Weakness in
Investors may want to act on that consideration sooner than later. That's because, from a fundamental and operational perspective, MULN is hitting its operational stride. In fact, its potentially transformative acquisition of new assets, a significant decrease in debt, exclusive licensing to market the I-GO last-mile EV in European markets, and strong interest and demand for its FIVE EV Crossover put MULN in its best position ever to create sustainable shareholder value.
An analyst covering MULN is indeed bullish on that proposition, offering a 12-month price target for
Supporting The Bullish Proposition
There's plenty to support that bullish forecast. And more was added after MULN announced eliminating
But more than just a 66% reduction in outstanding debt, the better news is that MULN could soon be a debt-free company. If they can stay true to that mission, that could feasibly happen by the end of next year or sooner. For an emerging EV sector player with several products hitting the pavement and development programs in the late stages, it's a distinction that does more than attract investor interest; it could also send short sellers for cover.
They may want to do so. The accretive updates announced over the past few weeks should positively affect income going forward. And with a well-managed and ambitious company starting to do the right things at the right time, more than just accruing new revenues, they can harness the value inherent to recent deals. All tolled, MULN could transform into an even more impressive EV sector player.
Video Link: https://www.youtube.com/embed/zHWJfzvX3uM
A Big Deal With I-GO
That's already happening. And from an intrinsic perspective alone, plenty supports higher MULN share prices. In fact, a deal made last month adds appreciably to a strengthening product portfolio, with the value from that deal still disconnected from current prices. That one can be a game-changing asset for the company.
Investors were certainly excited; they sent shares higher by over 77% after MULN announced acquiring exclusive sales and marketing rights to sell the I-GO in particular European markets. Considering that the I-GO is described as a "perfect" electric vehicle for urban European markets and knowing that the MULN team is capable of tapping into its value, giving back gains may be leaving considerable value on the table, especially with the I-GO expected to fill a substantial niche last-mile services opportunity in those markets. But here's more good news.
On Wednesday, MULN announced an agreement to appoint
Boasting a short but powerful 96-inch wheelbase, 16.5-kWh battery pack, rear-wheel drive, a curb weight of only 1,753 lbs., an NEDC estimated range of 124 miles per charge, and its ability to easily handle the stop/go and weave in/out typical of narrow European urban streets has made the I-GO a polling favorite as the vehicle choice for both last-mile delivery companies and consumers wanting convenience and value. That's no surprise. The I-GO was specifically built to meet known market needs, designed to get to the customer's door faster and provide affordable in-town EV options while decreasing pollution and congestion levels across
It's attractively priced, too. The I-GO will have a starting price of only
Enhanced Revenue-Generating Opportunities
There's plenty more revenue-generating firepower supporting the bullish sentiment. In addition to I-GO providing MULN with potentially massive new market opportunities, it also extends its brand into other countries while simultaneously allowing them to remain focused on its mission of manufacturing its lineup of impressive EVs in the
By the way, in addition to securing the exclusive sales, distribution, and branding rights for the I-GO in
If so, it will be the start of transforming milestones into catalysts, and MULN scoring several in the past month alone positions the company for a near-term, news-based breakout.
Capitalizing On Near Term Market Opportunities
That's more than likely; it's probable. Paying attention to just those few updates made in October, MULN went from a medium to long-term play to a near-term and compelling value proposition. And recent weakness underscores the opportunity and further exposes a valuation disconnect between share price, portfolio assets, and inherent potential. But as noted, that's not altogether bad news; valuation disconnects reveal investment opportunities, and this recent decline may offer one too good to ignore.
Remember, while there are several smallcap EV companies to choose from, others don't seem to hold the revenue-generating firepower inherent to MULN. Nor have others created an end-to-end ecosystem making "going electric" more accessible than ever. And considering that millions of private-sector companies and public-sector consumers want the types of products Mullen sells and plans to sell, and fortified with an overseas presence, MULN also looks better positioned from a market perspective to monetize its initiatives sooner than its peers.
No surprise, there. Its products are "strikingly different," generating a lot of interest. Its Mullen FIVE EV product family is indeed a welcomed addition to the premium midsized electric-powered sport utility vehicle market. But it has more than great looks. In addition to what's been described as "stunningly designed and engineered," it's manufactured entirely in the
It's also equipped with modern advancements like facial recognition technology, an integrated LED lighting system, voice command, and PERSONA, a personal vehicle assistant controlled via app managing preferences and security modes. That's led to consumer opinions overwhelmingly supportive of the car, placing it among the best in the space and earning competitive respect against
More products are expected to roll out soon. MULN plans to bring its Mullen RS to market in Spring 2023, as well as a lineup of commercial fleet vehicles intending to seize a substantial share of the demand for last-mile delivery vehicles. And part of that market, and others, can be exploited through MULN's controlling interest in
But Mullen isn't only a vehicle manufacturing company; they are a technology company, too, working intensively on developing innovative polymer solid-state battery cell technology.
Battery Technology Solutions Are A Valuation Wild Card
Advancing through its prototype stage, MULN could be on the verge of finalizing an industry-best design to improve electric battery safety and capability by replacing the liquid electrolyte currently used in lithium-ion EV batteries. Trials intend to show that swapping the liquid for a solid-state alternative will significantly improve performance, power, and safety.
Remember that this current multi-billion dollar battery market opportunity is expected to become a trillion-dollar one as early as 2030. As is often the case, best-in-class products earn the lion's share of market rewards. Mullen believes its technology could transform its company into one of the lions, and it's possible. Mullen recently emphasized how its rendition of solid-state batteries offered higher energy density, faster charging time, smaller size, and safety compared to traditional lithium-ion cells. Developing new technologies has led to some partnerships, too.
Mullen is engaged with Hofer Powertrain and DSA to facilitate the manufacturing of components for its electric drive systems and remote OTA capabilities. The company is also working with and supported by ARRK, which provides computer-aided engineering, body in white, battery, closures, interior, chassis, thermal, and infotainment engineering for its EV lineup. They also joined forces with automation company Comau in a strategic alliance to develop a state-of-the-art body shop. That's not all.
They are also working with Dürr, supporting assembly and paint shop technologies, connecting seamlessly with Mullen's fully equipped engineering facility in
There's more to like. Value is also expected to accrue from MULN's desire to acquire an additional factory for Mullen FIVE production and various new programs, which, if consummated, could expedite MULN's mission to become a significant sector player. With gravity pulling shares lower, the accretive value from all the above appears conspicuously absent from MULN's valuation.
A Timely And Actionable Proposition
Thus, knowing that valuations in emerging companies on the heels of transformation can change quickly, the MULN proposition is more than timely; it's actionable. And considering that more accretive news is likely in the queue, taking that action may be better suited for sooner than later consideration. Again, MULN isn't a hype-based proposition; it's substance backed.
Undoubtedly, the sum of MULN's parts is appreciably more potent than a month ago. With enhanced revenue-generating opportunities in its scope, and a team able to seize them, recent weakness simply doesn't match with MULN's strengthening fundamentals. Yes, MULN may have scored EV gold when it acquired exclusivity to the I-GO, and reducing debt can be a game-changer to bottom-line performance. But both are just a part of a much bigger developing story.
And the excellent news on that front is that with several updates expected over the next few weeks, a new chapter may be added to an already bullish value proposition. Better yet, it could spell out ways of taking investors closer to a happy ending.
Disclaimers:
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
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