Mullen Automotive vs. Hyzon Motors: Which EV Stock is a Better Buy?

: MULN | Mullen Automotive Inc. News, Ratings, and Charts

MULN – In this article I’ll analyze and compare Mullen Automotive (MULN) and Hyzon Motors (HYZN) to determine which EV stock is a better buy.

Despite the ongoing chip shortages and supply chain disruptions, the electric vehicle (EV) market continues to grow exponentially. Notably, the global EV sales stood at 603,000 in January 2022, representing an 87% year-over-year increase, with a market share of 10% for January 2022.

Furthermore, rising demand for EVs and favorable government policies should enable the global EV industry to grow at a CAGR of 22.6% between 2020 and 2027, reaching $802.81 billion in the terminal year. Consequently, EV manufacturers should benefit from the industry’s tailwinds.

Keeping that in mind, today, I’ll analyze and compare two EV stocks, Mullen Automotive, Inc. (MULN) and Hyzon Motors Inc. (HYZN), to determine which one presents a better buying opportunity.

MULN is a development stage EV company that manufactures and distributes EVs. It also owns a digital platform known as CarHub that provides AI-powered solutions for buying, selling, and owning a car. HYZN produces hydrogen-powered commercial vehicles and fuel cell systems. The company produces medium and heavy-duty trucks and buses. 

Year-To-Date (YTD), shares of Mullen Automotive have dipped 55%, and HYZN has decreased 1.7% over the same period.  

Recent Developments 

On February 7th, Mullen Automotive declared that it had raised additional cash of $4 million to strengthen its liquidity position by combining the initial drawdown of $2.5 million under a $30 million equity line from Esousa and debt financing from current shareholders. The company has already got about $40 million under its EV program. 

On February 15th, Morgan Stanley analyst Courtney Yakavonis initiated coverage of Hyzon Motors. The analyst believes that the company is positioned to capitalize on the adoption of hydrogen fuel cell trucks, but the competition is “fierce.” The firm rated HYZN at “Equal-Weight” with a price target of $7.    

Recent Financial Performance 

On February 14th, Mullen Automotive released a 10-Q filing for the quarter ended December 31st, 2021. The company hasn’t made any material revenues to date because it is still in the development stage.

When it comes to expenses, Mullen’s General & Administrative expenses stood at $12.9 million in the three months ended December 31, 2021, up 336.93% year-over-year because of increases in professional services, marketing, and payroll-related expenses. Its Research and Development costs totaled $1.16 million compared to $0.52 million in the fourth quarter of 2020. As a result, the company’s net loss increased to $36.46 million, signifying a massive year-over-year increase of 482.63%. 

Finally, Mullen Automotive ended the year with cash on hand of $0.61 million and total debt of $19.1 million. Even with a newly raised $4 million, its liquidity position remains challenging, especially considering the cash burn rate of $14.71 million as of three months ended December 31st, 2021.

On March 23rd, Hyzon Motors released its fourth-quarter earnings report. In Q4, Hyzon Motors’ total revenue was reported at $5.09 million, substantially missing Wall Street’s consensus by $23.26 million. The lower-than-anticipated revenue was caused by geographic and product mix shifts to Asia. Its net loss rose 140% year-over-year to $32.44 million in Q4. As a result, HYZN’s GAAP EPS has been reported at ($0.12), missing analysts’ estimates by $0.05.

Hyzon’s Adjusted EBITDA came in at ($36.7) million versus ($3.44) million in Q4 2020. It is also important to note that the company plans to deliver up to 300-400 vehicles mainly towards the second half of the year. 

Currently, Wall Street anticipates Hyzon’s EPS to be ($0.08) in the first quarter of 2022. Besides, analysts project HYZN to generate revenue of $4.49 million in the current quarter. 

Bullish‌ ‌Options‌ ‌Bets‌ ‌Placed On MULN Stock 

The open interest levels for May 20th, 2022, $3.00 calls increased notably during the March 25th trading session. According to data provided by Barchart.com, there was a purchase of 5,173 contracts to bring the total to 7,634. It’s a moderate bullish bet, with a transaction dollar value of about $336,000. A buyer of the calls would need MULN stock to rise to $3.65 by the end of May, representing an upside potential of about 55% from current levels.

Conclusion 

I believe that MULN is a better pick than HYZN at current levels. Although HYZN started delivering its fuel cell vehicles, it reported lower-than-expected top and bottom lines, which may limit its upside potential in the forthcoming weeks. At the same time, any milestone achieved by MULN towards commercialization can be positively reflected in its share price. Finally, options market trades suggest positive market sentiment for MULN stock.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


MULN shares were trading at $2.67 per share on Monday morning, up $0.32 (+13.62%). Year-to-date, MULN has declined -48.95%, versus a -4.43% rise in the benchmark S&P 500 index during the same period.


About the Author: Oleksandr Pylypenko


Oleksandr Pylypenko has more than 5 years of experience as an investment analyst and financial journalist. He has previously been a contributing writer for Seeking Alpha, Talks Market, and Market Realist. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
MULNGet RatingGet RatingGet Rating
HYZNGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Investors: Are You Ready for November?

The S&P 500 (SPY) tumbled to end October. Is that a harbinger of more downside to come? Or will the bull market return with gusto? Investment pro Steve Reitmeister shares his time market views including a preview of his favorite stocks. Get the full story below...

3 Cybersecurity Stocks Defending Against Digital Threats

The demand for cybersecurity solutions is rising as digital threats and sophisticated cyberattacks continue to escalate. Therefore, it might be wise to keep track of cybersecurity stocks, CrowdStrike (CRWD), Palo Alto Networks (PANW), and Fortinet (FTNT), as they offer innovative solutions presenting further growth opportunities. Continue reading...

3 Oil Stocks With High Upside as Global Demand Rebounds

The outlook for oil demand growth appears promising despite economic uncertainties and worldwide supply deficit. Amid this, investing in quality oil stocks Enterprise Products Partners (EPD), Marathon Oil (MRO), and Plains All American Pipeline (PAA) could be ideal as global demand rebounds. Read more...

3 Tech Stocks Under $10 That Could Deliver Big Gains

The technology industry is booming, driven by breakthroughs and significant government investments. Thus, incorporating affordable tech stocks, Sprinklr (CXM), Sabre Corporation (SABR), and Cricut (CRCT) into your portfolio provides an accessible entry point to capitalize on the industry’s growth. Read more…

2 Concerns for Investors in October

The S&P 500 (SPY) may be touching all time highs...but recent action points to concerns on 2 fronts: inflation and earnings. Investment veteran Steve Reitmeister shares his views on these 2 timely topics along with a preview of his top stocks to buy now.

Read More Stories

More Mullen Automotive Inc. (MULN) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All MULN News