Hindenburg Analysis got here out with a brand new report on Wednesday calling Mullen Automotive “one other fast-talking EV hustle,” claiming the up-and-coming electrical car startup has “grand guarantees — and little to again them up.”
Based in 2014, Mullen has been making an attempt to construct aggressive electrical automobiles and develop new battery know-how that may revolutionize the increasingly-saturated trade. The corporate’s inventory has climbed round 316 p.c, in response to the report, which has been pushed by “retail investor euphoria over daring claims of ground-breaking know-how, close to time period manufacturing of its EV vans, and a serious as-yet-unnamed Fortune 500 buyer.”
A substantial chunk of that progress got here just lately as Mullen launched an replace on battery testing, which despatched the corporate’s top off 145 p.c, the report states. “In actuality, the “information” seems to be a rehash of testing the corporate had already introduced in 2020,” Hindenburg wrote. The in depth report additionally questions Mullen’s analysis and improvement practices, which haven’t aligned with what the corporate has spent investing in creating its merchandise. Hindenburg stated Mullen solely spent round $3 million in R&D final 12 months, regardless of the corporate stating it’s on monitor for commercialization of solid-state batteries throughout the subsequent 18 to 24 months. In the meantime, different firms and important automakers have funneled billions into creating the tech, with out a lot to indicate for it.
Different claims within the report state that the 2 electrical cargo vans Mullen stated it would manufacture are literally Chinese language EVs rebranded with an organization brand. “Import data present the corporate just lately imported two automobiles from China, one among every mannequin,” the report stated.
Moreover, Mullen has main manufacturing hurdles to leap over, together with EPA certifications and a necessity for workers.
Mullen shares (NASDAQ: MULN) dropped as a lot as 8.27 p.c this morning after the report was printed. Shares have been down round 4.4 p.c as of 12:51 PM EST. Mullen didn’t instantly reply to Teslarati’s inquiry for remark.
The automaker is presently creating its introductory EV, the Mullen 5. An all-electric crossover, Mullen estimates the vary will probably be round 325 miles, with a max pace of 155 MPH and 0-60 in simply 3.2 seconds.
Earlier this week, Mullen introduced the promotion of former Tesla government John Taylor to its World Manufacturing and Strategic Planning Head. “John brings a wealth of expertise within the EV manufacturing house. He performs a important position within the ongoing setup and enlargement of Mullen’s Superior Manufacturing and Engineering Heart (AMEC) in Tunica, Mississippi,” CEO David Michery stated. “John’s worldwide manufacturing expertise will come into play as he strategizes and evaluates Mullen’s different home and worldwide manufacturing alternatives.”
Hindenburg Analysis has launched quite a few short-seller reviews previously, together with one with Nikola Motor that turned out to result in the corporate’s eventual restructuring. Founder Trevor Milton stepped down, and was indicted on fraud prices late final 12 months.
The complete report towards Mullen Automotive is accessible right here.
Disclosure: Joey Klender is just not a Mullen Shareholder.
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