MULN - Mullen Automotive (MULN) vs Workhorse: Better EV stock to buy?
2023-06-13 10:12:02 ET
Mullen Automotive ( NASDAQ: MULN ) and Workhorse Group ( NASDAQ: WKHS ) stock prices have plunged by double-digits this year. Workhorse shares have plunged by over 45% in 2023 while Mullen has fallen by over 94.60%. With these electric vehicle companies trading near their record lows, is either of them a good investment?
Mullen stock vs Workhorse stock chart
Mullen Automotive vs Workhorse
Mullen Automotive and Workhorse Group are small manufacturing companies that research and create electric vehicles. Workhorse purely focuses on delivery vehicles that are used by retailers, postal, and companies in other industries. Its models are Class 4 W4 CC, W750, and W56.
The latest results showed that the company’s sales in Q1 were over $1.7 million, a sharp increase from the $14k it made last year. This increase happened as the company started producing its vehicles. Its cost of sales came in at $5.3 million. It ended the quarter with over $79.1 million in cash and has no debt.
Workhorse Group believes that its revenue will be between $75 million and $150 million this year. This will be a big increase since it had just $5 million in 2022.
Mullen Automotive, on the other hand, is a smaller EV company that is building consumer and commercial vehicles. Its commercial vehicles aim to save companies money for short-distance travel. Mullen Three has a range of 130 miles and a payload of over 5,802 pounds.
The most recent results showed that Mullen Automotive had no revenue in the quarter. Instead, the company used about $67.6 million in cash for operations during the quarter. It used over $97.4 million in investing activities.
Mullen Automotive has over $116.1 million in cash available for operations and investment. It also hopes to receive over $45 million. Unlike Workhorse, Mullen has over $7 million in short-term debt and long-term debt of over $4.9 million.
MULN vs WKHS: which is a better stock
As I have written before here and here , Mullen Automotive and Workhorse Group are both cash incinerators that face a difficult future ahead. This cash burn will continue even as the two companies start to manufacture and ramp up production. We have already seen this cash burn continue in well-funded companies like Lucid Motors and Rivian.
Therefore, I would recommend avoiding these loss-making companies until they demonstrate that they can grow without diluting their shareholders. However, if I was to choose one, I would go with Workhorse Group, which has started ramping up production.
Workhorse Group is also targeting a narrow sector, compared with Mullen, which is targeting both individuals and companies. As such, Mullen is competing with companies like Tesla and Rivian.
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