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Why Is Mullen Automotive (MULN) Soaring If EV Stocks Are Falling?

Ollie Martin - AskTraders News writer
Ollie Martin trader
Updated 17 Mar 2022

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Key points:

  • Mullen is pioneering solid-state battery technology, a potential game-changer for the EV market
  • MULN soared 20% with Thursday's market open, defying the wider EV indent
  • The company was also recently featured on Yahoo Finance, a world-class platform for investors

In what was shaping up to be a relatively equal technological playing field, it’s quite refreshing to see companies already pushing the boundaries and creating distinctions. As the EV game develops, critical tech developments will be the underlying engine in the cogs of a competitive market. 

Up until recently, the name Mullen Automotive (NASDAQ: MULN) hasn’t been the subject of much investor dialogue. Recently though, the name might prick the ears of the savviest EV investors; predominantly due to one technological difference. A difference that has sent MULN stock soaring in the last few days amidst a strong EV sell-off. 

Read Also: Best EV Stocks To Buy Right Now

MULN stock currently trades at a 19% premarket gain this morning, continuing solid gains from mid-February. It’s not just incessant retail hype that is driving MULN, it’s the company’s promising progress on solid-state battery technology. Whilst Toyota holds a variety of solid-state battery patents, the long-lasting pivotal technology is still widely untouched in the growing market.

Another argument for the recent success of Mullen is the company’s consolidated supply chains. Mullen’s vehicles are built entirely in the US, meaning that whilst the wider market grapples with global shortages and unavoidable delays, Mullen isn’t as tethered to bottlenecks due to its manageable, localized supply options. Hence as the market sells off, Mullen is attracting more investment.

Finally, Mullen is attracting all the right attention, at the right time. The manufacturer received a prominent feature on Yahoo Finance, the world's largest platform for business news, as well as recent coverage on CarBuzz. All in all, I think Mullen’s support is indicative of supply chain sentiment. Investors are looking towards companies that are domestically grounded and that offer less exposure to possible delays and shortages. 

Ollie Martin - AskTraders News writer
Oliver is a financial writer and analyst specialising in the US stock market, with years of personal experience in understanding micro/macroeconomic structures, market trends and fundamental analysis.