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Mullen Automotive (NASDAQ:MULN) issued a press launch on May 10 that offered buyers with an update on its solid-condition polymer battery testing. MULN inventory initially jumped far more than 7% in pre-sector buying and selling. David Michery, chief executive officer and chairman of Mullen Automotive stated, “I am happy with the original preconditioning outcomes on our good-state polymer battery cell and we’re progressing to the up coming phase of tests with BIC. […] The battery has performed effectively and I’m looking ahead to see finalized screening results from BIC later on this month.” If you are thinking about acquiring on the news, I wouldn’t be so quick to act. Mullen has a lengthy way to go before it’s deserving of your tough-attained cash.
Even so, any time you can trot out constructive information, it makes feeling to do so. You just can’t fault Michery for seeking to let buyers know that its battery screening is progressing properly. This most recent news follows its late-April press release that it is retrofitting its Monrovia, California facility to generate electric powered car or truck (EV) battery packs for the A single EV Cargo Van, 5 EV Crossover, and DragonFLY EV Sportscar.
Anything about Mullen’s presentation points to an EV startup destined for greatness. InvestorPlace contributor GS Early boldly argued that Mullen is the only rationally valued EV maker at the stop of April. At the time, MULN inventory was down 74% calendar year-to-date, suggesting the upside was better than the draw back. It is down 21% because.
In mid-April, I highlighted that Mullen put in just $3.1 million on research and progress in 2021, just 2% of what QuantumScape (NYSE:QS), a leading developer of solid-state lithium batteries, invested. Still, Mullen’s marketplace capitalization is just about 6% of QuantumScape’s $5.06 billion valuation.
Even further, QuantumScape’s battery screening is miles ahead of Mullen’s. The company claimed on May possibly 2 that its 16-layer sound-state cell tests showed that they were able of 500 expenses without having shedding considerable vitality. And finally, Mullen is facing course-action lawsuits that allege it produced quite a few deceptive or outright fake statements about the upcoming of its organization. In spite of the news, Mullen continues to be nothing at all but smoke and mirrors.
MULN stock is hardly around $1 for a explanation. Do not slide for the company’s blatant bait-and-swap trader relations tactic.
On the date of publication, Will Ashworth did not have (either immediately or indirectly) any positions in the securities mentioned in this posting. The thoughts expressed in this posting are these of the author, issue to the InvestorPlace.com Publishing Pointers.