Mullen Automotive Stock News: MULN stock rallies 20% on delivery van rumors

Mullen stock rises 20% in premarket.
MULN advanced 11.2% on Wednesday.
Mullen added a News tab to their website.
Shareholders expect announcement regarding commercial vehicles.

Clay Webster FXStreet

Mullen Automotive (MULN), the electric vehicle penny stock with a hardcore shareholder following, is up 20% in Thursday's premarket after rumors circulated that news regarding the company's commercial EV vans is imminent. After bottoming out around $0.09 on Tuesday, MULN stock shot up more than 11% on Wednesday, and the rally appears to have legs.

Separately, the third update on US GDP in the fourth quarter of last year shows downgraded the annualized rate from 2.7% to 2.6%. The NASDAQ futures and other index futures are advancing on the news as the market views it as more evidence that the FEd's interest rate hikes are working to bring down inflation.

Mullen Automotive stock news: When announcement?

Two somewhat related details have emerged this week regarding the expected $200 million order for Mullen's commercial vehicles. First, Mullen added a "News" tab to the website for their commercial EV offerings: mullencommercial.com. This would seem to presage that some type of announcement is coming out.

Source: Mullencommercial.com

Last week CEO David Michery said that 6,000 vehicles would be shipped to Randy Marion Automotive, and on Wednesday an anonymous user on Twitter uploaded a video showing that a Randy Marion dealership had received a large shipment of Class 1 and Class 3 commercial delivery vans from Mullen. It would seem that the 6,000 vehicle order, with an estimated value of $200 million, in now underway.

When I went to RM on 3/23, I counted 34 Mullen & 133 Elms on the lot public has access to. There is another lot that public cannot get into (not sure if any are over there). $muln #muln pic.twitter.com/UHB1yacphg
— Dish (@Dish11808064) March 29, 2023

Separately, on Tuesday Mullen sued dot.LA, a website that published a story by David Schultz with details of a settlement that Mullen alleges are defamatory and false. Mullen hired McDermott Will & Emery LLP to bring suit against the publication in Delaware Superior Court for the story that was published on March 22.

Mullen stock forecast

Mullen Automotive stock blasted off up to $0.13 at Thursday's open, and this rally could definitely keep going. Traders are once again blaming "naked shorts" rather than the company's heavy dilution for its more than 50% drop over the past month based on Tuesday's close. Bulls will now focus on pushing MULN stock up to the 21-day moving average, which is currently at $0.1524. Above there lies the $0.18 price level that held shares up back in November and December of last year. Primarily, traders have the Relative Strength Index (RSI) on their side since previous to Wednesday's rally MULN was heavily oversold. Expect an official announcement by Mullen to cause an even greater surge in the share price this week or next.

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.

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