MULN Stock: Don’t Get Tempted by This Stock’s Low Price

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

MULN – Electric vehicle company Mullen Automotive (MULN) has lost more than 90% this year and is currently trading at lower than 50 cents. However, it might not be wise to get tempted by the low price and invest in the stock due to its weak fundamentals. Read on….

Automotive company Mullen Automotive, Inc. (MULN) distributes and sells electric vehicles (EVs). The company also operates CarHub, a digital platform that leverages artificial intelligence to offer an interactive solution for buying, selling, and owning a car.

On October 19, MULN announced that the U.S. Bankruptcy Court approved its acquisition of EV company Electric Last Mile Solutions’ (ELMS) assets on October 13 in an all-cash purchase. MULN is expected to acquire ELMS’ manufacturing plant, inventory, and intellectual property.

The stock has declined 93.3% year-to-date and 20.5% over the past month to close its last trading session at $0.35. While MULN has gained 51.4% over the past five days, it is still trading below its 50-day and 200-day Moving averages of $0.51 and $1.44, respectively.

Here are the factors that could affect MULN’s performance in the near term:

Insider Sale

On September 22, MULN’s CEO David Michery sold 750,000 shares at an average price of 40 cents per share. This year, he sold shares on seven occasions starting on January 18, bringing the total sold shares to 2.53 million. The CEO’s actions on MULN could mean his reduced confidence in the company’s prospects.

Bleak Financials

For the fiscal quarter that ended June 30, MULN’s loss from operations came in at $18.22 million, widening 184.5% year-over-year. Its net loss increased 289.9% from the prior-year quarter to $59.47 million. Its net loss per share came in at $0.16.

Poor Profitability

MULN’s trailing-12-month ROTC of a negative 618.14% compares to the industry average of 6.79%. Its trailing-12-month ROA of a negative 169.94% compares to the industry average of 5.14%.

POWR Ratings Reflect Bleak Prospects

MULN’s POWR Ratings reflect this bleak outlook. The stock has an overall F rating, equating to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. MULN has a Value grade of F, in sync with the stock’s trailing-12-month Price/Book multiple of 9.12, which is 385.6% higher than the industry average of 1.88.

The stock also has a D grade for Quality, consistent with its poor profitability.

In the 65-stock Auto & Vehicle Manufacturers industry, it is ranked #57. The industry is rated D.

Click here to see the additional POWR Ratings for MULN (Growth, Momentum, Stability, and Sentiment).

View all the top stocks in the Auto & Vehicle Manufacturers industry here.

Bottom Line

The company’s CEO frequently selling its stock might make investors anxious. Moreover, its bleak bottom-line performance is concerning. Also, the stock is trading below its moving averages, signaling a downtrend. Hence, it might be best avoided now.

How Does Mullen Automotive, Inc. (MULN) Stack Up Against its Peers?

While MULN has an overall POWR Rating of F, one might consider looking at its industry peers, Jardine Cycle & Carriage Limited (JCYGY) and Subaru Corporation (FUJHY), which have an overall A (Strong Buy) rating, and Suzuki Motor Corporation (SZKMY) and Renault SA (RNLSY), which have an overall B (Buy) rating.

MULN shares rose $0.00 (+0.83%) in premarket trading Friday. Year-to-date, MULN has declined -93.31%, versus a -22.17% rise in the benchmark S&P 500 index during the same period.

About the Author: Anushka Dutta

Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research. More...

More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
MULNGet RatingGet RatingGet Rating
JCYGYGet RatingGet RatingGet Rating
FUJHYGet RatingGet RatingGet Rating
SZKMYGet RatingGet RatingGet Rating
RNLSYGet RatingGet RatingGet Rating

Most Popular Stories on

Is This REALLY a Bull Market?

The S&P 500 (SPY) keeps making record highs...but does that mean that market conditions are truly bullish? 44 year investment veteran shines a light on how hollow recent gains are as they are only accruing to a handful of stocks with most investors searching high and low for stock market gains. Read on for more...

Unveiling Adobe (ADBE) Q2 Earnings: What Lies Ahead for Investors?

Software giant Adobe Inc. (ADBE) has released its second-quarter earnings, revealing double-digit growth in both revenue and profits. Yet, concerns arise around the complexities of navigating growth in the face of advancing AI technologies. Let’s analyze ADBE’s recent performance and assess key fundamentals to uncover what lies ahead for investors…

3 AI Stocks to Invest in for the Next Technological Revolution

The AI market is experiencing a significant growth trajectory, driven by widespread application across various industries. Hence, it could be wise to invest in top AI stocks, Alphabet (GOOGL), Meta Platforms (META), and Alibaba Group Holding (BABA) for the next technological revolution. Read more...

Analyzing Broadcom’s (AVGO) Q2 Earnings: Worth Investing?

Driven by a surge in demand for its AI products, Broadcom (AVGO) reported robust earnings in its latest quarterly results, exceeding expectations on both top and bottom lines. However, is the stock’s recent announcement of a 10-for-1 stock split worth investing in? Keep reading to find out…

Bullish or Bearish Stock Set Up?

The S&P 500 (SPY) record highs sounds pretty darn bullish on the surface. Yet as we dig below the surface there are some curious signals that point more Risk Off. This is especially true as we come into the next Fed meeting after a round of data that points to inflation still being too high...only further delaying the first rate cut. What does this all mean for stocks from here? Steve Reitmeister offers his latest views on the market outlook along with a preview of his top picks to stay on step ahead of the market. Read on for more...

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