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Will expanded Mullen MULN fare well in competitive EV market?

By David Burrows


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194.55 USD
-0.49 -0.250%
US Tech 100
11963.6 USD
-56.2 -0.470%

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Mullen new model launch. Photo: Getty
Mullen Automotive has seen its share price plummet this year. Photo: Getty

Early last month, Mullen Automotive announced the acquisition of a 60% stake in Bollinger Motors for $148.2m in cash and stock.

At the time, David Michery, CEO and chairman of Mullen Automotive assured investors: “All cash and stock required to close the Bollinger transaction (on 7 Sept 2022), has been funded or placed in escrow as required by the transaction documents.

“We are excited about the opportunities this acquisition brings and look forward to updating our shareholders with the positive outcomes resulting from this transaction,” Michery said.

Later the same month, Mullen Automotive emerged as the leading bidder for the assets of bankrupt competitor Electric Last Mile Solutions (ELM).

Mullen Automotive has now completed the purchase of  bankrupt Electric Last Mile Solutions (ELMS) and its assets, including the plant in Mishawaka, Indiana.

Mullen received approval from the US Bankruptcy Court on 13 October  to acquire the EV company’s assets in a $240m cash transaction.

Mullen says the former ELMS plant in Indiana will provide it with the capability to produce up to 50,000 vehicles per year.

Significantly, the deal will accelerate the launch of the Mullen Five crossover, Bollinger B1 SUV and Bollinger B2 pickup by more than a year – according to Mullen.

The ambition for Mullen is to develop a significant foothold in what is still an evolving EV sector. Mullen only becoming a publicly-traded company on the NASDAQ in November 2021. 

Nasdaq 100 chart

Via acquisition it hopes to grow the business and compete more effectively with larger established names in the EV space such as Tesla (TSLA) and Mercedes Benz.  


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While deals like Bollinger Motors and ELM may help boost Mullen’s ability to bring sufficient and increasing number of EV vehicles to market, it is a bold strategy that relies on heavy investment turning potential into profit.

In a recessionary environment there is inevitably concern that vehicle sales do not accelerate at the desired rate and the business struggles to produce positive numbers.

So far, Mullen Automotive’s acquisitions and the CEO’s promises of “positive outcomes” have not seen any bounce in share price.

Just under a year ago (November 2021) the share price was arounnd the $13 level;  now it is trading at around $0.36 – with recent acquisitions making no difference to the share valuation.  

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Make or break for Mullen Automotive?

Marketbeat stresses that Mullen Automotive is gearing up for production of its flagship FIVE SUV crossover which could be the next big thing in the EV world.

“Its cars are not only attractive but fast and it has its fingers in more than one market including sports cars, final mile delivery, and battery technology. The caveat is that all too many EV start-ups have been in this position over the past few years and very few of them are making cars today”.

Essentially, Marketbeat is suggesting an investment in Mullen Automotive is speculation on production and battery technology that may not pay off.

It adds that investors can arguably pick up a chunk of the stock on the cheap. The reason being the risk involved – Mullen Automotive could be another flash in the pan on the road to electrification or it could be the answer to the EV market.

Tesla (TSLA) share price chart

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