$MULN Have It Found A Bottom?
Rock bottom may be on the horizon for Mullen Automotive, Inc. (NASDAQ: MULN). MULN stock plummeted more than 90% from March 31 and is currently trading near its all-time low. That said, the stock is likely to run soon as it appears to have found a bottom. Given that the stock is trading below its cash level and with the company planning to start class-3 vans production in July, MULN stock could be on track to run this week.
MULN Fundamentals
The Bottom Is Here?
As things stand, MULN stock is trading near its all-time low of $0.1550, however, the stock could be extremely undervalued at current levels. Although dilution is proving to be a major risk associated with MULN, the stock is trading below its cash level as the company has a cash position of $135 million or $.38 per share.
This means that MULN has an upside of 140% from current levels to trade at its cash level. In this way, MULN could be extremely undervalued and the stock could see a rebound soon to reflect the company’s true value. Despite the risks, MULN stock could be extremely attractive at current levels since it could have found its bottom.
Class 3 Production
With this in mind, MULN has a major upcoming catalyst that could help the stock run. Thanks to its partnership with NRTC, MULN is set to commence production of its class 3 vehicle at its Tunica, Mississippi facility, and deliveries are expected to begin by next September. Considering that the company has $279 million in purchase orders for its class 1 and 3 vehicles, beginning production could see MULN stock soar as it would be on the right track to start realizing revenues from its class 3 vehicles.
MULN Financials
According to MULN’s Q1 report its assets increased QoQ from $302 million to $402 million and its cash on hand increased from $54 million to $60.3 million. That said, MULN also has $26.7 million in restricted cash hence the $86.7 million balance. On the other hand, MULN’s liabilities decreased QoQ from $145.6 million to $139 million.
In terms of expenses, MULN experienced a sharp increase YoY from $30.45 million to $67.89 million. Despite this, MULN’s net loss decreased from $324.6 million to $116.9 million.
Technical Analysis
MULN stock is in a bearish trend and is trading in a downward channel. Looking at the indicators, the stock is currently below the 200, 50, and 21 MAs which are bearish indications. However, the RSI is oversold at 23 and the MACD is bearish. With the stock trading near its all-time low, MULN could be poised for a run soon – especially with Class 3 vehicles production set to begin in July.
As for the fundamentals, MULN’s plans to start production of its Class 3 vehicles is a major catalyst since it would make the company one step closer to realizing revenues from its Class 3 lineup. In addition, MULN stock could be undervalued at current levels as it is trading way below its cash level. For these reasons, MULN stock could be a bargain at the current PPS as it could rebound soon.
MULN Forecast
As is, MULN stock is near its all-time low and is likely to start rebounding soon as it appears to have reached its bottom. Such a rebound could be due to two main factors, the first of which is the stock trading below its cash level which indicates that the stock may be undervalued. The second factor is the company beginning production of its Class 3 vehicles in July which indicates that MULN is on the right track to start realizing revenues later this year. In light of this, MULN stock could be setting up for a rebound soon which could make the stock a bargain at current levels.
MULN Fundamentals
The Bottom Is Here?
As things stand, MULN stock is trading near its all-time low of $0.1550, however, the stock could be extremely undervalued at current levels. Although dilution is proving to be a major risk associated with MULN, the stock is trading below its cash level as the company has a cash position of $135 million or $.38 per share.
This means that MULN has an upside of 140% from current levels to trade at its cash level. In this way, MULN could be extremely undervalued and the stock could see a rebound soon to reflect the company’s true value. Despite the risks, MULN stock could be extremely attractive at current levels since it could have found its bottom.
Class 3 Production
With this in mind, MULN has a major upcoming catalyst that could help the stock run. Thanks to its partnership with NRTC, MULN is set to commence production of its class 3 vehicle at its Tunica, Mississippi facility, and deliveries are expected to begin by next September. Considering that the company has $279 million in purchase orders for its class 1 and 3 vehicles, beginning production could see MULN stock soar as it would be on the right track to start realizing revenues from its class 3 vehicles.
MULN Financials
According to MULN’s Q1 report its assets increased QoQ from $302 million to $402 million and its cash on hand increased from $54 million to $60.3 million. That said, MULN also has $26.7 million in restricted cash hence the $86.7 million balance. On the other hand, MULN’s liabilities decreased QoQ from $145.6 million to $139 million.
In terms of expenses, MULN experienced a sharp increase YoY from $30.45 million to $67.89 million. Despite this, MULN’s net loss decreased from $324.6 million to $116.9 million.
Technical Analysis
MULN stock is in a bearish trend and is trading in a downward channel. Looking at the indicators, the stock is currently below the 200, 50, and 21 MAs which are bearish indications. However, the RSI is oversold at 23 and the MACD is bearish. With the stock trading near its all-time low, MULN could be poised for a run soon – especially with Class 3 vehicles production set to begin in July.
As for the fundamentals, MULN’s plans to start production of its Class 3 vehicles is a major catalyst since it would make the company one step closer to realizing revenues from its Class 3 lineup. In addition, MULN stock could be undervalued at current levels as it is trading way below its cash level. For these reasons, MULN stock could be a bargain at the current PPS as it could rebound soon.
MULN Forecast
As is, MULN stock is near its all-time low and is likely to start rebounding soon as it appears to have reached its bottom. Such a rebound could be due to two main factors, the first of which is the stock trading below its cash level which indicates that the stock may be undervalued. The second factor is the company beginning production of its Class 3 vehicles in July which indicates that MULN is on the right track to start realizing revenues later this year. In light of this, MULN stock could be setting up for a rebound soon which could make the stock a bargain at current levels.
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