Mullen Automotive (NASDAQ: MULN) might have crossed that line from being a not very successful electric vehicle company to being an outright scam. Or, perhaps, have done something that makes it obvious that it has. This would not be a good thing of course although give the performance of the stock over the past 12 months it perhaps doesn't make all that hugely much difference.
The reference is to a contract with the government of Washington DC. Here's Ars Technica on it: “The District of Columbia has signed a $680,000 contract for an impossible-sounding gadget that claims to increase the range of an electric vehicle by 60 percent. The contract was signed in May, but it mostly slipped under the radar until it was picked up by WUSA9 this month…..The device's inventor, Lawrence Hardge, claims that it works by "rejuvenating the battery," which sounds as close to a load of nonsense as I've heard in some time,”
And here's Vice on it: “The upshot is Hardge is, as Fast Company alleged in a feature story on him, a “convicted fraudster.” Hardge claimed on a Facebook Live broadcast to have signed a $10 billion deal with the Saudi government. Mullen's stock surged.”
And yes, it is the same Mullen Automotive: “Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces that its majority owned subsidiary, Mullen Advanced Energy Operations (“MAEO”), will today begin execution of a $680,000 contract that was previously awarded by the District of Columbia, Washington, D.C., to EV Technologies, LLC. The contract is for the purchase and installation of Energy Management Module units on Chevrolet Bolts within the D.C. city government's vehicle fleet.”
Mullen Automotive stock from NASDAQ
No, really, definitely the same company: ““The DC city project is the first of many that we have planned for the new EMM technology,” Mullen Automotive CEO David Michery said. “Municipal city fleets are a perfect use case for EVs and even better with our Energy Management Modules added for extending vehicle range and performance.”
Now, Mullen says they've parted ways with Hardge and the DC contract also seems to have died. It's entirely possible to suggest that Mullen themselves got waylaid by this very foolish idea. But if they're going to do that then what does that tell us of their savviness about EV technology? Or, obviously, there's the thought that they were just thrashing around for anything that might just look good - also not a good indicator for the business.
Our view here is that it doesn't matter, either way. The reason why that is. Taking such an idea seriously, for whatever reason, simply to us is a mark of not being serious or even competent. We rate Mullen as soon to be toast therefore.