What is going on with Mullen Automotive?
In this video I will try to answer this
question. but the most important question
on shareholders Minds is: Will MULN STOCK
go up this week? after all
everywhere across social media you will
easily find people saying that Mullen
stock will go to ten dollars or go to
100 dollars (NASDAQ:MULN Stock)
but what facts are these predictions
based upon or are these people simply
just pumping the stock. is it possible to
get Mullen shares for only 13 cents per
share? yes 13 cents!
that is a real question that I will look
at later in this video using facts
in today's video I will not talk about
rumors I will not talk about opinion I
will not even talk about my own opinion
today I will simply look at the facts
today I will look at Mullens filings
with the SEC and Mullen's own press
releases over the past few weeks
and I will show you that even the best
data websites like ortex or fintel are
not always correct in fact sometimes
they are wrong by millions this video
has taken a lot of time and effort to
prepare today so if you appreciate the
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you're new now I usually say that the
following video is just my opinion and
not Financial advice however today's
video is not my opinion today's video is
just looking at the facts but this is
still not Financial advice so whatever
you're going to do with this talk I wish
you all the best now let's get into it
so what is going on with Mullen
Automotive #mulnstock #mulnfive
so the first thing that I want to say is
that in the very short term there could
be major upside based on a couple of
reasons which I will discuss later in
this video
but more importantly what has been
happening over the past few days
so first of all David mitchery CEO of
Mullen Automotive had promised that the
company would announce a deal with a
Fortune 500 company that is said to buy
a lot of Mullen Automotive Vans this
deal was first mentioned back in March
and David mitchery set the deadline that
this would be announced in a major PR
before the end of the quarter as of
Thursday evening there was no
announcement about this but instead
Mullen released a PR statement stating
that they now have the strongest balance
sheet in the company's history
so this press release dates
that they expect to report in excess of
61 million dollars in cash and cash
equivalents on June 30th after having
significantly strengthened its balance
sheet over the quarter
and this is something the shareholders
really need to be aware of this is
something that is absolutely
catastrophic for shareholders and I will
discuss this more in just a moment
but first the highlights of the rest of
this press release
Mullen delivered its first EV van under
a pilot program to a telecommunications
provider which we already know
payoff of a secured convertible
promissory note in a deal with the esousa
Holdings. Mullen was added as a member of
the U.S small cap Russell 2000 and
Russell 3000 indexes and Mullen Regional
agreement subject to approval by the
company shareholders to secure 275
million dollars in additional funding
for the company
now this entire press release is just a
rehash of the information that was
released just one week earlier on June
23rd the company issued this update
which says the exact same information
Mullen delivered a TV van Mullen joins
the Russells Mullen reached an agreement
subject to shareholder approval to
secure 275 million
the June 30th press release should have
provided us with new information about
the Fortune 500 company and details of
that contract Mullen was not under any
pressure to announce this deal back to
the world in March but to set a deadline
and then not meet that deadline is just
incredibly unprofessional
remember that this is a deadline that
David metry himself said for Mullen
Automotive
all this did was create a hype around
the stock and turn Mullen Automotive
stock into one of the most talked about
stocks on the market as we can see here
even months on from this
only Tesla is more talked about than
Mullen
but this is nothing new David metry has
been making promises and setting
deadlines for Molin Automotive for years
which is something that I will look at
in a moment but first let's go back to
the claim about the strongest balance
sheet in the company's history Mullen
will report in excess of 61 million
dollars of cash
but only five weeks ago back on May 17th
Mullen Automotive reported their
earnings report for the first quarter of
the year and as we can see here
as of March 31st Mullen had cash and
cash equivalents of 65.1 million dollars
now this is an incredible improvement
from the balance sheet that they had at
the time of the previous financials
which showed that they had only 360
dollars as of December 31st so between
December and March Mullen raised 65
million dollars but they did this
through a massive dilution
the end of 2021 there were 17.47 million
shares of Mullen stock outstanding
by the time we got to the marriage
financials this had raised threefold
up to over 51.3 million shares
Now 51 million shares is still a small
float but dilution of 300 percent is
incredible and 65 million dollars is
nothing for a startup EV company
if you've seen my videos over the past
couple of weekends where I've looked at
the financial statements of other EV
companies for example Lucid has over 5
billion dollars of cash rivien has over
17 billion dollars
even Polestar has over 1.2 billion
dollars so 65 million is nothing for an
EV company
and as we can see here Mullen made a
loss of over 30 million in the first
quarter of 2022 alone 65 million would
get them through two quarters
but it gets fare worse than that
if they are burning through 30 million
dollars per quarter and they have 65
million at the end of March then how
exactly does Mullen Automotive still
have 61 million at the end of June that
means they either spent only 4 million
dollars in the past three months or they
have deluded shareholders by a little
bit more
well in fact a little bit more is
actually a lot more by the way guys all
these figures are coming from Modern
automotive's very own SEC filings this
information is 100 accurate otherwise
these filings would have to be amended
with the SEC
so if anyone wants to check this
information for themselves
go to the Mullen Automotive website look
at their filings and read through them
this is the company's recent
14a filing from June 24th this is quite
a long document at well over 40 pages
but there is a breakdown of the current
ownership structure of the company as we
can see here
there is now
477.5 million shares of common stock
currently outstanding which means that
in the past six months since the end of
December Mullen Automotive has gone from
having 17 million shares up to 477
million shares that means that Mullen
has actually diluted shareholders by an
incredible
2630 percent
they have issued 460 million shares in
six months
460 million shares
for which the company has now got 61
million dollars
61 million dollars for
460 million shares
something that I always ask when I see a
company that has raised a lot of cash is
the question of how did they raise that
cash and how much did that cash actually
cost the stockholders in this case the
issuance of 460 million shares this
effectively means that for every share
that Mullen Automotive issued over the
past six months they have received about
13 cents per share software has all the
money from these shares actually gone
well we can see here that David mitchery
actually owns 148 million shares
of Mullen himself which amounts to 29.5
of the company
he also owns pretty much all of the
series a and series C preferred stock so
148 million shares
this is a huge increase from the 44
million shares that David mitchery owned
at December 31st so he has effectively
gained an extra 100 million shares for
himself in the past six months or to put
that in real money terms
in the past six months he has
effectively increased his shareholding
by 108 million dollars
but all the SEC filings show for David
metry is sale of shares and gifting of
shares guys if you appreciate this type
of analysis where I look at real data
and get into real facts about companies
then smash the like button subscribe to
the channel and most importantly follow
me on Twitter
this is the first in a series of videos
that I plan on doing on Mullen stock
over the next few days in the upcoming
videos I will be looking at promises
that this CEO and this company have made
over the past few years
that have also not come to fruition I
will look at other agreements that
they've had in place that have never
materialized into anything serious and
never produced any tangible results if
this is something that you would like to
see then drop a comment down below
but the last thing that I want to talk
about here is something that a lot of
people seem to not fully get the grasp
of not every website that you look at
will give you accurate information
daily information
for example I see so many stocks right
now but everybody is quoting data from
the likes of fintel
orortex people see this data as gospel
they see this data about insider trading
or CTB
short interest days to cover whatever
and they made the assumption that these
websites data is 100 correct
but let's look here at fintel according
to fintel David mitchery owns only 6.9
million shares of MULN stock
and that back in January he owned 8.3
million shares but we know it for a fact
that as of this week he owns at least
148 million shares it is in the SEC
filings so never base your entire
investment thesis on data from any of
these websites
there is no guarantee
that it is correct however the SEC
filings are correct they have to be
correct if these filings are wrong they
need to be amended and resubmitted
for example we can see here that with
the quarterly report last month that was
submitted on the 16th of May then had to
be amended and resubmitted the following
day so guys that brings us to the end of
the video if you want to see a follow-up
video where a look at the other red
flags of Mullen and look into why there
are so many lawsuits being filed
recently then drop a comment and let me
know follow me on Twitter to stay up to
date but remember that I am not a
financial advisor this is not Financial
advice and that all the information in
this video came from Modern automotives
very own SEC filings
any company or CEO can do interviews
they can issue press releases they can
say whatever they want but the SEC
filings must be correct which is why
I've taken all my data in today's video
from the company's SEC filings so for
anyone who is about to call me a liar or
a bear or about to claim that I'm
shorting the stock
then you really should learn how to read
research and analyze to my usual viewers
who will watch this until the end as
usual you guys are true Legends and I
appreciate the support so much catch you
in the next one