- Recent industry report suggests that EV battery costs are down nearly 90%
- Analysts predicting that falling EV battery prices will make EVs cost-competitive in several years
- NETE planning to divest its current business model in order to enter EV industry through reverse merger with privately-held Mullen Technologies Inc.
- Mullen currently taking pre-orders for five-passenger MX-05 SUV, Dragonfly K50 sports car
Rapidly falling electric vehicle (“EV”) battery prices are fueling predictions that it will be easier and cheaper to build and market EVs within a few years (https://ibn.fm/MYD7s). In a bold move aiming to leverage these changing market conditions, Net Element (NASDAQ: NETE), a global financial technology and payments processing company, is planning to divest its payments processing model so it can enter the EV industry through a proposed reverse merger with Mullen Technologies, a privately-held California-based EV manufacturer.
The EV industry continues to grow by leaps and bounds, and research suggests that EVs may eventually dominate gas-powered cars in many sectors (https://ibn.fm/dr6cA). While government mandates, policy-initiatives and consumer preferences are pushing demand higher, falling battery prices are expected to make EVs economically feasible on the supply side in the next few years.
The effect of falling battery prices appears to be contributing to industry momentum, fueled by recent surveys that suggest costs have decreased by nearly 90%. Analysts predict that battery costs are likely to continue falling and may reach a point where manufacturers will be able to make and sell mass-market EVs at the same cost as cars that are powered by fossil fuels.
Before most of this news hit the mainstream, NETE took action in early 2020 by announcing plans to divest itself of its current business model in order to enter the EV industry through a reverse merger with privately-held Mullen Technologies. Following the required approvals, the transaction will allow Mullen stakeholders to obtain the majority of stock in the new company while also catalyzing the process of taking the company public.
“We continue working diligently in an effort to finalize the Mullen merger for the benefit of our shareholders,” said Net Element Executive Chairman Oleg Firer (https://ibn.fm/VRO4m).
Through its subsidiary Mullen Energy, Mullen Technologies is currently engaged in innovating its own battery technology in addition to taking pre-orders for its five-passenger MX-05 SUV and Dragonfly K50 sports car. Following the merger, the company is planning to build and lease 1.3 million square feet of assembly and manufacturing space in Washington while expanding its industry footprint through subsidiaries that include Mullen Auto Sales, Mullen Finance Corp., and a digital marketplace called CarHub.
The EV industry continues to make headlines throughout the world as governments continue to mandate carbon-neutral transportation policies. As the industry continues to ramp up in terms of investor interest and stock valuations, NETE’s plan to enter the EV industry appears to be the right decision at precisely the right time.
For more information, visit the company’s website at www.NetElement.com.
NOTE TO INVESTORS: The latest news and updates relating to NETE are available in the company’s newsroom at http://ibn.fm/NETE
