Zacks Initiates Research on Net Element (NETE); Predicts $30 Per Share Target Price

  • Net Element’s reverse merger with EV manufacturer Mullen Technologies expected to close by 4Q2020
  • NETE expects to begin marketing Dragonfly K50, sold in conjunction with JV partner Qiantu Motors from 2Q2021
  • Company will also break ground in early 2021 on 1.5 million square foot facility to manufacture, assemble its own vehicles
  • Zacks forecasts that NETE could snag $30/share valuation by merger’s close

Net Element Inc. (NASDAQ: NETE), a financial technology company which has recently transformed its business model to become a pure-play electric vehicle (“EV”) manufacturer, was recently the subject of a company initiation report published by Zacks Small-Cap Research ( Following from Net Element’s decision to enter into a binding Letter of Intent to merge with privately-held Mullen Technologies Inc. in mid-June 2020, the company has sought to divest itself of its legacy payments-as-a-service transactional model and alter its operational focus towards the electric vehicle space. Now, having utilized Net Element’s EV manufacturing peer group’s average valuation of 10x EV/Sales as a comparable, Zacks Small-Cap Research has forecast that Net Element’s share price could be worth $30.00 once the Mullen reverse-merger is fully complete.

The completion of the triangular reverse merger between Net Element and Mullen Technologies is conditional on the combined entity receiving NASDAQ approval along with the completion of a $10 million capital raise, with Zacks anticipating the deal to close by 4Q2020.

During a recent presentation carried out by Mullen Technologies at JP Morgan’s Virtual Auto Conference, the company announced that it would partner with Chinese EV manufacturer, Qiantu Motors to market and sell its vehicles in the United States – with Mullen Technologies having reportedly arrived at an agreement to sell Qiantu’s Dragonfly K50 from 2Q2021 onwards.

Separately, the company also revealed that it had entered into a letter of intent with the City of Spokane to build a 1.5 million sq. ft. facility to manufacture and assemble vehicles, with work on the facility set to commence in early 2021. Remarkably, Mullen Technologies has also revealed that it expects to get to its production phase with as little as $400 million in invested capital over five years (compared to the $1 billion traditionally required) due to its current vehicle IP, which has already been two years in the making.

In addition to its partnership with Qiantu Motors, Mullen Technologies now plans to introduce its self-manufactured EV SUV, the Mullen MX-5 by the second quarter of 2022, with hopes to reach a production threshold of 35,000 vehicles per annum by 2026.

With Net Element’s existing shareholders expected to own between 15% and 21.7% of the post-merger amalgamated entity and utilizing a 10x enterprise value to sales multiple, Zacks Investment Research have estimated that NETE shares could be worth $70 per share by 2023, assuming no further equity dilution. However, by taking a conservative approach which has factored in risk and dilution and time, Zacks’ equity research team believes that the share price could easily surpass the $30 per share mark once the deal closes.

For more information, visit the company’s website at

NOTE TO INVESTORS: The latest news and updates relating to NETE are available in the company’s newsroom at

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