Is There Any Hope Left for This EV Stock?

Despite its latest bids and acquisitions, the company has failed to generate positive investor sentiment. The stock hit its lowest point in the last session. Will MULN be able to gain traction in the near future? Let's find out what's going on...

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Electric vehicles are manufactured and distributed by Mullen automotive. CarHub uses artificial intelligence to offer an interactive solution for buying, selling, and owning a car.

Electric Last Mile Solutions filed for Chapter 11 protection in June 2022. The majority acquisition of the company was done this month.

David Michery, CEO and chairman of Mullen automotive, said that all cash and stock required to close the transaction on September 7, 2022, has been funded. We are looking forward to updating our shareholders with the positive outcomes of this acquisition.

Over the past month, the company has lost almost 50% of its value. The year-to-date loss is 93.7% and the year-to-date loss is 96.4%. The stock hit its low in the previous session.

In the near term, here's what could happen.

The rate hike was the third in a row.

The Fed hiked its rate three times in a row. The Federal Open Market Committee is determined to bring inflation down to 2% and will keep at it until the job is done.

The persistently high inflation and the Fed's quest to tame inflation could affect vehicle demand.

The financials are weak.

General and administrative expenses for the second quarter came in at $10.90 million, an increase of 121.2% over the same period a year ago. Its loss from operations was $18.22 million, up 184.5% from a year ago, and its net loss was $59.47 million, up 289.9%.

The profitability ratios are poor.

The industry averages are 6.91% and 5.05%, respectively.

POWR ratings reflect bad news.

A Strong Sell rating equates to an overall rating of F. The POWR Ratings are calculated using 118 different factors.

The D grade for Quality is consistent with the lower than industry profitability ratios.

It has an F for value. The trailing-12-month Price/Book of 8.65x is more than three times the industry average.

The auto and vehicle manufacturers industry has 65 stocks. The industry has a rating.

You can click here for the additional POWR ratings.

Here you can find the top stocks in the auto and vehicle manufacturers industry.

The bottom line.

The stock is below its 50-day moving average and its 200 day moving average. It had hit its lowest point in the last session. I think it might be best to avoid it now.

How does the company stack up against its peers?

One might consider looking at its industry peers, which have an A rating or better.

The shares were down by $0.01 at the time of writing. The benchmark S&P 500 index has risen over the course of the year-to-date.

Riddhima loves analyzing financial instruments. She helps investors make informed investment decisions with her insightful commentaries.

There is more.

There is no hope left for this EV stock.