Mullen Automotive has filed a spoofing complaint against UBS Securities, IMC Financial Markets, and Clear Street Markets, alleging a 2-year scheme to manipulate the market price of Mullen shares. The company believes that the spoofing litigation has greater potential to recover damages compared to the previously filed lawsuit focusing on short-selling claims. Mullen is an emerging electric vehicle manufacturer based in Southern California.
Mullen Automotive provides an update on its commercial vehicle production, stating that it is on track to produce 150 Class 3 EV trucks by December 2023 and begin Class 1 EV cargo van production in Q4 2023. The company plans to deliver more than 150 Class 3 vehicles this year and fulfill the remaining 850 trucks in 2024. Additionally, Mullen plans to produce 300 Class 1 EV cargo vans in 2023 and 6,000 in 2024. The production capacity allows Mullen to meet existing purchase orders and accommodate additional customer demand.
Mullen Automotive, an emerging electric vehicle manufacturer, has announced a stock buyback program of up to $25 million in shares of its outstanding common stock. The company believes its stock is significantly undervalued and trading at a discount to its current cash position. The buyback program will be in effect until December 31, 2023, and the shares may be repurchased in the open market or through privately negotiated transactions. The program is seen as an opportunity to deploy capital and return value to shareholders.
Mullen Automotive Inc. has recorded its first-ever revenue with the sale of 22 EV cargo vans to Randy Automotive Group, generating $308,000 in revenue. The company's stock, which had experienced a significant decline in recent days, saw a slight rebound following the announcement. Mullen continues to receive strong interest for its commercial EVs, with the campus van proving to be a popular choice for various closed campus commercial applications.
Canoo and Mullen Automotive, two companies seeking to become major players in the EV industry, have seen their stock prices diverge, with Canoo trading 32% above its year-to-date low and Mullen Automotive trading just above its all-time low. Both companies have strong order books, but face financial challenges due to the need to invest more money to ramp up production and weak balance sheets. As a result, it may be difficult for their stocks to climb in 2023.
Market analysis platform Fintel recently listed the average one-year price target for Mullen Automotive (NASDAQ:MULN) stock as $23.46 per share, which would mean a rise of 15,655% from its current trading price of around 13 cents. However, given the company's struggles, including missed deadlines and economic headwinds, it is highly unlikely that MULN stock will reach anywhere close to $23. Despite some good news, including being on track to fulfill a cargo van delivery order, the company is facing an "increasingly uphill battle" and is in danger of getting delisted from the Nasdaq.
