Net Element ($NETE) – an international technology group based in Miami that primarily operates electronic payment services – is already seen as hot stock of the day on Stocktwits and Robinhood, thanks to a spectacular value increase of the share this morning from $6.47 to $15.22. The company has a key merger partner, Mullen Technologies, an emerging licensed electric vehicle manufacturer and technology company recognized by several experts as the next big competitor of Tesla ($TSLA). Not the Chinese electric vehicle market or established car brands from Europe, but the American Mullen that now wants to enter the EV-market with a solid-state battery of 150 kWh that gives a range of 500 miles. We would like to introduce you to the SUVE/crossover Mullen MX-05.

Why the electric car market is rubbing its hands

Where Mullen stands out most is the distance it claims that a vehicle can travel with this battery. The results of independent tests have shown that the battery technology allows an electric vehicle to travel 640 miles at around 55 mp/h (on a flat surface) and 550 miles at a cruising speed of 75 mp/h. This while the Tesla model-Y can cover a maximum distance of 310 miles. The side note was that Mullen will not officially launch their MX-05 until 2022 after securing financing of around $135 million, with which the company plans to purchase an existing US factory to manufacture its own electric vehicles. In doing so, it wants to strengthen its market position by being a car manufacturer that produces and distributes its own vehicles through a large internal network of dealers.

Today, Mullen announced that it will begin the construction of an electric vehicle pilot facility. With that also comes the news that from October 1, 2020 it will be possible to pre-order the Mullen MX-05 at a starting price of $55,000. Mullen confirms that the pilot facility for the vehicle’s production will be completed in April 2021. Assembly of the certification prototypes will begin by July 2021, intended to obtain all necessary certificates and licenses by the court. As a result, The R&D-center for high-voltage batteries of Mullen Technologies will begin its transformation into a state-of-the-art pilot facility on October, 1st of this year. The pilot is intended to assemble 1000 vehicles per year and then expand this with the conceptual models MX-03 and MX-07. Ultimately, this should deliver an end-production rate of 35,000 vehicles per year with estimated sales of up to $1.9 billion.

The development is good for the job market too, knowing that Mullen wants to hire 100 new employees in the short term. This new team will be responsible for the assembly, battery assembly, warehouse work and R&D facility. Over the next six years, the proposed 1.3 million square meter manufacturing facility is expected to create an additional 3,900 jobs.

Why Net Element benefits from the developments

Well now, how does this make Net Element one of the best tech-gainers at the moment? In August 2020, Net Element and Mullen Technologies announced a definitive agreement to merge. This is a stock-for-stock reverse merger, where Mullen’s shareholders will receive a majority of the company’s outstanding shares after the merger. To be precise, with the merger Net Element’s shareholders own 15 percent and Mullen’s shareholders 85 percent of the issued and outstanding shares.

“This acquisition provides the resources Mullen can use to execute its business model to integrate state-of-the-art, clean battery technology into personal and commercial vehicles, and ultimately sustainable, reusable battery technology into everyday consumer products,” said David Michery, CEO and founder of Mullen Technologies.

The Technology Fast 500 of Deloitte

Net Element supports businesses by providing payment systems with services that also include marketing solutions and business analytics. Thanks to its specialization in mobile payments and value-added transaction services, the company has been included twice (2017 & 2018) by Deloitte in the Technology Fast 500, a recognized list of the fastest growing tech-companies in North America. The company is strategically positioned for growth in emerging countries and the United States.

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By Omar