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After a positive news release, Mullen Automotive (Nasdaq: MULN) is trending on social media again. With Mullen Automotive stock down 91% from its highs after going public, it may be time to reconsider MULN stock.

Southern California-based Mullen Auto was a unit of Mullen Technologies until last November. Following a merger with Net Element, Mullen Automotive started trading on the Nasdaq in November.

The emerging EV company is the result of two EV startups, CODA and Mullen Motor. CODA, founded in 2009, was one of two certified EV companies selling cars. The other was Tesla (Nasdaq: TSLA).

On the other hand, Mullen Motors was founded in 2002. As demand for EVs heats up, Mullen Automotive is emerging as a domestic contender.

The company focuses on making EVs here in the U.S. while making it easier to own. With this in mind, Mullen Automotive stock is in penny stock territory after the selloff.

Is now the time to consider buying MULN stock? Below are five things that could send Mullen Automotive stock to the moon.

No. 5 “More EV Sales Each Week Than in 2012”

According to the latest Global Electric Vehicle Outlook, EV sales doubled last year, reaching a record 6.6 million. Not only that, but automakers are selling more EVs each week than in the year 2012.

For one thing, the data shows a clear trend. EV demand is heating up significantly. The number of EVs on the road tripled in the past three years. And it doesn’t look to slowing anytime soon.

In fact, EV makers are struggling to keep up with demand as supply issues strain the industry. For example, Tesla noted critical challenges facing the industry on its recent earnings call, including:

• Chip Shortages
• Supply Interruptions
• Raw Material Costs
• Transportation Costs

Tesla had another record quarter in revenue, vehicle deliveries, and operating profits despite the issues. Mullen Automotive is looking to capitalize on the growing demand with its scalable EV solutions. Mullen is building an ecosystem to support all aspects of owning an electric car.

No. 4 Gas is More Expensive Than Ever

Another reason Mullen Automotive stock could soar is due to record-high gas prices driving more to go electric. According to AAA, average gas prices hit $4.9 today, a new national record.

In comparison, last year, gas prices averaged $3.05, showing a 60% increase YOY.

The rising cost of gas and oil makes purchasing an EV even more attractive. Additionally, encouraging EV buying is critical as nations look to bring down inflation.

For one thing, as gas prices continue inching higher, it slowly eats into the consumer budget. If more is spent on gas, less is being spent on other areas of the economy.

And less spending is bad for economic growth. So, leaders are pushing to build an EV network capable of handling new EVs. For example, the Infrastructure Investment and Jobs Act sets aside $7.5 billion for building a national EV charger network.

Furthermore, the industry receives benefits and incentives such as tax credits to promote adoption.

Keep reading to learn what to expect from Mullen Automotive stock next.

No. 3 Mullen Automotive Stock Joining Russell Indexes

Yesterday, Mullen announced that MULN stock will be joining the Russell indexes. Mullen Automotive stock will be added to the Russell 2000 and Russell 3000 indexes.

• Russell 2000 (RUT): A small-cap stock index comprised the smallest 2,000 stocks in the Russell 3000.
• Russell 3000 (RUA): An index consisting of 3,000 of the largest U.S. companies.

Nonetheless, being added to top performance indicators will help bring more awareness to Mullen Automotive stock.

In fact, CEO David Michery agrees, saying, “I believe that our inclusion in the Russell Indexes will bring Mullen Automotive great visibility within the institutional investment community.”

To explain, David is talking about the “Index Effect.” The theory is when a company is added to an index, the stock outperforms. The idea makes sense as being added to an index can increase exposure to institutions and those tracking them.

Will Mullen Automotive stock see more buying? Below are more reasons to believe so.

Mullen Automotive Stock Forecast: What to Expect From Here

Mullen Automotive stock is down over 90% from its highs after selling off from its initial hype. Then again, many growth stocks have sold off during this time.

With this in mind, Mullen has plans to succeed. The question will be if they can execute and fulfill their promises.

We have often seen EV startups promising to be the next big thing, only to fail to execute. For example, Rivian (Nasdaq: RIVN) cut production due to supply issues. Nikola Motor (Nasdaq: NKLA) collapsed after CEO Trevor Milton was accused of fraud.

I’m not saying the same will happen with Mullen Automotive stock. However, it is a risk to be aware of.

Mullen has a long way to go in catching the competition and proving a reliable contender in the EV space. At the same time, Mullen Automotive stock may fit the script if you are looking for a higher risk, higher reward opportunity.

No matter how you look at it, the EV market is growing rapidly. In particular, consumers need a cost-effective, premium option. This is the gap Mullen is looking to fill.

MULN stock will look cheap at these levels if Mullen can fulfill its plans. That said, getting there will be a bumpy road.

The post Top 5 Things That Could Send Mullen Automotive Stock Higher appeared first on Investment U.

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By: Pete Johnson
Title: Top 5 Things That Could Send Mullen Automotive Stock Higher
Sourced From: investmentu.com/mullen-automotive-stock/
Published Date: Wed, 08 Jun 2022 13:14:30 +0000

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