Hindenburg Research takes aim for Mullen

Hindenburg Research is once again making serious allegations of fraud against an electric car start-up. This time, the US company Mullen Automotive has been targeted by the short seller. Hindenburg accuses Mullen of having deceived its investors.

This applies both to Mullen’s recently reported progress in the development of solid-state batteries and to claims of orders received for its vehicles. Mullen had only invested around three million dollars in research and development in 2021 – carmakers and battery manufacturers are using many times that amount to bring solid-state batteries to production readiness. Despite the mini-investment, Mullen claims to be able to make the step by 2025.

Moreover, according to Hindenburg’s research, a recently published battery test was probably only a repeat of a test from 2020, and thus technically meaningless. Nevertheless, the publication has caused the share price (Mullen has been listed on the stock exchange since the end of 2021 via the SPAC merger) to rise by 145 per cent. A senior executive allegedly in charge of a battery joint venture told Hindenburg that the JV did not exist – and called Mullen CEO David Michery “fast-talking” and a “hustler”.

In addition, Mullen had recently made a surprise announcement that it would deliver two electric van models to a major US customer within a few months, reportedly a Fortune 500 company. According to Hindenburg, however, the vehicles are not Mullen’s own development as stated, but vehicles manufactured in China with the Mullen logo. Import records are said to show that the company recently imported two vehicles from China, one of each model. Mullen apparently does not have EPA certificates for the vans. But that is a requirement for sales – except that the whole process can take twelve to 18 months.

Nor, according to the president of the Chamber of Commerce, has there been any significant hiring at the company’s plant. Alleged images of the manufacturing plant posted by Mullen on its website are said to be stock photos, specifically from Adobe Stock Images, according to Hindenburg Research.

Mullen has had a chequered history, completely changing strategy several times. First they wanted to build an electric saloon, then in 2018 they wanted to produce the Chinese electric sports car Qiantu K50 in the US. Only two years later, an electric SUV called MX-05 was suddenly planned, which seemed to become more concrete in the course of 2021.

Before that, Hindenburg Research has attacked the electric vehicle start-ups Lordstown Motors, Nikola Motor and Kandi.

hindenburgresearch.com

4 Comments

about „Hindenburg Research takes aim for Mullen“

Anthony

14.04.2022 um 05:00

Yes I have done my research on Mullen I know about China and the EV. All American vehicles come out of China. I remember they talk bad about Tesla EV. I saw a working Mullen Car and I saw presentations of the DEMO. Their always going to be bumping in the road. That car is real. You should go and take a ride in it. We all believe in the future of EV. So take a seat and move on away from Mullen Cars.

John

15.04.2022 um 14:05

Hindenburg is a short seller and aims to bash and trash companies for financial gain. Take what they publish with severe skepticism. The Hindenburg report talked allot of the past and nothing of the future of this company. Simple research will show the partnerships to build the plant and produce the Mullen 5 that is the goal of this company. The vans are an easy target and are not the main focus of Mullen. The low R&D numbers are simple to explain with the partnerships. Look for good things from Mullen moving forward and questing the motives of groups like Hindenburg.

Don Drumheller

14.05.2023 um 18:51

Pretty much right on target about the so called research co.

Jesper

04.11.2022 um 13:31

All Hindeburg reports - from Nikola to Kandi and before that a lot of other campanies have been right. In this case meaning Mullen they are "more right than" ever. Michery have cheat and lied from day one. Mullen Automotvie is probably one of the biggest fraud seen in a long time (efter Nikola). Mullen will continue to let retailers pay for the illusion - that they one day will produce a car. They, will not - but rebuild som Chinese EV`s (I-go). Michery have run his so called business issued more and more Mullen stocks to pay for his show off, 90% of all investors have lost on this fraud. The company have no income at all and will likely go bankrupt.