. It would appear that the major sell-off seen in January is at the least taking a rest. Mullen has not been diluting the share count since last Summer, but certain investors continue to hold warrants that can be traded for common shares in the future. This latter consideration has put downward pressure on MULN stock since the reverse stock split in December.
The S&P 500 saw its futures rise half a percentage point late Thursday after earnings results from Meta Platforms (META), owner of Facebook and Instagram, rose 15%, while the same from Amazon (AMZN) pushed that mega cap up 7%.
Mullen Automotive stock news: Michery gazes toward Caribbean
Mullen CEO David Michery was out with another press release on Thursday touting his company’s strategy. The besieged founder and CEO, who has received criticism for near constant shareholder dilution over the past few years, extolled Mullen’s performance since selling its first wave of vehicles in late 2023.
“While many of the OEMs and new EV companies have launched their EVs with significant losses, Mullen is out-of-the-gate with a positive gross profit margin per vehicle,” Michery gloated. “EV growth has slowed in the retail segment [globally] but continues to increase across the commercial and fleet segments, where we now have a strong vehicle lineup in the market.”
Michery announced that Mullen has invoiced its distributors for $17.3 million so far since inking its first sales agreement last September. This is a small figure by automotive OEM standards, but Mullen does appear to be growing its list of customers.
On Tuesday, Mullen announced it had sent 20 of its CAMPUS vehicles to Grupo Caval in the Dominican Republic. Grupo Caval operates a series of Electric Motors dealerships and has automotive industry relationships throughout the Caribbean. Mullen believes this partnership will allow it to expand throughout the region in the future.
Similar to the Mullen ONE last-mile delivery van, the Mullen CAMPUS model is a delivery van for “ low-speed, closed-campus use”. The model has been received with success by several college campuses and a utility corporation in the US.
S&P 500 FAQs
The S&P 500 is a widely followed stock price index which measures the performance of 500 publicly owned companies, and is seen as a broad measure of the US stock market. Each company’s influence on the computation of the index is weighted based on market capitalization. This is calculated by multiplying the number of publicly traded shares of the company by the share price. The S&P 500 index has achieved impressive returns – $1.00 invested in 1970 would have yielded a return of almost $192.00 in 2022. The average annual return since its inception in 1957 has been 11.9%.
Companies are selected by committee, unlike some other indexes where they are included based on set rules. Still, they must meet certain eligibility criteria, the most important of which is market capitalization, which must be greater than or equal to $12.7 billion. Other criteria include liquidity, domicile, public float, sector, financial viability, length of time publicly traded, and representation of the industries in the economy of the United States. The nine largest companies in the index account for 27.8% of the market capitalization of the index.
There are a number of ways to trade the S&P 500. Most retail brokers and spread betting platforms allow traders to use Contracts for Difference (CFD) to place bets on the direction of the price. In addition, that can buy into Index, Mutual and Exchange Traded Funds (ETF) that track the price of the S&P 500. The most liquid of the ETFs is State Street Corporation’s SPY. The Chicago Mercantile Exchange (CME) offers futures contracts in the index and the Chicago Board of Options (CMOE) offers options as well as ETFs, inverse ETFs and leveraged ETFs.
Many different factors drive the S&P 500 but mainly it is the aggregate performance of the component companies revealed in their quarterly and annual company earnings reports. US and global macroeconomic data also contributes as it impacts on investor sentiment, which if positive drives gains. The level of interest rates, set by the Federal Reserve (Fed), also influences the S&P 500 as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.
Mullen stock forecast
Mullen stock has been faltering since its post-reverse-split rally ended on January 10. That downtrend bottomed on January 24 at $6.36. MULN stock closed up 3.56% on Thursday at $7.27 and hasn’t reached a new lower low in six sessions. For such a moribund stock, this is actually saying something.
Notably, Mullen stock has also resisted settling below the December 21 low of $6.95. This would seem to show that there is at least some appetite to buy shares at this current price level. The Moving Average Convergence Divergence (MACD) indicator also has just barely crossed over in a bullish fashion on Thursday, which normally predates a coming rally. Long-time traders will wait for MULN stock to break above the 20-day Simple Moving Average (SMA), currently at $9.68, before going long.
MULN daily stock chart
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