Mullen Automotive (NASDAQ:MULN) stock was up more than 20% in morning trading on news that the electric vehicle company plans to conduct solid-state battery testing at an independent facility.
In a news release, Mullen Automotive said that it is carrying out solid-state polymer battery testing at the Battery Innovation Center (BIC) located in Indiana. BIC says that it focuses on the “rapid development, testing and commercialization of safe, reliable and lightweight energy storage systems.”
The announcement of the battery testing is the latest in a string of positive news from Mullen Automotive. However, despite today’s rise, MULN stock is down 71% year to date. Over the past 12 months, the company’s share price has declined 84%.
What Happened With MULN Stock
Mullen Automotive said that BIC will perform multiple tests on its solid-state polymer battery, including a constant current discharge test used to determine the effective capacity of the battery; a peak power test that’s used to determine the sustained discharge power capability of a battery; and a constant power discharge test that helps to define the voltage versus power behavior of a battery. Taken together, the tests should help to determine the viability of Mullen Automotive’s solid-state batteries.
“We have begun working with the Battery Innovation Center located in Indiana to retest and certify our solid-state battery,” said David Michery, chief executive and chairman of Mullen Automotive, in the news release. “BIC is a well-respected battery laboratory, and we look forward to publishing their results related to cell testing coming up in May.”
Why It Matters
News of the solid-state battery tests is the latest in a string of positive announcements from Mullen Automotive. A week ago, the company said that is has started construction on its long-gestating battery plant. In a news release, the company said it has begun building electric vehicle battery packs to be used in its upcoming vehicles that include an electric cargo van, crossover vehicle and sportscar. Mullen says it is developing its own batteries to lessen its reliance on third-party suppliers and reduce risks associated with shortages that have hobbled automakers over the last year.
Additionally, MULN stock jumped 7% in a single trading day recently after the company announced that it has hired a former Tesla (NASDAQ:TSLA) executive in a key leadership position. John Taylor joined Mullen in the role of senior vice president of global manufacturing and strategic planning. Taylor is a veteran of the automotive industry and was one of the first 50 employees hired at Tesla. He rose through the ranks and eventually led Tesla’s advanced manufacturing engineering group. Mullen says he played a major role in developing Tesla’s first manufacturing plant in Fremont, California, and that he helped develop several of Tesla’s electric vehicles, including the Model S.
What’s Next for Mullen
While Mullen Automotive’s stock is rising today, investors should keep in mind that the company’s share price stock has continued to decline despite the recent announcements. In the past month, MULN stock has fallen 50%. Such a steep selloff in a short period of time should be cause for concern among investors. Proceed with caution.
On the date of publication, Joel Baglole 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.