Mullen Automotive (NASDAQ:MULN) has until March 31st to deliver its 6,000 Class 1 cargo van EVs to Randy Marion Automotive Group.
Last week, CEO David Michery made addressed shareholders in a formal report confirming the delivery of 6,000 EVs to RMA, valued at $200 million.
At first, the rumors of the $200 million purchase order seemed to hold very little weight, at least according to shareholders who noticed the delivery had not been made yet.
Now that shareholders have received confirmation from the Mullen Automotive CEO, it’s just a matter of waiting for the promise to be delivered.
David Michery said the delivery would take place by the end of March 2023, making the 31st a big deadline for the company who’s shares have fallen more than -68% this year.
Mullen Automotive stock, now trading at just $0.10 was able to avoid getting delisted on March 6th when Nasdaq approved a second 180-day extension.
If Mullen stock fails to trade above $1 for a minimum of 10 consecutive business days prior to Sept. 5, 2023, the Company will implement a reverse stock split to cure the Deficiency prior to the expiration of the additional 180-day compliance period.
“Consistent with my message to our shareholders, we will use our best efforts to regain compliance to meet Nasdaq’s requirement for a $1 minimum bid price,” said the CEO.
Why MULN Stock is Treading a Fine Line
MULN stock is risking hitting zero as it trades just barely above $0.10.
The company has had very positive developments so far in 2023, which has led investors to believe Mullen Automotive is a target for naked shorts.
CEO David Michery has been criticized by shareholders for not speaking out on the subject matter like other CEOs are doing today.
Mullen Automotive won license for IP and exclusive distribution rights in North and South American markets for the Qiantu K50/DragonFLY.
“This agreement with Qiantu is an important milestone for the company, said Mullen’s CEO and Chairman David Michery, adding that “since day one, we have received overwhelming positive feedback for this vehicle, including our original debut at the 2019 New York Auto Show and the Indy 500 in May 2019.
We are excited to start the GT and GTRS programs on March 20, 2023.”
But despite this great development, Mullen is treading a fine line with the deadline of the 6,000 EV delivery.
If it is able to deliver on its promise, Mullen Automotive will finally have its first fleet of EVs on the ground by a reputable industry leader.
Failure to deliver and the company might continue to face investor scrutiny, and damaging the last connection of trust the CEO has with its shareholders.
Are you holding Mullen Automotive Stock?
What are your current thoughts on Mullen Automotive?
The stock price is in a very risky zone, but the delivery of its promise may completely change the tide around.
Will this be the development that sends MULN shares skyrocketing?
I’d love to hear your thoughts.
Leave a comment down below.
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