Electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN) has a new majority-owned subsidiary that was formed through a joint venture. Already, Mullen Automotive has made a couple of positive announcements regarding that subsidiary. Therefore, the extreme drawdown in MULN stock looks overdone, and it’s a good time to start a share position in Mullen Automotive.
It’s no exaggeration to say that Mullen Automotive’s shareholders have been hammered this year. The shares recently traded at around 10 cents apiece. Perhaps, any imagined worst-case scenarios have already been priced into the stock.
Hence, any positive news should get enterprising investors interested in Mullen Automotive. After checking in on the automaker’s recent developments, you’ll surely be tempted to give MULN stock a test-drive today.
Mullen Automotive Subsidiary Scores D.C. Contract
Here’s the lowdown on Mullen Automotive’s new majority-owned subsidiary. It’s called Mullen Advanced Energy Operations (MAEO), and it was formed through a partnership with Global EV Technology, Inc and EV Technologies, LLC. Lawrence Hardge is the founder and chief scientific officer of Global EV Technology Inc; remember that name, as it will be mentioned again soon.
Recently, Mullen Automotive revealed notable progress that MAEO has made in advancing what the company calls Energy Management Module (EMM) technology. Testing of this technology has, according to Mullen Automotive, indicated EV range increases of 60% to 70%.
Furthermore, Mullen Automotive disclosed that MAEO has begun “execution of” a contract with Washington, D.C. This contract is for “installation and field pilot” of EMM technology and is worth $680,000.
Possible Saudi Arabia Contract Could Boost MULN Stock
Now, here’s another piece of news that could move MULN stock higher in 2023. As Eddie Pan reported, Hardge went on Facebook Live to discuss Mullen Automotive’s aforementioned new joint venture.
Pan observed that Hardge teased an “already agreed upon” $10 billion contract with Saudi Arabia. So far, it appears that Mullen Automotive hasn’t confirmed this. Nevertheless, Hardge declared, “This is not what somebody said or what you heard, this is reality. $10 billion contract with Saudi Arabia.”
It’s not a great idea to invest your money based on rumors. Thus, you’ll definitely want to check back for updates on this alleged $10 contract. If it’s real, though, then Mullen Automotive may have a significant revenue source.
Buy MULN Stock While It’s Still Cheap
Mullen Automotive can’t seem to get any respect on Wall Street. If you’re a contrarian trader, this could be a terrific buying opportunity.
It’s encouraging to see Mullen Automotive’s subsidiary advancing EV technology and garnering a contract with America’s capital. If Mullen actually does have a contract with Saudi Arabia, that would definitely be the icing on the cake. So, feel free to give MULN stock a try with a small share position today.
On the date of publication, David Moadel 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.