Get All Access for $5/mo

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

By Anushka Dutta

This story originally appeared on StockNews - StockNews

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.


The post MULN Stock: Don't Get Tempted by This Stock's Low Price appeared first on

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Data & Recovery

Use This Code to Get 1TB of Cloud Storage for $120

Koofr Cloud Storage makes backing up and sharing work files a safer and easier process.


Get Easy Access to Fun Summaries of Non-fiction Bestsellers with This $60 Subscription

Headway lets users gain key ideas and insights from best-selling works of non-fiction.

Business News

Wells Fargo Reportedly Fired More Than a Dozen Employees for Faking Keyboard Activity

The bank told Bloomberg that it "does not tolerate unethical behavior."


Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.