Could a turnaround moment be in store for California-based electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN)? It’s possible, as an order from a dealer group and an opportunity to delve into EV infrastructure could propel MULN stock much higher in 2023.
Conditions certainly haven’t been favorable for Mullen Automotive this year. In a highly competitive luxury EV field, Mullen has had to deal with persistently high inflation and the threat of an imminent recession.
As we’ll see, Mullen Automotive’s shareholders have suffered harsh financial drawdowns lately. On the other hand, there’s hope for a swift recovery next year as Mullen just secured a couple of notable deals.
What’s Happening With MULN Stock?
I hate to be the bearer of bad news, but MULN stock is firmly in penny-stock territory now. Mullen Automotive shares were worth more than $5 at the beginning of 2022, but lately, they’ve traded for less than 40 cents apiece.
Will the situation improve in 2023? It’s hard to say for sure, but there’s evidence that Mullen Automotive could demonstrate growth in the commercial-vehicle market.
Randy Marion Automotive Group (RMA) just became Mullen Automotive’s first commercial dealer partner. That’s a big deal because RMA is “one of the largest and most respected commercial vehicle dealer groups in the U.S.”
Here’s where it gets even better: a division of RMA has agreed to purchase 6,000 of Mullen Automotive’s Class 1 EV cargo vans. Mullen’s deal with RMA is worth approximately $200 million, so we’re talking about a major revenue source here.
Moreover, RMA CEO Randy Marion said he has “many customers looking at me to find product for their companies.” Without a doubt, Mullen Automotive is glad to fulfill the demand for commercial EVs.
Mullen Automotive Is Venturing Into EV Infrastructure
You might think of Mullen Automotive as a business that sells EVs, and that’s certainly accurate. Yet, Mullen clearly has wider ambitions as the automaker has disclosed a partnership with EV charging-solution provider Loop Global.
This is a collaboration with grand ambitions. Together, the two companies will “offer a comprehensive solution for businesses, municipalities and residential EV drivers looking to deploy seamless and reliable EV charging stations.”
The new service is called Mullen EV Charging Network Powered by Loop. It’s described as a turnkey solution for clients. Furthermore, the service will reportedly include “everything from site assessment and design to installation and ongoing operation,” along with “fast-charging capabilities and smart charging technology.”
Mullen Automotive and Loop Global will also collaborate on what’s known as the Loop Impact Fund. Through this, eligible customers will get assistance with financing and operation of the available EV charging infrastructure. So, it looks like Mullen Automotive could be much more than luxury EV maker in the near future.
Is MULN Stock a Buy?
Mullen Automotive’s investors could certainly use some positive catalysts now. Hopefully, the deals with RMA and Loop Global will give MULN stock a boost next year.
Forward-looking investors can anticipate the positive impact of these partnerships with a small investment in Mullen Automotive. The shares are definitely a buy in my book. So, feel free to take a small but confident position today.
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On the date of publication, David Moadel 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.