MULN stock keeps rallying as equities are not spooked by Powell testimony

UPDATE: MULN stock is enjoying another day of notable gains, up 8% at the time of writing, after an hour of Wall Street trading. The EV company, now a meme stock, is exacerbating the gains in the main US equity indexes, as both the S&P 500 and the Nasdaq are trading slightly in the green on Wednesday. Federal Reserve Chairman Jerome Powell is testifying in front of the US Congress and his hawkish remarks are not spooking the markets, which might hint at heavy interest rate hikes and US recession odds already priced in. This could be an indicator that high-risk, high-growth assets like meme stocks such as Mullen Automotive have possibly found a bottom and could rise on positive news in the near future. MULN is trading at $1.68 at the time of this update, close to the $1.72 high from April 21. 

PRIOR UPDATE: MULN stock excelled on Tuesday as it rose over 15% on positive developments over its battery testing. The fact Mullen stock was able to close above $1.50 could be a breakout sign, as it had not finished a trading day at such price levels since last April 21. The electric vehicle company, considered a penny stock, became a popular retail crowd (or meme stock) last February as it reached its all-time lows just above $0.50. Mullen Automotive was then the subject of a popular short squeeze try which saw it rally over 700% in early March. Since then, momentum has fallen down, with the stock markets entering a bear market and the Fed monetary policy tightening affecting meme stocks in particular. MULN bulls are now back trying to rally the stock as CEO David Michery's plans of producing and selling electric SUVs and cargo vans make some progress.

NASDAQ:MULN continues its volatile performance this year as the electric vehicle startup posted a 32% gain last week. The main catalyst that sent shares of Mullen higher was the announcement that the stock will be joining both the Russell 2000 and Russell 3000 indices at the end of June. This is significant for Mullen as the Russell 2000 is the benchmark index for US-based small cap companies. This means Mullen will be included in ETFs like the iShares Russell 2000 ETF (NYSEARCA:IWM), which has more than $50 billion in assets under management from both retail and institutional investors.

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Over the weekend, Mullen saw another bullish catalyst when it reported better than expected results for its solid-state battery technology. The summary of the results are that when converted to a vehicle battery pack level, a 150 kW/hour battery will be able to provide over 600 miles of range on a single charge. This would surpass the range of 520 miles from the Lucid (NASDAQ:LCID) Air Dream sedan which is currently the longest range in the EV industry. Does this make Mullen the new solid-state battery king? The company is still pre-revenue and does not have any timeline for the launch of these batteries so time will tell if Mullen still has the longest range when they hit the market.

Mullen stock price

In a sign that Mullen is going to be looking internationally in the future, the company has hired Richard Curtis to oversee its global operations. Previously Curtis worked for several other automakers including Imperium Motor Company and Lithia Automotive Group. No plans yet have been revealed on an international expansion for the company.