It’s not every day that I go full-on bullish with a penny stock. Yet, I’m sending a positive signal today on California-headquartered electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN). The highly anticipated production of the Mullen Five vehicle, as well as the upcoming distribution of Mullen’s preferred shares, should motivate risk-tolerant traders to take a long position in MULN stock.

Don’t get the wrong idea here. EV stocks, and particularly penny EV stocks, are risky bets. Volatility is to be expected, but patience will be a virtue for true believers in Mullen Automotive.

Or at least, that’s what I’m expecting. There are certainly no guarantees of profits here. Stay with me, though, as there are a couple of dates to mark on your calendar and 2022’s fourth quarter could prove to be a game-changer for Mullen and its stakeholders.

MULN Stock Investors Should Focus on Operational Timeline

December of 2022 was certainly an event-filled month for Mullen Automotive. The automaker’s first I-GO Commercial Urban Delivery EVs arrived in Europe. The first leg of Mullen’s Strikingly Different tour concluded, with CEO David Michery observing, “Every location sold out, and we received overwhelmingly positive feedback on the Mullen Five.”

Mullen Automotive will focus on the East Coast, Northwest and Midwest as the second leg of the Strikingly Different tour commences in the spring of 2023. Moreover, production of the Five EV model is finally expected to start during this year’s fourth quarter.

Granted, December wasn’t a perfect month for Mullen Automotive. Unfortunately, the automaker was late in filing its Form 10-K, which is an annual financial report. That’s not the end of the world for Mullen, though. What’s most important is that Mullen Automotive is moving promptly along its operational timeline toward fourth-quarter production of the Mullen Five.

January and February Could Be Significant

Folks, you’ll definitely want to mark your calendar for Jan. 24 and Feb. 24, 2023. No, it’s not because I’m expecting a massive MULN stock short squeeze to occur on those dates (though it’s certainly possible.)

Rather, I encourage you to get ready for those two dates because, as Chris MacDonald recently reported, Mullen should soon honor a Securities Purchase Agreement for preferred shares.

I first caught wind of this when Eddie Pan sent out an alert in November of 2022. Apparently, there was $90 million remaining from a commitment amount in a Securities Purchase Agreement involving Mullen Automotive.

As MacDonald explains, “a second amendment of this agreement stipulated that $90 million will be paid out to investors in the form of Series D preferred shares on Jan. 24 and Feb. 24.” Could this prove to be a windfall for MULN stock owners?

The answer might be yes. The most recent amendment to the Securities Purchase Agreement, MacDonald clarifies, indicates investors “will be able to purchase these preferred shares at a price no higher than $1.27 (with a floor of 10 cents).” Thus, there could be a huge incentive for enterprising traders to start accumulating Mullen Automotive shares prior to Jan. 24.

What You Can Do Now With MULN Stock

The distribution of Mullen’s preferred shares will likely be a notable event. However, it shouldn’t be the main reason to invest in Mullen Automotive.

Rather, prospective shareholders should have a firm belief that the Mullen Five vehicle will gain traction among EV drivers. This could happen in 2023 or 2024, so Mullen Automotive’s investors will need to be patient and risk-tolerant.

So, ask yourself: Am I on board with Mullen’s ambitious timeline toward full vehicle production? If so, then feel free to consider a stake in MULN stock today.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

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.