Mullen Automotive Stock Forecast: MULN needs to hold $0.10 support

MULN is down 2.5% in Friday's premarket.
Lucid Group missed projections for production in Q1.
Lucid deliveries were 27% below Q4.
EPA release an agressive new proposal to increase EV adoption.

Clay Webster FXStreet

Mullen Automotive (MULN) fell 2.5% in Friday's premarket after luxury EV maker Lucid Group (LCID) missed expectations for both production and deliveries in the first quarter. MULN stock is trading down at $0.1014 in the premarket.

Mullen stock news

Late on Thursday, Lucid Group (LCID) announced production and deliveries for the first quarter that were far and away worse than what Wall Street had predicted. The maker of luxury EVs "produced 2,314 vehicles in the first quarter and delivered 1,406. Those figures were a far cry from the previous quarter's figures of 3,493 vehicles produced and 1,932 delivered between October and December of 2022. Sequentially, that amounts to a 34% pullback for production and a 27% decline for deliveries QoQ."

While many are blaming Tesla (TSLA) for its agressive price cuts in the first quarter, it seems that even production is remaining a weak point for Lucid. As Lucid has a market cap about 60 times larger than Mullen, that negativity is hitting all other EV manufacturers below it on Friday.

The US Environmental Protection Agency (EPA) posted new emissions standards earlier this week that are expected to buffer electric vehicles over the next 10 years. The EPA said its policy would help cut 10 billion tons of CO2 emissions from internal combustion engine vehicles over that time period while saving consumers billion of US Dollars in gasoline expense. The policy is expected to push new purchases of light-utility vehicles to 67% of all US sales in 2032.

Earlier this month Mullen introduced its new polymer solid-state batteries for its Mullen Class 1 EV cargo van that it says will push range from 110 miles to over 200 in the near future.

Mullen stock forecast

Mullen stock has been moving sideways around 10 cents for the past few weeks, although its cargo van supply agreement with Randy Marion commercial dealership led to a brief rally. Since March 23, MULN stock has been in a bullish crossover pattern on the Moving Average Convergence Divergence (MACD) indicator. For now MULN needs to hold 10 cents in order to keep interest alive. If this support breaks, expect lots of investors to sell out of their positions.

MULN daily chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD sits at three-week highs above 0.7000 on hawkish RBA-speak

AUD/USD holds a positive bias for the fourth straight day, trading above 0.7000 in the Asian session on Wednesday and at three-week highs. RBA Deputy Governor Andrew Hauser's hawkish remarks and inflation concerns underpin the pair. However, the upside appears capped as the US Dollar attracts some buyers amid looming US-Iran uncertainty.

USD/JPY remains confined in a familiar range below 158.50

USD/JPY sees some dip-buying in the Asian session on Wednesday, though it remains confined within a multi-week range near 158.50 as the uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. Meanwhile, hawkish Fed expectations, bolstered by inflation risks stemming from volatile oil prices, underpin the US Dollar. However, looming intervention fears could limit JPY losses and cap the currency pair.

Gold appears slightly bid above $4,100

Gold prices manage to reverse three consecutive daily declines, trading just above the $4,100 per troy ounce on Wednesday. The yellow metal’s recovery comes amid a humble advance in the US Dollar, mixed US Treasury yields across the board and a widespread cautious tone from the US-Iran front.

Bitcoin eyes a break above $85,000 as institutional demand returns

Bitcoin edges higher above $83,000, extending its rebound from the 50-day EMA near $80,786. US-listed BTC spot ETFs recorded over $23 million in net inflows on Tuesday, following Monday's $526 million, signaling a return of institutional demand.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.