Mullen Automotive (NASDAQ:MULN) stock is up 50% today on positive media coverage of the electric vehicle maker’s new crossover vehicle called the Mullen FIVE.
Trading volume of MULN stock is excessively high today after the company and its electric crossover vehicle have been featured on automotive news site CarBuzz.
Prior to today’s move higher, Mullen Automotive’s share price had been down 77% year to date and down 85% over the past six months to $1.35. The company, based in Brea, California, is one of a crop of electric vehicle startups working to bring new products to market.
What Happened With MULN Stock
CarBuzz is a popular automotive news site, claiming to have more than 9 million monthly visits. The article on the CarBuzz website features an interview with Mullen Automotive’s CEO David Michery and discusses the company’s financials and production strategy for the Mullen FIVE crossover.
The Mullen FIVE is built on an electric vehicle crossover “skateboard platform that offers multiple powertrain configurations and trim levels in a unique, streamlined design.” The vehicle was named the “Top Zero Emission SUV” at the Los Angeles International Auto Show last November, where it made its official debut.
Why It Matters
The positive coverage in CarBuzz is beneficial for Mullen Automotive and its stock, which has been severely beaten down since last fall. Today’s move higher is welcome relief to shareholders who have watched the stock plummet more than 80% and run the risk of falling below $1 a share.
More broadly, Mullen Automotive is another example of the fledgling startups that are looking to enter the electric vehicle sector and compete against established automakers such as Tesla (NASDAQ:TSLA) and Ford (NYSE:F) for market share.
What’s Next for Mullen
MULN stock gets a nice lift higher today and shareholders get some relief. However, given how much the share price has declined in recent months, it will take sustained growth and continued execution on the part of management to get the company’s stock trending higher over the long term.
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On the date of publication, Joel Baglole did not have (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.