- Mullen Automotive (NASDAQ:MULN) stock is on the cloud line after a spate of positive announcements.
- Shares soared almost 20% in a single day, thanks to the company and Linghang Guochang Group extending their partnership on solid-state battery technology.
- It is better to wait for the company to give away its gains before purchasing more shares.
Finding an electric vehicle (EV) stock rallying can be a hard task in the current environment. However, Mullen Automotive (NASDAQ:MULN) stock has done what many thought was the unthinkable, with shares surging almost 20% in a single day thanks to the company and Linghang Guochang Group extending their partnership on solid-state battery technology.
Mullen is currently developing standards that will allow it to design a solid-state polymer battery, a new type of battery technology. This project is pushing the limits of what is possible and will power the second generation of its FIVE EV crossover. It’ll only take 18 minutes to charge. And you’ll get between 600-miles and 800 miles worth of driving with one charge.
Naturally, this is music to the ears of most investors. They are actively looking for reasons to invest in EVs. This was not the case for the better part of two years, with the SPAC space and EV startups contributing to astronomical returns.
In the case of Mullen Automotive, there is cause for genuine excitement. Mullen Automotive makes electric vehicles that are primarily used in the U.S. MULN is unique because it owns a digital platform that facilitates consumer engagement and decision-making and provides emergency point of care solutions for the automotive industry. At the same time, it is also working on battery technology.
Why Is MULN Stock Doing Well?
The company is doing well and developing a mid-sized sport utility vehicle called the Mullen Five. The company has filed for more than 120 patents in 24 countries, and we can expect them to continue going from strength to strength.
Electric vans are in development for some time now and are part of the company’s sustainability initiative. They provide an eco-friendly way to make cross-town deliveries, positively impacting the stock in the future. They are set to debut in second quarter 2022.
In addition, the company has announced the start of construction of its new battery plant in Monrovia, California. Mullen is ensuring that its Monrovia facility will be able to accommodate the production of battery packs for their vehicles soon. Therefore, this is also an exciting development.
Finally, Mullen Automotive is looking to obtain an Advanced Technology Vehicles Manufacturing (ATVM) loan. This subsidy from the government will aid the company in pursuing its ONE EV Cargo van program. The company applied for this loan on April 29th, which is currently awaiting approval from the Department of Energy.
Wait This One Out
Undoubtedly, MULN stock has done well in the last few weeks. And the company deserves credit for giving investors a reason to invest in the company. However, we are still in a bearish market. The broader markets are not doing well. And there is no indication that it will change anytime soon.
Therefore, you can expect MULN stock to quickly give away the gains amassed in the last few weeks. Although it’s an interesting EV company, other tech stocks are trading at a discount that are vying for your attention.
On the publication date, Faizan Farooque 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.