There’s no denying it: California-based electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN) will have to prove its value to the shareholders in 2023. MULN stock could still have powerful upside potential, but financial traders must be nimble. In light of certain developments surrounding Mullen Automotive, it’s wise to time your entry point carefully.

On one hand, you have governments in the U.S. and abroad that support the buildout of EVs and related infrastructure. On the other hand, supply chain constraints and a shaky economy could persist into the new year.

This doesn’t mean anyone should short sell MULN stock. The idea is to weigh all of the latest news items along with Mullen Automotive’s potential to disrupt the EV industry. All in all, the bullish thesis remains intact, but waiting is the most sensible strategy right now.

Good News for Mullen Automotive Investors

There’s a lot to think about when it comes to Mullen Automotive. For one thing, the automaker is introducing its I-GO Commercial Urban Delivery EV in Europe. More specifically, Mullen is bringing sample vehicles to Ireland and hopes to commence deliveries this month.

Also in the good news column, Mullen Automotive announced its first commercial dealer partner, Randy Marion Automotive Group. A division of that company agreed to purchase 6,000 of Mullen’s Class 1 EV cargo vans.

So far, then, we have Mullen Automotive venturing boldly into Europe with commercial urban delivery vehicles and striking a potentially lucrative dealership arrangement domestically. This doesn’t mean investors need to buy MULN stock hand over fist, though.

MULN Stock Share Sale Doesn’t Bode Well

Now is a time to be wary, not overeager. That’s because Mullen Automotive was late in filing its Securities and Exchange Commission (SEC) Form 10-K, which is an annual financial report.

Could the delay in filing the Form 10-K be a signal that Mullen Automotive is having fundamental problems? Investors can debate this all day long — and in the meantime, they can choose to hold off on buying MULN stock.

Also, Mullen Automotive Director Kent Puckett recently sold off his share position in the company. Reportedly, on Dec. 15, 2022, Puckett sold 100,000 shares at 33 cents.

MULN stock declined after Puckett’s large-scale share sale. Did he see the writing on the wall?

Prospective investors have every right to wonder why a corporate insider would divest so many shares. Maybe it was simply a case of year-end tax-loss harvesting — or maybe, it could have been something more sinister.

Wait for More Information Before Buying MULN Stock

It’s fine to believe in the future of vehicle electrification, and in Mullen Automotive as a company. This, however, doesn’t mean you have to jump into the trade immediately.

The most sensible move right now is no move at all. Hang tight and wait for further developments and financial information regarding Mullen Automotive. While you’re waiting, you can pick a low entry point and, if MULN stock gets there, feel free to hit the buy button.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.