Shares of Net Element Inc (NASDAQ: NETE) today surged 170.7% premarket after Mullen Technologies Inc, announced that it will start building a pilot manufacturing facility for its MX-05 fully electric SUV on Oct. 1, 2020.
Mullen Technologies is a private company that is set to merge with NETE in a reverse takeover where Mullen shareholders will become majority owners of Net Element, which is why the latter’s shares rallied higher today.
The company is riding on the waves created by SPI Energy’s announcement yesterday that it would start building its own electric vehicles in the USA.
However, investors should be cautious of such announcements because many times, they are made in order to boost a company’s stock price, only for it to fall after a brief rally, which is exactly what happened to NETE’s stock today.
The company’s shares were up 68% at the time of writing after giving up most of its gains in just two hours.
Net Element share price
Net Element shares today surged 170.7% to hit a high of $17.49 having ended Wednesday’s session trading at $6.46.