Mullen Automotive (MULN) Stock: Why The Price Surged Over 20%

By Amit Chowdhry ● May 13, 2022
  • The stock price of Mullen Automotive Inc (NASDAQ: MULN) surged by over 20% pre-market today. This is why.

The stock price of Mullen Automotive Inc (NASDAQ: MULN) surged by over 20% pre-market today. Investors are responding positively to the company’s financial results for the second quarter.

These are the highlights:

— Q/Q cash and cash equivalents rose to +$65.2M, driven primarily by the issuance of Mullen’s Series C Preferred Stock at $8.84/share

— Notes payable, current portion fell approximately -10.8% Q/Q to $16.9M

— Total assets rose approximately 138.4% to slightly over +$100M, driven mainly by financing activities

— Stockholders’ equity rose favorably Q/Q from a deficit of -$10.5M to a surplus of +$52.6M

— Subsequent to the period ended March 31, 2022, Mullen Automotive Inc. entered into an agreement with Thurner Design to develop the Mullen FIVE RS, a high-performance EV sport crossover vehicle featuring close to 1,100 HP, 0-60 mph in 1.95 seconds, and a top speed of 200 mph

— Between late April and early May 2022 Mullen Automotive received an aggregate of $15M from the exercise of the CEOcast equity line of credit in exchange for warrants to acquire common stock. CEOcast has exercised its warrants for 12.7M common shares extinguishing this credit facility.

In May 2022, Mullen had signed a proposal with Thurner Design for the vehicle development of the Mullen FIVE RS, a high-performance EV sport crossover vehicle featuring close to 1,100 HP, 0-60 mph in just 1.95 seconds, and 200 mph top speed. And the proposal includes two phases: 1) design, surfacing and design support, and 2) visualization and high imaging. The Thurner Design team is responsible for shaping and directing designs and brands like Rolls-Royce Motorcars, Bentley Motors, Bugatti, Porsche, Lamborghini, Aston Martin, and Mullen Automotive. 

Mullen FIVE reservations increased substantially in the March 31 ending quarter and more than doubled the volume attained in the last quarter of 2021, which included the world debut of the Mullen FIVE at the LA International Auto Show in November 2021. And reservation progress continues to build and shows strong consumer interest. 

KEY QUOTE:

“We have made significant progress during the second quarter and have demonstrated significant finance progress for moving forward. Our balance sheet continues to improve and our EV programs are all moving forward, including the start of the Mullen FIVE RS program.”

— David Michery, CEO and chairman of Mullen Automotive

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.