Over the past few weeks, sentiment for Mullen Automotive (NASDAQ:MULN) has continued to worsen. MULN stock costs a dime per share after trading for just under a quarter per share earlier this month.

While shares have experienced a sharp plunge yet again, that does not automatically mean that this fledgling electric vehicle maker is on the verge of hitting the end of the road. On one hand, key issues, like heavy cash burn, continue to persist.

Mullen continues to charge ahead, in its efforts to one day become a major EV maker. In fact, just this week, the company made another major vehicle announcement.

Investors have clearly adopted an extremely bearish stance, but should you follow their lead, and be bearish yourself, or is there merit in going against the grain by being bullish? Let’s take a closer look.

 This EV Maker Keeps Making Progress

In my last Mullen article, I discussed several (at the time) recent developments with the EV maker. Namely, developments related to its efforts to bring commercial electric vehicles to market. This recent progress includes reaching the production stage with its line of Class 1 electric cargo vans.

Alongside this, efforts from Mullen’s majority-owned Bollinger Motors subsidiary, to develop and build EVs for the commercial trucking market. Since then, the company has continued to charge ahead, with additional progress in the passenger EV market.

On March 20, Mullen announced it finalized a deal with China-based electric vehicle maker Qiantu Motors, to bring its K50 model to the U.S. market. In exchange for $6 million in cash, plus warrants to buy up to 75 million shares of MULN stock, Mullen now has rights to assemble/distribute the K50 in both North and South America.

Rebranding it under two model names (the GT and GTRS), much like with its efforts in areas like commercial vehicles, Mullen could be wisely targeting a niche market (supermarket) in its efforts to strike success in this industry. Investors haven’t been excited about this latest news.

Why This Doesn’t Make Shares a Screaming Buy

Mullen’s “throwing darts at a board” approach may increase its chances of finally launching a breakthrough product, but this type of strategy doesn’t quite mesh well with investors in 2023 as it did during the 2021 bull market.

With the big changes in market conditions over the past two years, the market has lost patience with speculative growth plays. This is especially the case with companies that continue to rely on dilutive capital infusion to sustain themselves, such as Mullen.

Not only that, another major issue (a possible Nasdaq delisting) continues to weigh on MULN stock. The company has yet to provide any updates regarding any efforts to retain the listing (most likely, through a reverse stock split). The market has fallen out of love with MULN for many reasons, all of which are valid.

These valid reasons don’t mean to stay away completely, but it may be best to wait for further progress on resolving them before buying. News of a reverse stock split (to avoid delisting) would be an example of such progress. The chances of successful execution could increase if Mullen secures a more secure funding source or a strategic partner.

The Verdict

My current view on MULN isn’t all that different from before: cautious, yet at the same time, not dismissive. Mullen continues to engage in a far greater level of talk than action. Yes, even Tesla (NASDAQ:TSLA), the current EV market leader, was guilty of this during its early days.

Still, Tesla, after initially talking the talk, eventually walked the walk. Mullen keeps moving in the right direction, but it soon needs to make its own Tesla-esque leap. Whether through securing a strategic partner, or from other efforts that enable it to more effectively execute on its plans, this EV upstart needs to do more than take tiny steps.

Until then, “wait and see” with MULN stock. Check out and re-assess the situation from time to time, but don’t run out and make it a buy.

MULN stock earns a C rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.