Mullen Automotive Stock News: MULN pares some losses on Tuesday but closes lower against surging stock market

Solid-state polymer batteries are being tested for Mullen ONE cargo van.
Mullen is now one month out from a shareholder meeting on December 15.
MULN shareholders will vote on a reverse split to comply with NASDAQ listing requirements.
MULN stock has lost 30% of its value in the past five sessions.

Mullen Automotive (MULN) stock has embarrassed its shareholders once again. The NASDAQ Composite closed up 2.37% on Tuesday on the back of a lower inflation reading that has stock market investors calling an end to interest rate hikes, while MULN crashed more than 6% on Tuesday but pared back some loses to close 2.7% lower at $0.1818.

More specifically, the US Consumer Price Index (CPI) showed no headline inflation between September and October, owing largely to falling gasoline prices. Even when energy and food were stripped out though, US inflationary pressure was largely absent. This gave Wall Street the notion that the Federal Reserve may begin cutting interest rates sooner than expected, and the stock market surged in response.

Mullen stock news: Testing out solid-state batteries

Mullen’s share price can’t seem to catch a break. MULN stock looks prepared to mark its sixth-straight daily loss on Tuesday despite broad market excitement.

Even though Mullen’s news drops are exciting these days, they are largely ignored by the market. The electric vehicle (EV) company said on Monday that it has begun “calibrating” new solid-state polymer (SSP) batteries at its new "high-energy" facility in Fullerton, California. These SSPs should eventually provide the Mullen One delivery van with a longer battery range and thus draw in a greater swath of corporate customers.

For instance, Mullen says initial testing shows the Mullen One cargo van has about 110 miles of range with its existing lithium ferrophosphate (LFP) battery. The new SSP battery packs should give the same vehicle about 190 miles of range. Furthermore, this 73% increase in range would make the Mullen One the industry leader among US Class 1 commercial vehicles.

The Fullerton facility also has production capabilities, and Mullen hopes to one day produce as much as 1 GWh per year worth of battery packs at the plant. For now, the company will focus on calibrating the new battery pack design in December and then begin test driving it in the first quarter of next year.

Nasdaq FAQs

What is the Nasdaq?

The Nasdaq is a stock exchange based in the US that started out life as an electronic stock quotation machine. At first, the Nasdaq only provided quotations for over-the-counter (OTC) stocks but later it became an exchange too. By 1991, the Nasdaq had grown to account for 46% of the entire US securities’ market. In 1998, it became the first stock exchange in the US to provide online trading. The Nasdaq also produces several indices, the most comprehensive of which is the Nasdaq Composite representing all 2,500-plus stocks on the Nasdaq, and the Nasdaq 100.

What is the Nasdaq 100?

The Nasdaq 100 is a large-cap index made up of 100 non-financial companies from the Nasdaq stock exchange. Although it only includes a fraction of the thousands of stocks in the Nasdaq, it accounts for over 90% of the movement. The influence of each company on the index is market-cap weighted. The Nasdaq 100 includes companies with a significant focus on technology although it also encompasses companies from other industries and from outside the US. The average annual return of the Nasdaq 100 has been 17.23% since 1986.

How can I trade the Nasdaq 100?

There are a number of ways to trade the Nasdaq 100. Most retail brokers and spread betting platforms offer bets using Contracts for Difference (CFD). For longer-term investors, Exchange-Traded Funds (ETFs) trade like shares that mimic the movement of the index without the investor needing to buy all 100 constituent companies. An example ETF is the Invesco QQQ Trust (QQQ). Nasdaq 100 futures contracts allow traders to speculate on the future direction of the index. Options provide the right, but not the obligation, to buy or sell the Nasdaq 100 at a specific price (strike price) in the future.

What Factors Drive the Nasdaq 100

Many different factors drive the Nasdaq 100 but mainly it is the aggregate performance of the component companies revealed in their quarterly and annual company earnings reports. US and global macroeconomic data also contributes as it impacts on investor sentiment, which if positive drives gains. The level of interest rates, set by the Federal Reserve (Fed), also influences the Nasdaq 100 as it affects the cost of credit, on which many corporations are heavily reliant. As such the level of inflation can be a major driver too as well as other metrics which impact on the decisions of the Fed.

Mullen stock forecast

With MULN stock breaking below support at $0.2210 last Friday and $0.18 on Tuesday, there seems to be no end to the madness for shareholders. In the two years since I began covering Mullen, the stock has typically only gone in one direction – down.

Current shareholders are now focused on December 15. That is when Mullen CEO David Michery will try to get his third reverse stock split of the year past shareholders via vote. The board has approved a reverse split of between a 1-for-2 and 1-for-100 ratio with the idea that this will artificially raise the share price above $1, which is required to remain listed on the NASDAQ exchange.

The 2023 reverse split saga has definitely sent many traders toward the exit, and that is why the Mullen stock price continues to make its way lower.

MULN daily chart

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