- Maggio 19, 2023
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
Shares of EV start-up Mullen have plunged over 82% so far in 2023 due to the high levels of uncertainty surrounding the pre-revenue company. Earlier this month, Mullen executed a reverse 1-for-25 stock split to bring the company into compliance with Nasdaq’s (NDX) $1.00 minimum bid price requirement for maintaining listing.
Ahead of the announcement of the reverse split, Mullen also provided a business update, stating that as of April 30, the cash available for operations was $116.1 million. The company also gave details about its manufacturing activities and certain contracts, including purchase orders worth $263 million for Mullen Class 1 and Class 3 EV vans and trucks from Randy Marion Automotive Group. It expects the production line for its Class 3 commercial vehicles to become operational in July, with Class 3 truck deliveries expected to generate revenue in August and September 2023.
While the company has been announcing several orders to revive investor interest, the penny stock remains an extremely speculative bet. On Friday, Mullen announced a vehicle purchase agreement with MGT Lease Company for 250 EV trucks, with the contract valued at about $15.8 billion.