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Could a turnaround moment be in store for the California-based electric vehicle (EV) maker Mullen Automotive (NASDAQ:MULN)? It’s possible, because an order from a group of dealers and an opportunity to delve into EV infrastructure could propel MULN stock much higher in 2023.
Conditions have certainly not been favorable for Mullen Automotive this year. In a highly competitive field of luxury electric vehicles, Mullen has faced persistently high inflation and the threat of a looming recession.
As we will see, Mullen Automotive shareholders have recently suffered severe financial losses. On the other hand, there is hope for a quick recovery next year, as Mullen has just secured a few notable deals.
What’s going on with MULN stock?
I hate to be the bearer of bad news, but MULN shares are firmly in penny-stock territory now. Mullen Automotive shares were worth more than $5 at the start of 2022, but lately have been trading for less than 40 cents each.
Will the situation improve in 2023? It’s hard to say for sure, but there is evidence that Mullen Automotive could demonstrate growth in the utility vehicle market.
Randy Marion Automotive Group () has just become the first commercial partner of Mullen Automotive. That’s a big deal, because RMA is “one of the largest and most respected commercial vehicle dealership groups in the United States.”
This is where it gets even better: a division of RMA has agreed to purchase 6,000 Class 1 utility vans from Mullen Automotive. Mullen’s deal with RMA is worth around $200 million, so we’re talking about a major revenue stream here.
Additionally, RMA CEO Randy Marion said he has “many customers looking to me for products for their businesses.” Without a doubt, Mullen Automotive is happy to meet the demand for commercial electric vehicles.
Mullen Automotive ventures into electric vehicle infrastructure
You might think of Mullen Automotive as a company that sells electric vehicles, and that’s certainly accurate. Still, Mullen clearly has broader ambitions as the automaker unveiled a partnership with the electric vehicle charging solution provider. Global Loop.
It is a collaboration with great ambitions. Together, the two companies “will offer a complete solution for businesses, municipalities and residential EV drivers looking to deploy seamless and reliable EV charging stations.”
The new service is called Mullen EV Charging Network Powered by Loop. It is described as a turnkey solution for customers. Additionally, the service would include “everything from site assessment and design to installation and ongoing operation”, as well as “fast charging capabilities and smart charging technology”.
Mullen Automotive and Loop Global will also collaborate on what is called the Loop Impact Fund. Through this, eligible customers will receive assistance in financing and operating available EV charging infrastructure. So it looks like Mullen Automotive could be much more than a luxury electric vehicle maker in the near future.
Is MULN stock a buy?
Mullen Automotive investors could certainly use positive catalysts now. Hopefully the deals with RMA and Loop Global will give MULN stock a boost next year.
Forward-looking investors can anticipate the positive impact of these partnerships with a small investment in Mullen Automotive. Stocks are definitely a buy in my book. So, feel free to take a small but confident stance today.
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As of the date of publication, David Moadel had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.