Mullen. Mullin, Mulland, you fiend. I'm just minding my own business. Charlie horsing around as usual and all of a sudden Boom Mullen decides it's time to go parabolic Out of nowhere Now we've covered Mullen on and off throughout its overall uptrend, and I have disagreed with some folks that have said that this is a fundamental business based play.

Reasons I've given well one is that Mullen is trying to enter an extremely competitive and very capital intensive industry. Their leadership seems well intentioned, but pretty inexperienced. Quite frankly, I think that it's going to be very, very challenging to scale up without extreme dilution or some very, very intense capital raising from other sources. We are also entering and really already in a period of rising input costs, increasing debt costs, and more risk conversion to forward-looking place.

And Mullen is not just pre-profit it's also pre-revenue So those are the things that I didn't like about Mullen from a fundamental business standpoint. but at the same time, I mean, if you put any micro-cap company under a microscope, truth is, you'd probably find similar issues at the end of the day. Micro caps are companies trying to do something big despite the odds being against them. I think me criticizing Mullen and its odds based on the fundamentals is kind of missing the bigger picture and isn't really that productive.

From a trading perspective, what matters isn't is this business going to work five, six, seven, or eight years from now? It's will this stock run in the near future and can we trade off? it? Is there enough value in this company Based on words trading? Now that the company can go out and announce something tomorrow that causes it to go up 3-4 x And today the Ceo went and addressed a ton a ton of my concerns on an interview and he also presented several different catalysts that you're going to want to know about because I think they're big opportunities. At the end of the video, we're going to have a spreadsheet with each of the big catalysts that you're going to want to know about if you are trading this or planning to. and at the end of the video, I want to give my prediction on where this is going, what the odds are that it breaks down into a new all-time high, and what the overall best way to trade it would be in my view or should you just avoid it. That's also an option, right? I'm never here to tell you what to buy or sell, but rather just to inform.

So this is how he introduced the vehicle. How do you explain the uh, the excitement around your company the last couple of months? Well, we got a nice car, got some good battery technology, and uh, we want to put Americans back to work by building great products here in America. So our focus is specifically and primarily to create jobs in this country and build great products that we can be proud of when asked about how his company is going to handle supply chain issues, this is what he said. Mullins sort of avoid those those pitfalls.

Well, we'll use suppliers domestically. Our focus really is to create a supply chain that consists of companies located here in the U.s and not have a dependency on Chinese or foreign entities that would potentially restrict the flow of not just chips, but any type of Uh, products that we would use in our vehicle, the entire ecosystem from beginning to end for us, meaning Mullen. Not to. Not just the industry is going to be American.

Not only are we going to build this car in Tunica, Mississippi, we're also going to create the supply chain from Detroit all the way down into Florida, right down that automotive corridor. But we're pretty confident we're fairly confident that we've identified enough partners to be able, uh, to ensure that we are not going to have any delays in the builds of our products for us. Again, it's important to bring a lot of these jobs back from the international territory and bring them back into America where they belong. So, um, that's that's the focus.

So he doesn't really answer here how he's going to deal with supply chain issues. He doesn't talk about anything about specific relationships with providers or how he's going to get over material shortages. He doesn't really cover any of that. He just says, you know we're going to do it by going full American, which I support, but that doesn't really answer the question by the way.

Fun fact: Forbes ran a list last year that showed the 20 most American models for 2021 according to Cars.com and according to where they are built. And number one was the Tesla Model Three and number three was the Tesla Model Y. And you look at Time.com data from a few years back, they found that Tesla was the only Us brand that made 100 of its cars sold in the Us within the Us. Pretty crazy accomplishment.

It's certainly doable to make your cars domestically. Obviously, some costs are going to be significantly higher if you do that, but it is true that you are a little bit more insulated from global supply chain mishaps. Next, here's what he said when asked about the launch of their electric vans. I'm seeing a lot of questions just about the vans.

Do you have nothing on the vans? Sure. Um, again. we released the public information not too long ago that, uh, we're going to be delivering our Class 1 vehicle. Uh, in the second quarter of this year.

We're excited about that. We can't disclose to who that hasn't been publicly made available yet, but we plan on doing that shortly. And we plan on announcing that it is a very large company that is going to buy a lot of these vehicles. Uh, we feel that we have a great product.

We feel that uh, um, this product is going to be very competitive. And it's competitive. In a time when people can't really get product and we'll have product to deliver. Uh, what's nice about what we're doing? We're doing it here in America.

We're doing it in Tunica, Mississippi And we're We're going to, uh, show the world that, uh, you know the dependency on outside entities no longer exist. We can do it ourselves here in America. Uh, are? is that is that order confirmed? That's not like a pre-order right? That's like it's not. That's a good sign.

No, no, we're actually we're actually building for them. So okay, uh. we're excited. We're going to deliver the pilot vehicles to them in the second quarter as we stated, and that we're excited about it.

Uh, this is a major major, um, a Fortune 500 company. I'll put it. I'll put it that way if you. well, if you had a ballpark because Q2 starts on Friday Final ballpark, would you say like earlier? Q2 or later? Q2? Oh, I don't want, let's it's going to be in Q2.

Okay, fair enough. Fair enough. So he says they are going to start delivering Class 1 vehicle vans in the second quarter of this year. Second quarter starts this Friday and the Big Golden Nugget here and this is reported all across financial media and caused the stock to go parabolic.

Today was that they have an order from a Fortune 500 company if you could sell a major company your product, that means that other major companies may see value in it as well. and it also shows a lot of proof of concept for people who are investing in your company or considering it. and in terms of future attention, Hyper Alleys Listen to what he says here. we're gonna turn it into a press event.

I promise we're gonna make it. Uh, everyone will know and they will see and they'll be part of it. So here we have a catalyst likely in Q2 where you have not just a Fortune 500 company getting revealed as a order of these products, the vans, but also a big press event giving tons of coverage all over the place to the super small cap stock. We can debate whether it deserves extra capital based on a lot of the different fundamental factors, but at the end of the day, what drives capital over the short term? Well, attention and Pr brings attention.

Now, one of the parts of Mullen that I've been extremely critical of is their cash position and their ability to continue to pay for operations that are going to be operating at a loss for the foreseeable future. The interviewer asked him about this and this is what he said. something else that we've seen a lot in the past couple years. and I'm not really referring to mullein here, but just with with the proliferation of of new uh Ev companies out, there is the need to, uh to raise money on a on a repeated basis.

How are you feeling right now about about your your balance sheet? your cash? uh, and and maybe the need to raise more down the line because there's no fault of your own, but costs are going up. You obviously know this. That's a good question and I'm happy that you asked it. We put out a public disclosure a few days ago I'm not mistaken where we announced that uh, we're going to have at least 65 million dollars of net cash on our balance sheet when we file our queue.

Uh, I believe it's due on May 14. that's been a public disclosure that went out a few days ago, so he says their next report is actually going to show 65 million dollars of net cash. That's a decent jump from what they reported the last quarter last report, they got a lot of negative attention because they reported having only 360 dollars left. not 360 thousand, not 360 million 360 dollars.

Folks, that's not even enough to buy a lifetime membership to zip trader you. Well, unless you use coupon code, never give up Then you definitely could get it for that. Oof, what a deal, Charlie. But anyways, This, the news of them reporting a much higher cash balance for this quarter about to finish came out a few days ago on the Mullin Investors Page website.

It says company expects for reports in excess of 65 million in cash and cash equivalents when it files form 10q for the second quarter ending March 31st, which is tomorrow, and with financing we received, we now have more than enough capital to execute on our commitments for 2022. They said it's worth mentioning that their last three-month reporting period lost them 36.4 million dollars, so if they continued at that pace, it wouldn't be enough for two quarters or it would barely be enough for two quarters. They did invest in some real assets, so some of those are fixed costs and you're not going to have that show up in future reports. We'll see in their latest earnings report what they're actually spending money on, but in terms of how this capital appeared, well, they have some very interesting and dilutive financing terms.

Just for context, Mullen reported on February 11th that the total number of shares outstanding were 34.9 million in their 10q form at that time. Three weeks later, on March 1st, 2022, it jumped all the way up to 188 million obviously quite a substantial jump and explains how they got their money or at least how they secured it via financing agreements. We'll get confirmed and verified specifics and better details when we get another earnings report. Going back to the interview, here's what he said about production and delivery guidance.

Expect to have some sort of production or delivery guidance from Mullin this year. Yes, we will. Uh, obviously. Uh, our Vice President of marketing his name is Jason Putnam.

He will be addressing uh media momentarily, but we have a lot of great things in the pipeline. We're excited about where we're going and the most important thing for us? Right with Mullin, you can actually get in a vehicle and you can actually drive it. And I mean you can go 150 miles an hour today. So so we're excited about that.

Our Dragonfly is a beautiful, um, sexy sports car. Okay, so that one was a bit vague. He didn't really give an answer there. He just said his vice President would momentarily talk about it, potential catalyst if they actually announced something, but he didn't commit to them even announcing so.

But here's a segment where he was asked about the target release date for his main vehicle. So if there's anything, I think time really is, I think our biggest enemy. Meaning it just takes time to get from point A to point Z. and uh, it's just the way it is.

All of these guys out there that tell people they can get something done. You know in a year, you know again, they're lying. Okay, I mean, you know, take a car from beginning to end. You know it's a three to five year process.

It takes the Oems longer, right? I mean, it's a product of what this manufacturing process is and then the homologation, the certification. So you've got to go through the process. And when I hear a lot of these guys my competitors in the space talk about how you know they're delivering vehicles in November, right? I know that they're going to, you know, come out November, say we met next November. Then they're going to say, just say the truth.

We tell people all along right? You know, honesty is the best policy. We've never deviated. We've We've made it clear that our mall in Five is gonna start to hit Fourth Quarter of 24 and into 25. But that's a real real target date, not a date that'll get pushed.

Now it could be sooner. But that's all predicated on, you know, obviously, homologation, right? So again, you get the engineering cars out there. But engineering cars are not vehicles that you can sell, right? These are vehicles that you put on the road in your chest. So look, let's all be honest.

and let's deliver facts. Right When we tell somebody we're going to deliver 350 miles of range, We're going to deliver 350 miles of range. We're not going to deliver 200 miles of range. We're going to be honest.

When we tell somebody a cart cost x it's going to be x it's not going to be. Well, you know we're going to have to calculate what the savings would be over the next 10 years. So he's saying that they set a target date of late 2024 or into 2025 on this vehicle here the Mullin Five, and he's confident that they'll hit that now of course, in reality, and I know people don't want me to say this, but it's predicated on whether or not they can keep raising enough capital to get to that stage. But it seems that he is pretty set on that date Now if you watch my video on Mullen a couple weeks back, one of my doubts was in regards to the Atvm loan application where they were trying to get a loan from the federal government.

I thought that they would not meet their criteria. Here's what he said in response to a question about that loan. Last question's here, David, We're getting a lot of questions about the government loan and the battery. So government loan battery, can you give us nothing on either of those? When we filed on January 8th and that application I believe is publicly available, Mullin didn't have a factory.

Mullen had one vehicle called the K-50 and had a a plan to build a facility from the ground up that was very cost intensive and it was going to be in the state of Washington and Spokane specifically. And when we got the opportunity to buy a facility that was about five to six years old that had state-of-the-art assembly equipment and it was a seizure that was done. Um, it was all the former Green Tech Automotive operations. We were able to make a deal and get it on pennies on the dollar and retrofit it this April, which is coming up in a matter of days.

We're going to submit and amended our new application to the United States Department of Energy and then we will be visiting Uh, Capitol Hill and we will be pushing that initiative and we believe we can get to what we call a substantially complete application. Which means that the United States Department of Energy is obligated to go on the road with us to raise the additional capital we need in order to fulfill our entire plan which is building out 1.3 million of additional square footage of Body Shop Paint Shop and Expanded General Assembly at our current facility which is 100 acres in Tunica, Mississippi. So we're going to expand that in multiple phases. Um, that plan we believe will get to a substantially complete by June.

Then we would get what they call conditional Uh commitment for funding which we believe will be in the fourth Quarter, which means that's the United States Treasury when they fund and so from that perspective, we've been working on this for quite some time. It started back in 19 and it continues to the present We feel Now with the introduction of the Marlin Five. Um, we ran. Uh, the Voe required that we do a marketing study, which we did.

It took us six months to do on the Mullen5 and the results were amazing. It was just unbelievable. When we debuted the vehicle on November 17th in Los Angeles, the United States Department of Energy was present for the debut and so were the local municipality both at the city and state level from the great state of Tennessee. So we have a lot of support out there and we believe that the new plan, along with Mullen being public on Nasdaq Capital Markets and the fact that we're flush with cash right now, um, you know we're in a good position.

We think we're gonna get this thing done and uh, that that's in relation to the Av team loan. So we're excited about that. and we think that, uh, we've made tremendous progress. So I do think the loan from the government is a long shot.

He doesn't really address how they're going to meet that criteria and if you actually look at the numbers, I don't think they're going to fit the criteria. The minimum criteria for financially viable without the Federal loan, which is a major criteria to even qualify for the federal loan. 100 plus companies have applied for this loan since its introduction like 10 plus years ago and only a handful Actually, less than a handful of companies have been approved and much better financially fit companies that I actually think would have been approved or should have been approved under the criteria did get denied. You can see my full breakdown on the exact terms in that video that I made a couple weeks back now.

It does seem like he's going to really try to push the company in the direction towards getting the loan, but I think that there might be a little bit of wishful thinking here. I think that it's a long shot, but I do think that the speculation that perhaps a loan could go through is enough to drive a lot of retail interest throughout this year, maybe especially around the Catalyst dates where you get an announcement on progress or progress on said loan. And the best part of the April Submission Catalyst is the loan doesn't have to get approved then and it's not going to get approved, then it just has to be submitted and people are like, oh, we might get the loan and then you get a little hypey-hypey rally. Okay, so overall, I gotta say, I think the Ceo handled this interview fairly well.

He locked specifics at some points, but overall, nothing that you wouldn't expect from a growth tech player. Can't say that I like the company any less after hearing this interview. That said, at the end of the day for long term holds, I just can't rationalize Mullen. You can rationalize it if you want.

That's up to you, right? Everybody has their own perspective, but for me, eevee hopefuls are a dime a dozen and there's other ones out there that have a ton more capital, a ton more backing, and a ton more orders that are probably going to fail before the overall industry gets developed to maturity. Not to mention we are entering an environment where of course, input costs are skyrocketing, debt borrowing costs are skyrocketing, the amount of venture capital going into new next-gen companies is dropping down dramatically. Look, I hope this succeeded. I don't wish anybody bad, but I just think that it's going to be an extremely tough road down ahead.

I just think right now, what you're looking at is a hype trade. pure and simple, and that's fine. So Catalyst. To be aware of the actual disclosure of which Fortune 500 Company ordered the vans and the press release around that the next Catalyst is the actual pilot vehicles being delivered to the Fortune 500 company and corresponding pr the Ceo.

If you watched the interview that we just watched promised a big press event around that I also mentioned production and delivery guidance will be addressed momentarily. I'm not sure what that means, maybe they comment on it in April or May? We'll see. They also said they'll submit an amended loan application in April. We talked about that as a potential catalyst.

When people hear, oh, they're working for that loan, people tend not to look at the criteria and I think you're going to get a lot of hype buyers on that. Um, there's also an earnings date. This may not be a positive catalyst, but we'll get a lot of information in terms of their financial situation, which we're kind of in the dark of right now. Other than what their cash position is, we don't know how much they spent in this quarter.

We don't know exactly details on how they're getting financing or anything like that. I mean you can go through the different filings that they did post, but it seems a little bit encrypted. We can get a lot more information if you actually look at the earnings report that's going to come out. They haven't announced the date for the earnings report, I think it's probably going to be in May.

The other Catalyst: They said they have a high performance vehicle tour coming in September. That could give an opportunity for a lot of positive pr on auto websites, and we've seen that motivate a lot of different Ev stocks. Lucid's big run was when they actually got that massive press release that said, oh, the Lucid Air has an extremely good battery. What? The Mullen5 media pieces on their car have already helped drive stock prices upward.

But imagine when you start getting some cash drives and the press can look at it and take pictures and all that kind of stuff. Attention, attention, attention, The Three Ace. There's also the chance for updates on batteries and progress. They're another big driver for the stock price of this company.

Uh, in terms of big risks other than people losing attention and this going back down as people take profits Well, they filed for 253 million more shares of common stock offering, which means more dilution risk of course, on earnings. The big risk there is that costs could be out of control and a lot more than anticipated. If you look at a lot of companies that are running at healthy capacity and are mature companies, they're seeing their costs skyrocket and go through the roof and screw everything up. This company doesn't have any revenue.

Costs are a lot scarier when you haven't even really started serving customers yet. I'm just saying you might not want to hold through earnings unless you have a slot machine fetish. Now in terms of an analysis on a fairly risky but also potentially big moving play, Well, right now we are in a new cycle of attention and euphoria. I give it a 50 50 chance of breaking out into a new 20-day high, but it's going to need to do that in the next couple of trading periods because this new attention wave that was catalyzed by the announcement that a Fortune 500 company ordered some vehicles from Mullen and by this interview today, I think the life cycle and lifespan on that is probably about 48 hours.

I don't think it's going to last over the weekend, but if it does, use that 48 hours and it doesn't cool off in the next two days and it breaks out into a new all-time high. all of a sudden, that story keeps going. Why? Because now you have all these positive press releases and you also have proof that it's breaking out. So you're getting attention from the breakout and the positive press releases and it kind of snowballs and the momentum builds.

And then over the weekend people like, oh, Mullen Mullen Mullen Mullen. That said, if it dies off and this attention can't sustain the momentum this round and it finds support somewhere around the low twos or it has to go back down a level to 160s or even lower, that might even be preferable Because then you get to an area where you've de-risked the play a decent amount, it's showing proof of concept and retaining some value. And you also have about seven or so potential catalysts that are on the horizon if you could see the stock sell off to a point where you've gotten rid of a lot of the hype, and you also have a lot of new hype potential catalysts coming in the next month or so, which maybe at least four are coming in the next six or eight weeks. All of a sudden, you're in an environment where hey, you're just waiting for another break out of momentum.

If markets are continuing to be healthy and stable like they are now, I would argue that you'd start getting some pre-anticipatory runs around some of these catalysts and anticipation on these catalysts. That's my thought process at least. Anyways, folks that caps off today's video. If you have any questions, feel free to reach out to us below or join us on Ziptraderstorkl.

If you'd like to get five free stocks plus one share of Neo and you'd like access to an excellent trading platform, I'll go ahead and put a link to Moomoo down below if you're looking to learn how to trade. With our step-by-step lessons, our private chat, our daily morning briefings, as well as our full price target list, I'll go ahead and put a link to Zip trader you below coupon code. Never give up. We'll get you a nice discount before checkout.

Have a good one folks. Make sure to hit that ravishing like button and subscribe and I'll see you in the next video.