Mullen Automotive (NASDAQ:MULN) announced on Thursday that the company believes its stock price is significantly undervalued.
MULN stock closed up +29% on Thursday and surged an additional 5.12% after hours.
The company also announced a $25 million buyback program which explains the massive surge seen on Wednesday’s and Thursday’s rally.
“Company believes stock is significantly undervalued and is trading at a significant discount to current cash position of approximately $235M,” Mullen said in a statement.
Mullen Automotive stock is up more than +94% in the past five trading days alone.
Share prices will need to maintain this momentum in order to avoid getting delisted.
The best case scenario we can see with Mullen Automotive is for the stock price to fundamentally get back above $1 and continue from there.
“We are initiating this buyback program as an attractive opportunity to deploy capital and return value to our shareholders,” said David Michery, CEO and chairman of Mullen Automotive.
What’s incredible is that not only is Mullen Automotive buying back company shares, but they’ve also retained the services of Christian Attar to combat illegal naked short selling.
Aside from this powerful combo, shareholders are now awaiting for official production announcements this month for the Mullen Three.
Here are the latest Mullen Automotive news and updates.
Mullen is Scheduled to Start New Production This Month
Mullen Automotive is scheduled to start new production this month on its Class 3 EV cargo vans.
The company announced in May an array of shareholder updates relating to the progress of the company’s projects.
One of which stated that in July 2023 the production line for its Class 3 is planned to become operational, with anticipated deliveries and revenue from the Class 3 truck expected in August and September 2023.
Additionally, there will be optional trim and chassis assembly lines to accommodate new models.
Mullen Automotive noted that the company would also be hiring 35 additional plant staff to begin production in July at its Tunica, Mississippi assembly facility.
While the company hasn’t officially confirmed the start of production yet, it’s certainly a move shareholders are expecting to hear sometime this month.
The Mullen FIVE, Mullen FIVE RS, Mullen Commercial Class 1, Mullen Commercial Class 3 as well as the new Mullen GT are also expected to be showcased in August at the Strikingly Different EV Tour.
The company stock has finally begun to rebound after hitting a new 52-week low, whether or not Mullen will be able to maintain the momentum is another question.
However, it’s important to note that the company’s latest 8K filing states that delays may occur at any time.
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