US electric car company Mullen Automotive (MULN) has been in the news since its shares hit the markets in November 2021. The race has been volatile, with a series of headwinds and tailwinds in the period since. its Nasdaq debut.
The company’s next-generation solid-state polymer battery technology, its hybrid retail model, the Mullen FIVE EV crossover, and the promotion of former Tesla executive John Taylor to senior vice president global manufacturing and strategic planning acted as tailwinds for Bouillon Mullen.
On the other hand, investors’ perception of the stock as a lucrative short-term instrument has seen its price decline.
Let’s take a look at the company’s financial performance in the fourth quarter of 2021 and analysis of MULN shares based on technical indicators. We will also look at the factors that may move the stock forward to determine if Mullen Automotive stock is a buy, sell or hold.
Market Analysis: Mullen Automotive Stock Performance So Far
The shares were trading on the Nasdaq at $2.65 on April 7. On November 5, they were trading at $12.99.
MULN EV stock has been steadily declining, plunging 76.9% since its debut on April 5. In contrast, the Nasdaq, on which the shares are traded, fell 9% over the same period.
Fundamental analysis: Q4 2021 results
In order to understand the financial health of the company, let’s take a look at the latest earnings release covering the fourth quarter ended December 31, 2021.
The company reported a net loss of $36.46 million, compared to $4.99 million the previous year. Net loss per share widened to $2.09 from $0.98. The operating loss was $14.05 million, compared to a loss of $3.47 million for the same quarter a year earlier.
Technical analysis of the Mullen Automotive stock
At the time of writing (April 6th), according to TradingView, the Relative Strength Index (RSI) points to “neutral” at 54.38 over a one-month period (as of April 5th). A stock’s RSI ranges between zero and 100. An RSI value above 70 is considered “overbought” and “oversold” or “undervalued” when it is below 30.
The stock’s Commodity Channels Index (CCI) (20) rated the stock “neutral,” based on a reading of 15.22. The Commodity Channel Index is a momentum-based oscillator that weights the current average price against the 20-period average average price. A CCI greater than zero indicates that the price is above the historical average. A CCI below zero indicates that the price is below the historical average.
The stock’s moving average convergence divergence (MACD) level (12, 26), pointed to “buy” based on a reading of 0.25, according to data compiled by TradingView. The MACD is a momentum indicator where the reading is obtained by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
What factors can impact future MULN stock?
Mullen Automotive has changed its direction and made progress on crucial technologies in the field of electric vehicles (EV).
How do you feel about MULN?
Vote to see the sentiment of traders!
In April, the company promoted John Taylor, a former Tesla executive, to senior vice president of global manufacturing and strategic planning. Taylor oversaw several factory start-ups and more than 12 vehicle launches in the United States and abroad, while playing a key role in the opening of the Tesla Fremont factory and Tesla manufacturing operations. Model S and the architecture of future electric vehicle projects. With his expertise, Taylor is well positioned to lead Mullen’s manufacturing and strategic planning department.
In late February, Mullen Automotive announced that its testing of solid-state polymer cells demonstrated the potential of a 150 kilowatt-hour battery to deliver more than 600 miles of range. It highlighted an 18-minute DC fast charge that can deliver a range of over 300 miles. The testing was crucial as the solid state polymer batteries are suitable for use in the second generation Mullen FIVE EV Crossover.
In February, the company unveiled its innovative hybrid retail model, the Mullen FIVE EV crossover. In studies, it performed well against two key competitors, the Tesla Model Y and the Ford Mach-E. The study used a monadic online procedure and contained a strong sample of nearly 4,000 respondents.
As for the headwinds, investors may have seen the stock as a way to make money in the short term. According to Ortex, the exchange declared short interest of 8.86 million, rising from 1.93 million, which marked a rally of 358.56%, as of April 6. This level of short interest could position the stock for a short squeeze, leading to volatility.
MULN share price target: analysts’ opinion
According to Mullen Automotive stock price predictions based on Wallet Investor’s algorithm, as of April 7, the stock could plunge to $0.000001 by the end of December 2022. service suggested that the share price could stay at this level until the end of December 2022. end of December 2023 and until 2024, 2025, 2026 and until March 2027.
Gov Capital was also bearish on the stock, predicting it could be worth $0 by April 2023.
When researching Mullen Automotive stock forecasts, it is important to keep in mind that analyst forecasts may be wrong. The projections are based on carrying out fundamental and technical studies of the performance of the MULN electric car fleet. Past performance is not indicative of future prices.
It is important to do your own research. Remember that your decision to trade depends on your attitude towards risk, your market expertise, the allocation of your investment portfolio and your ease with losing money. You should never invest money that you cannot afford to lose.