Despite the odds stacked against electric vehicle (EV) manufacturer Mullen Automotive, the company continues to push forward. Earlier this morning, management announced it would begin road testing its solid-state battery packs designed for its Class 1 electric cargo vans. As well, Mullen continues to deliver vehicles to its enterprise-level clients. Still, skepticism abounds for MULN stock, which has suffered staggering losses this year.
According to the EV maker’s press release, the company successfully completed its solid-state polymer cell to pack integration for the Mullen One Class 1 EV cargo vans. Subsequently, on-vehicle road testing of the underlying technology is scheduled to begin on Dec. 28.
Fundamentally, the solid-state polymer cells should allow for increased safety and efficiency without sacrificing payload. Some of the highlights include a 190-mile estimated range while commanding a 4,881-pound gross vehicle weight rating (GVWR).
“We continue to make significant progress in fulfilling our commitment to providing the next-generation of battery technology to our lineup of EV vehicles, providing a clean and safe alternative to current lithium-ion batteries,” remarked Mullen CEO and Chairman David Michery.
Additionally, Mullen disclosed that it delivered 63 Class 3 vehicles to the Randy Marion Automotive Group (RMA), invoicing the firm for nearly $3.97 million. With the latest tally, the total delivered EVs to RMA comes out to 121, valued at more than $7.5 million.
Extending the positive developments for MULN stock, the aforementioned deliveries to RMA stem from a plan to deliver 150 vehicles total by the end of this year. Further, the total number of vehicles under the RMA purchase order clocks in at 1,000, with the first set of vehicles shipped in September. Notably, Mullen anticipates to deliver the majority of the requested units in 2024.
Nevertheless, the forward progress hasn’t yielded net positive momentum for MULN stock. True, in the past five sessions, shares have gained around 24%. Unfortunately, in the trailing month, MULN is below parity by approximately 40%. Glaringly, Mullen recently initiated its 1-for-100 reverse stock split, its third thus far.
Usually, investors shy away from companies implementing such an action because they view the matter as boosting the stock price without increasing the core value of the issuing company. It’s also a cynical mechanism to stay listed on a major exchange, which can accrue benefits such as enhanced visibility.
