Mullen Automotive, Inc. (NASDAQ: MULN), an electric vehicle (EV) manufacturer based in Southern California, is making significant strides in the EV market—and its stock price is reflecting the excitement. On Tuesday, during the midday trading session at 12:41 PM EDT, Mullen’s stock surged by a remarkable 63.17%, increasing by $1.0699 to $2.7799. Trading volume reached 32.26 million shares, far surpassing the company’s typical volume of 1.63 million, making it one of the most trending stocks of the day.
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While the market response is impressive, what’s driving this sudden rally? A recent announcement from Mullen Automotive has captured investor attention. Let’s take a closer look at what’s behind the surge, how Mullen’s stock performance compares with broader market indices like the S&P 500, and what the future holds for the company.
Mullen Automotive’s Latest Breakthrough: Turo Rental Partnership
Mullen’s significant stock price movement coincides with a major announcement from the company: the Mullen ONE Class 1 EV cargo van is now available for rental on Turo, the world’s largest vehicle-sharing marketplace. Turo, which allows users to rent out their vehicles for personal or business use, presents an ideal platform for Mullen’s Class 1 EV cargo van, offering businesses a flexible and eco-friendly transportation option.
According to Bradley Shaw, a representative from Parasol Strategic Solutions—one of Turo’s high-level hosts in Florida—the Mullen ONE aligns perfectly with the growing demand for small, efficient cargo vans in urban settings. Shaw noted that businesses in urban areas are looking for nimble and cost-effective solutions that can also support sustainable transport. With the Mullen ONE, businesses can now access an EV cargo van that fits these needs.
The rental program will initially launch in Jacksonville, Florida, with plans to expand to Baltimore, Maryland, shortly thereafter. David Michery, CEO of Mullen Automotive, emphasized that this partnership serves as a gateway for businesses to experience the performance and benefits of Mullen’s commercial EVs firsthand.
This move into vehicle rentals is part of a broader strategy to boost Mullen’s commercial EV lineup, which includes both the Mullen ONE and the Mullen THREE—a Class 3 EV truck designed for last-mile delivery. Both vehicles are fully certified by the U.S. EPA and the California Air Resources Board (CARB), making them eligible for significant rebates and tax incentives.
Mullen’s Year-to-Date (YTD) Stock Performance
Despite the recent surge in stock price, Mullen’s performance so far in 2024 has been a stark contrast. The company’s stock is down a staggering 99.80% year-to-date (YTD), a dramatic drop that highlights the volatility often seen in emerging sectors like electric vehicles. This sharp decline contrasts sharply with the S&P 500, which has gained +25.35% YTD.
While Mullen’s stock has faced significant challenges, the recent developments around Turo and the increasing demand for EVs in the commercial sector could signal a potential turnaround for the company. The success of this rental partnership may help bolster Mullen’s revenue streams and brand visibility, crucial factors in regaining investor confidence.
Analyst Ratings and Market Sentiment
Despite the significant volatility, analysts are showing increasing optimism about Mullen’s future prospects, especially given the recent news. The rental program with Turo is seen as a key opportunity for the company to showcase its EV technology in a market segment where demand for sustainable, compact transportation options is on the rise.
Analysts have been closely watching Mullen’s moves in the EV space, and while the stock’s performance has been a mixed bag, today’s news is certainly expected to draw more attention from institutional investors. The analysts’ consensus ratings can offer insight into how the broader market views Mullen’s potential. These ratings, combined with the company’s strategic partnerships, may serve as indicators of its future growth trajectory.
For more information on Mullen Automotive’s analyst ratings and how they align with the recent announcement, you can view their updated ratings and market assessments here.
Mullen’s EV Lineup: What’s on Offer?
Mullen Automotive isn’t just a stock story; it’s an innovative player in the electric vehicle space. The company designs and manufactures electric vehicles for commercial and industrial markets, focusing on making the next generation of commercial EVs.
Their Mullen ONE is a Class 1 EV cargo van designed to meet the demands of businesses in the logistics, delivery, and small-scale transportation industries. The Mullen ONE is also eligible for government incentives, including the $3,500 rebate through the MOR-EV program in Massachusetts and the $7,500 federal tax incentive, which makes it an appealing choice for commercial fleet owners looking to transition to greener alternatives.
The Mullen THREE, a Class 3 EV truck, is another key part of Mullen’s commercial vehicle lineup. It has already garnered significant attention, having been qualified for a $15,000 incentive under the Massachusetts MOR-EV program and a $45,000 cash rebate through California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program (HVIP).
In addition to the vehicle lineup, Mullen has been ramping up its production capabilities. It began commercial vehicle production at its Tunica, Mississippi plant in August 2023 and has received IRS approval for federal EV tax credits for eligible vehicles. Mullen is also expanding its dealer network, including partnerships with major dealers like Papé Kenworth and Pritchard EV, which will help expand the company’s presence across the U.S.
Conclusion: What’s Next for Mullen Automotive?
Mullen Automotive’s stock price surge is certainly one of the most notable developments in the EV market this week. Whether this uptick is a signal of a broader recovery or simply a temporary spike remains to be seen. However, with its strategic moves in the commercial EV market, including the new Turo rental program and government incentives, Mullen is positioning itself as a promising player in the electric vehicle industry.
While Mullen’s YTD performance has been dismal, the company’s innovations and the growing demand for sustainable transportation solutions could pave the way for a turnaround in 2024. For investors, the next few quarters will be critical in determining whether Mullen can sustain its momentum or if this surge is just a brief flash in the pan.
