Don’t prematurely assume that Mullen Automotive (NASDAQ:MULN) stock is headed for the market’s junkyard.
The electric vehicle manufacturer is striking back at the critics and even some of the MULN stock short sellers, so a turnaround may be imminent.
I’ll be the first to admit that I’ve been wary of Mullen Automotive as an investable business in the past. Yet, I can’t ignore the evidence that Mullen’s worst days might be in the rear-view mirror now.
The company refuses to capitulate, and there’s not just one, but multiple reasons to consider a small share position in Mullen Automotive today.
Mullen’s ‘Strikingly Different’ EV Charging Truck
In a sure sign that Mullen Automotive isn’t just throwing in the towel, the automaker announced the start of its 2023 “Strikingly Different” EV Tour. This will commence Aug. 20 in Texas.
Half a dozen new EVs will be featured on this tour, including the Mullen FIVE EV Crossover and the Mullen ONE Class 1 Commercial EV Cargo Van.
What might end up being the main feature of this year’s “Strikingly Different” EV Tour, however, is a new vehicle model known as PowerUP.
What’s PowerUP? It’s Mullen Automotive’s mobile EV charging truck. With fast-charging capabilities, PowerUP is ideal for roadside assistance and emergency response scenarios.
Mullen Automotive’s investors really ought to monitor this new vehicle model. If all goes according to plan, Mullen Automotive could be an early mover in an underappreciated EV niche market: fast-charging trucks.
Fighting Back Against MULN Stock Short Sellers
In case that’s not enough positive news, I’ve got more to share with you today. Notably, Mullen Automotive sold 22 electric cargo vans to commercial EV dealer Randy Marion Automotive Group.
I’ll admit, 22 vehicles isn’t a huge number. Still, every purchase order is significant for a growing startup business like Mullen Automotive.
Plus, here’s another important news item pertaining to Mullen Automotive. Recently, the automaker announced a share-buyback program.
This could give MULN stock a major boost in the coming months. According to Mullen Automotive, the company said it “may, until Dec. 31, 2023, purchase up to $25 million in shares of its outstanding common stock.”
Finally, Mullen Automotive is using legal avenues to combat what the company describes as “illegal naked short selling of its common stock.”
To that end, Mullen has retained the services of a law firm with experience prosecuting and collecting fines/damages from entities “who have engaged in such market manipulation schemes.”
This effort, along with share buybacks, could put tremendous upward pressure on MULN stock in 2023’s second half. There could even be a short squeeze that pushes the Mullen Automotive share price back above $1.
Try a Small Position in MULN Stock
There are still risks associate with Mullen Automotive. The automaker will have challenges as it strives to compete in a crowded EV manufacturing field.
There are multiple positive news items that Mullen Automotive’s shareholders can celebrate. Possibly, the most significant recent development pertaining to Mullen Automotive is that the company will fight back against short sellers.
This action against allegedly illegal naked short selling could mark a turning point for Mullen Automotive. So, feel free to give MULN stock a try with a small share position.
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.