Mullen Automotive, Inc. (NASDAQ: MULN) stock is up nearly 4% (3.95%) in midday trading on news that the company's first I-GO™ vehicles have arrived in Europe. The I-GO™ is an urban commercial delivery vehicle purposefully designed to meet the space constraints in dense cities throughout Europe. This is becoming a growing need as demand for quick, last-mile delivery grows.
The vehicles are being delivered to the Newgate Motor Group in Ireland and are expected to arrive in early January. This delivery is the first in what the company is projecting to be more based on "a significant uptick in interest and inquiries on the I-GO EV," according to Jim Ring, general manager for Newgate Motor Group.
The Latest in a Series of Newsworthy Events
Shares of MULN stock have been volatile in the last three months based on bullish catalysts. On December 15, the company announced its first purchase order from Randy Marion Isuzu. In addition, the company will be delivering 6,000 of its Class-1 cargo van.
This announcement came on the heels of Mullen announcing a definitive agreement with Loop Global Inc. ("Loop"), a full-service EV charging solution provider, to build the next generation of public and private EV charging technology, infrastructure and network solutions.
Know This Before You Buy
The board of directors is holding a special meeting on Friday, December 23, to vote on a reverse stock split. The effect of a break could see current shareholders receiving one share for every 25 shares they own (I.e., a 1:25 split) at an adjusted stock price that would be 25x the price on the day of the split.
Reverse stock splits have a mostly bearish track record for investors, but in the case of Mullen, the company may have few options. First, the company needs to get its share price over $1 to meet Nasdaq's listing requirements. The downside risk of being delisted is one the board cannot take on when they need to raise capital.
Expect More Volatility
MarketBeat's Thomas Hughes has been all over the Mullen news and advises investors that the current tug-of-war between the bulls and the bears can continue for some time. You can hear Thomas' thoughts in this video. And you can rely on MarketBeat to keep you on top of the news impacting MULN stock and other stocks in your portfolio.