MULN Stock Alert: Why Is Mullen Up 5% Today? thumbnail

MULN Stock Alert: Why Is Mullen Up 5% Today?

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MULN stock - MULN Stock Alert: Why Is Mullen Up 5% Today?

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Mullen Automotive’s (NASDAQ:MULN) stock is up by about 5% on a variety of news. First, the October consumer price index (CPI) report came in lower than expected, up 7.7% year-over-year (YOY) and 0.4% month-over-month (MOM). Analysts were expecting a YOY increase of 7.9% and a MOM increase of 0.6%. This has lifted up stocks across the board, with the S&P 500 up over 4% today.

Second, Mullen announced that majority-owned Bollinger Motors has selected Our Next Energy (ONE) as its “modular, linkable Aries battery pack” supplier for electric vehicles (EVs). As part of the announcement, Bollinger will halt the development of in-house batteries and advance its “fleet delivery dates closer.”

“We are pleased to provide Bollinger commercial vehicles with industry-leading range, using our Aries LFP battery platform. The Aries LFP chemistry contains no nickel and cobalt, offering superior durability and daily charging up to 100% without compromise,” said ONE CEO Mujeeb Ijaz.

MULN Stock: Why Is Mullen Up 5% Today?

The battery packs will be built in the U.S. and Michigan. The first vehicle to be equipped with these batteries will be the Class 4 Chassis Cab, which can hold one or two battery packs depending on consumer preference. Bollinger’s production with these battery packs is slated to begin in late 2023.

Meanwhile, Mullen CEO David Michery has his eyes set on the U.S. military as a potential customer. He believes that the B1 and B2 models are suited for war terrain, which should pique military interest. In addition, the recently acquired Electric Last Mile Solutions facility was previously used to build Hummers in the past, which are seen as rugged vehicles fit for rough conditions. Ultimately, Michery seeks to market the B1 as both a commercial and military vehicle, similar to the Hummer H1.

But that’s not all. Yesterday, Mullen announced that it had selected dealership Newgate Motor Group as its sales and distribution agent for the I-GO in Ireland and the United Kingdom. Mullen also noted that it will enter into an agreement with Newgate to have the dealership purchase 500 I-GOs per year. Newgate will first purchase I-GOs for “vehicle demonstrations” on Dec. 20.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.