Mullen Automotive (MULN) is surging today on leasing news regarding its Class 1 EV cargo van. Named the Mullen ONE, this electric van is available for lease on the popular EV-sharing platform Turo. According to a statement released today by Mullen, it will first be listed for rental in Jacksonville, Florida, as a pilot program to assess demand for the vehicle. While Mullen also plans to launch a similar program in Baltimore, Maryland, no specific date has been provided.
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What’s Happening With Mullen Stock Today?
After a week of little to no price action, MULN stock has been rising steadily throughout the day. As of this writing, shares are up 33%, although they dipped slightly from early trading momentum. Mullen’s current trajectory suggests it will continue rising throughout the day. However, the stock still has a lot of ground to make up after falling 87% over the past year.
For years, Mullen has stayed in the spotlight mostly because of its meme stock status. But recently, retail investors seem to have lost interest, and the company hasn’t reported many growth-driving catalysts. Getting cars on the road has been one of Mullen’s key challenges, but now it seems to finally be making progress on that front.
In today’s statement, Mullen CEO David Michery described the Jacksonville pilot program as a “gateway of opportunity” for businesses to experience the new Class 1 EV cargo van. This indicates that he sees it as having commercial applications. However, if Mullen wants to penetrate this market, it will have to compete with stronger companies such as Rivian (RIVN), which will likely be difficult.
Is Mullen Stock a Buy, Sell or Hold?
As no Wall Street analysts currently follow Mullen stock, it is hard to properly assess which rating it deserves based on expert opinions. That said, the TipRanks Technical Analysis tool suggests a Sell signal for a one-day period based on overall bearish sentiment.
Mullen is facing considerable challenges as it maneuvers to keep pace with larger rivals in a highly competitive market. Until it can rise above the penny stock line and stay there, it will likely be hard for investors to approach it with confidence.
