Mullen Automotive stock (MULN) is currently experiencing a notable upturn, marked by double-digit gains for the second consecutive trading session. This surge in performance comes as a result of the company’s receipt of a substantial $45,000 subsidy from California for each electric semi-truck it sells.
This particular subsidy holds considerable significance, as it functions as a point-of-sale incentive, effectively reducing the cost of the Mullen THREE electric semi-truck at the time of purchase. Consequently, the potential cost of the vehicle may be reduced to just $17,000, rendering it a far more affordable option for prospective buyers.
The immediate impact of this news was reflected in MULN stock’s impressive 81% rally on Monday, which has persisted into Tuesday with early gains.
The driving force behind the recent surge in Mullen Automotive stock lies in the approval by the California Air Resources Board (CARB) of a $45,000 cash voucher for the Mullen THREE electric semi-truck under the Hybrid & Zero-Emission Truck & Bus Voucher Incentive Project (HVIP). This initiative aims to accelerate the adoption of advanced vehicles by providing vouchers to make them more accessible and cost-effective.
In addition to this, Mullen Automotive has also successfully concluded the initial phase of the transformation of its facility in Fullerton, California into a site capable of producing 1 GWh worth of battery packs annually. Furthermore, the company has obtained CARB approval for both its 2024 and 2025 Mullen THREE models, expanding its reach beyond California to other states as well.
The electric vehicle (EV) industry has witnessed significant growth in recent years, with global EV sales rising from 9% of total new automobile sales in 2021 to 14% in 2022. This trend mirrors the heightened interest in reducing carbon emissions and transitioning to cleaner energy sources.
Despite the broader downturn observed in the stock market, Mullen Automotive stock has demonstrated resilience, boasting a 16% gain on Tuesday. In contrast, the NASDAQ, Dow Jones, and S&P 500 have all experienced losses exceeding 0.7%, underscoring the remarkable performance of Mullen in this context.
Mullen Automotive stock is currently trading within the $6.36 to $6.95 range, with critical support and resistance levels influencing its price dynamics. Market participants are closely monitoring the potential breach of the $6.95 level, as this may signal further upside for the stock.
As with any investment decision, comprehensive research is imperative. While the EV industry presents attractive opportunities, it also entails inherent risks. Consequently, it is essential to remain well-informed and consider seeking professional guidance when navigating the complexities of the stock market.
In closing, the recent developments pertaining to Mullen Automotive have generated substantial interest in the company, signalling a promising future for the electric vehicle manufacturer. With supportive initiatives and escalating demand for sustainable transport solutions, Mullen Automotive is strategically positioned to continue its upward trajectory within the EV industry.