Net Element Inc [NASDAQ:NETE] is in breakout this afternoon. Though it is still volatile at the moment, today’s price move has seen it clear the losses from the last two months. The huge bullish reversal move follows the company’s announcement that Mullen, an electric car company that it recently announced a merger with was launching an electric car manufacturing facility.
The pilot facility is for the assembly of the MX-05, an electric SUV that will be completed in April next year. Mullen also announced that customers can start taking pre-orders for the SUV, and they would start at a price of $55k. The two companies recently merged in an all-stock deal that would see Mullen’s investors get the majority of the outstanding shares.
The deal is huge for Net Element investors because it means they stand to benefit from the huge value increase that will come with the sale of the MX-05. Mullen has already announced that it would start taking pre-orders for the SUV on 1st October this year.
The company has also announced it would start the transformation of its California-based research and development facility into a state-of-the-art facility for the SUVs. The upgrade is expected to start in October as well. According to Mullen CEO David Michery, the company was happy to start the construction of the pilot facility and also start taking pre-orders for its electric SUV.
He added that the vehicles would be for homologation that that would take 16 months and get completed in May of 2022 when the company expects to start selling its first vehicle to the public.
Besides, the excitement that often comes with such news, Mullen’s plans for an electric SUV stands to benefit both Mullen and NETE element investors in the long run, and it stands to reflect in the stock price. That’s because the demand for EV’s stands to grow as governments continue to make favourable policies.
Yesterday, the Governor of California stated that the State intended to ban the sale of emitting cars by the year 2035. Automatically, this means that the demand for electric vehicles is set to keep growing over the next decade. Companies like Mullen that are already taking steps in this direction are likely to grow market share and revenues and peak as the ban on fossil fuel energy takes effect.
About Net Element Inc
Net Element Inc is a financial technologies company. It is headquartered in Miami Beach, Florida.