Mullen Automotive (NASDAQ:MULN) stock closed higher by more than 65% yesterday after CEO and Chairman David Michery released an open letter to shareholders addressing MULN stock’s decline. Some of these gains reversed earlier this morning, although MULN is back up by about 8% as of this writing.
“I am very disappointed by the performance of our stock,” said Michery. “As I have previously publicly stated, I do not believe the trading price of our stock even closely resembles the Company’s actual value. It is evident that, regardless of meeting significant corporate milestones (i.e., vehicle production completion within projected timelines), stock traders continue to place downward pressure on the stock, causing the price to fall.”
On April 28, Mullen announced that it had retained ShareIntel to investigate alleged market manipulation and illegal short selling of MULN stock. In the letter, Michery stated that an update on the investigation would arrive “in the coming days.”
CEO David Michery Pens Open Letter to Address MULN Stock Decline
In the letter, Michery also highlighted the company’s recent financial and operational highlights, all of which have been previously reported and publicized. Notably, the letter states that the electric vehicle (EV) company had a cash balance of $227.4 million, assets of $600 million and debt of $7.3 million as of June 30. It also reported its first-ever revenue of $308,000. However, this revenue was likely not in Mullen’s hands as of June 30 because Mullen reported an accounts receivable of $308,000 in its recent 10-Q. The 10-Q shows assets of $559.97 million as of June 30, of which goodwill — an intangible asset — accounted for $92.83 million.
Michery did not address the significant dilution MULN stock has experienced since it began trading publicly, nor how it has contributed to the decline in MULN. Earlier this week, Mullen registered 30 million shares to Michery as part of his 2022 and 2023 Performance Stock Award Agreement. Another 52 million shares were registered as part of Mullen’s 2023 Equity Incentive Plan.
Mullen’s most recent operational highlight is its Class 3 vehicle rolling off the assembly line. Taking Mullen’s import history into account, this vehicle may be sourced from China and then outfitted to the needs of its customers. Upon full acceleration of its Tunica, Mississippi assembly facility, production capacity is “currently planned at 3,000 vehicles annually per shift.”
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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.