Mullen Automotive Plunges 20.31% Despite 264.49% 20-Day Surge

Mullen Automotive (MULN) has experienced a significant decline of 20.31%, marking its 20th consecutive day of losses. Despite this, the stock has surged by 264.49% over the past 20 days, reflecting a volatile market sentiment.

Mullen Automotive (MULN) has recently experienced a significant order for its Class 3 electric vehicles, with 20 units of the Mullen THREE model being delivered to Cashflow on Wheels, a logistics provider. This order is valued at approximately $1.4 million and represents a strategic move for Cashflow on Wheels to expand its fleet with environmentally friendly options. The deployment of these vehicles on FedEx routes in Texas and Georgia is set to take place by May, marking an important step towards the electrification of Cashflow on Wheels' fleet.
Impact on Stock Price Movements
- Short-Term Movements: The announcement of this significant order could potentially lead to an initial surge in MULN's stock price due to the positive sentiment surrounding the company's commercial success and its alignment with sustainability goals. However, the sustainability of this price increase beyond the immediate announcement period is uncertain and would depend on factors such as market conditions, investor sentiment, and the company's ability to deliver on the order.
- Long-Term Movements: The long-term impact on MULN's stock price would likely be influenced by the operational savings and strategic growth ambitions demonstrated by Cashflow on Wheels. The cost savings reported by Cashflow on Wheels during their test phase with electric vehicles could set a positive precedent for other logistics providers, potentially leading to increased demand for MULN's commercial EV offerings.
Backtesting the Impact
- To backtest the impact of a new order on future price movements, we would analyze historical price performance following similar news events. However, specific data or metrics related to past order announcements and their subsequent price movements are not available. Instead, we can infer that the impact would likely be positive in the short term, given the novelty and potential for increased business of such orders.
- For a more quantitative analysis, one could look at the percentage change in MULN's stock price following the announcement of new orders and compare it to the performance of a broader market index or a sector-specific benchmark during the same period.
Considerations for Investors
- Investors should consider the potential risks associated with overreliance on a single customer or order, as well as the broader market conditions and competition in the electric vehicle sector. The sustainability of the stock price increase would depend on the company's ability to fulfill orders, manage production, and navigate the competitive landscape.
- It would be prudent for investors to monitor the company's operational updates, including the delivery of the ordered vehicles and any new orders or partnerships that may impact the stock price. Additionally, keeping an eye on broader market trends and government incentives for electric vehicle adoption could provide further context for potential future price movements.
In conclusion, while a new order can potentially lead to positive stock price movements, especially in the short term, the sustainability of these gains would depend on various factors. Investors should conduct a comprehensive analysis, considering both the immediate benefits and potential risks, when evaluating the impact of such orders on MULN's stock price.

Mullen Automotive's subsidiary, Bollinger Motors, recently delivered the first 2025 Bollinger B4 electric truck to EnviroCharge. This milestone is likely to have boosted investor confidence, as it demonstrates the company's progress in the electric vehicle market and its ability to fulfill orders.

On April 21, Cashflow on Wheels purchased 20 Mullen THREE Class 3 Electric Vehicles from Mullen Automotive. This transaction is expected to have a positive impact on the company's revenue and market perception, as it indicates growing demand for Mullen's electric vehicles.