BlackRock Increases Stake in Mullen Automotive Despite Widening Losses

Mullen Automotive Stock

Mullen Automotive (MULN:NSD) , an emerging electric vehicle maker, has seen a 32% increase in its stock price year-to-date, and BlackRock (BLK:NYE), the leading asset management company, has shown confidence in the company by increasing its stake in it. According to BlackRock’s Q4 13F filing, it increased its holdings by 1% in Q4, after increasing its stake by 234% in Q3.

Despite BlackRock’s growing interest in Mullen Automotive stock, the company announced that its losses widened in Q4, reporting a net loss of $376.9 million compared to $156.1 million in the prior year’s quarter. The company attributed the losses to increased non-cash financing expenses and a ramp-up in development efforts.

On the positive side, Mullen Automotive secured a purchase order worth $200 million for 6,000 Class 1 EV cargo vans from Randy Marion Isuzu, and it also obtained exclusive branding, sales, and distribution rights for Mullen’s I-GO in some European markets.

Mullen Automotive’s recent developments and BlackRock’s increasing stake in the company are positive signs. However, investors should be cautious as the company is still in the product development phase. The company expects to start retail production of its first electric crossover, Mullen FIVE, in the fourth quarter of 2024.

Given the company’s early stage, access to capital, equity dilution, and competitive headwinds could continue to pose challenges. Mullen Automotive’s Smart Score of two on Stock Target Advisor indicates that it is more likely to underperform the broader markets. Therefore, investors should weigh the risks and benefits before deciding whether to buy or sell MULN stock.

 

Mullen Automotive Stock Analysis:

Based on the Mullen Automotive stock forecasts from 1 analyst, the average analyst target price for Mullen Automotive Inc is USD 0.65 over the next 12 months. Mullen Automotive Inc’s average analyst rating is Strong Buy.

Stock Target Advisor’s own stock analysis of Mullen Automotive Inc is Bearish, which is based on 1 positive signal and 3 negative signals. At the last closing, MULN stock price was USD 0.38. Mullen Automotive Inc’s stock price has changed by -8.17% over the past week, +5.31% over the past month, and -64.81% over the last year.

 

Company Profile:

Mullen Automotive, Inc., an electric vehicle company, manufactures and distributes electric vehicles. Its products include passenger electric vehicles and commercial vehicles; and provide solid-state polymer battery technology. The company is headquartered in Brea, California.

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