close
close

MULN Stock Alert: Mullen Signs New Dealer Partner in Boston Area

MULN Stock – MULN Stock Alert: Mullen Signs New Dealer Partner in Boston Area

Source: Ringo Chiu / Shutterstock.com

Although circumstances were not favorable for the emerging electric vehicle (EV) manufacturer Mullen Automobiles (NASDAQ:MUL), the company continues to make every effort. In the latest development, management signed a franchise agreement with Eco Cara car dealership in Boston, Massachusetts that specializes in electric vehicles. Still, there doesn’t seem to be much movement in MULN stock, whose price dropped following this news.

According to I’m looking for Alpha According to the report, Eco Auto is a zero-emission commercial vehicle dealer. As the electric car maker’s newest franchise dealer, “Eco Auto will cover nationwide fleet opportunities for the company’s full line of commercial electric vehicles, with a particular focus on the New England region,” the press release said.

In terms of units, the dealer’s initial orders include ten Mullen One vehicles (which are Class 1 electric delivery trucks) and three Mullen Three vehicles, which are designated as Class 3 electric cab-forward trucks.

According to Mullen CEO David Michery, “The New England region is a major hub in the Northeast for commercial fleet companies and we look forward to tapping into this area.”

It could be a bad sign for MULN shares

On paper, the contract is huge for MULN stock. The Eco Auto order shows that Mullen is confident about staying in business and supporting its electric vehicles. Still, the fact that MULN stock was choppy in the first few hours of Monday’s session could indicate deeper financial worries.

First, the Mullen One has an MSRP of $34,500. The Mullen Three, on the other hand, has an MSRP of $68,500. Even assuming the electric car maker can book the entire price as revenue, the total is only $550,500. That’s not enough to make a difference.

In fiscal year 2023 (ending September), Mullen generated revenue of $370,000 with a net loss of $972.25 million. And as of the quarter ending March 2024, the company posted a loss of approximately $2.06 billion.

The company’s free cash flow was last reported at $54.19 million below par. On the balance sheet, the company has only $22.38 million in cash and cash equivalents. Without more substantial news, the risk of dilution for MULN stock is high, which is likely contributing to its volatility.

On penny stocks and low-volume stocks:With very few exceptions, InvestorPlace does not publish commentary on companies that have a market capitalization of less than $100 million or that trade fewer than 100,000 shares per day. That’s because these “penny stocks” are often a playground for fraudsters and market manipulators. If we ever publish a commentary on a low-volume stock that may be affected by our commentary, we require that InvestorPlace.com writers disclose that fact and warn readers of the risks.

Read more:Penny Stocks – How to profit without being cheated

At the time of publication, Josh Enomoto had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

Josh Enomoto, a former senior economic analyst at Sony Electronics, has helped broker major deals with Fortune Global 500 companies. Over the past few years, he has provided unique, critical insights to the investment markets as well as various other industries such as legal, construction management, and healthcare. Tweet him at @EnomotoMedia.