- EV Stocks were mixed as Tesla anticipates large quarterly delivery volume.
- Mullen will need its electric delivery truck division to take the lead.
Update: MULN has been trending on news from earlier in the week that the electric vehicle maker could be a top bidder for the assets from bankrupt Electric Last Mile Solutions when an auction is held on Oct. 7. Technically, it is showing signs of strength on the daily chart and has started to correct that September rout. On the weekly chart, a 50% mean reversion comes in at $0.6390.
Update: MULN finished Wednesday at $0.36 per share, up 7.10%. After reaching fresh 2022 lows on Tuesday, Wall Street enjoyed a dramatic U-turn. The Dow Jones Industrial Average added 548 points and settled at 29,683, while the Nasdaq Composite added 2.05% and closed at 11,051. The S&P500 was the best performer, recovering 2.25% and finishing the day at 3,729. Collapsing government bond yields boosted demand for high-yielding assets, as the yield on the 10-year Treasury note shed roughly 20 bps. Market players may have gone too far with the dollar, and profit-taking added to the general mood.
It's yet to be seen whether the recovery is set to continue in a risk-averse environment. On Thursday, the US will release the final version of the Q2 Gross Domestic Product, expected to confirm that the economy contracted at an annual pace of 0.6% in the three months to June.
Mullen Automotive (MULN) extended its downward trend as the EV startup stock fell even further below $1 and has become a full-fledged penny stock. On Tuesday, shares of MULN dropped by 2.6% and closed the trading session at a price of $0.33. It was another volatile session on Wall Street as early morning trading made it seem like we were heading toward a positive day for the indices. By the closing bell, the S&P 500 was in the red for the fifth consecutive day and had briefly made new bear market lows. Overall, the Dow Jones lost 125 basis points, the S&P 500 dropped by 0.21%, and the NASDAQ managed to post a small gain of 0.25%.
Mullen Automotive stock price
Electric vehicle stocks were mixed yet again on Tuesday, as the sector continues to trade with no real direction. Tesla (TSLA) saw a boost early in the session as the company reported that it expected a high delivery order for this quarter. Shares of TSLA closed 2.5% higher. Other EV companies in the red included RIvian (RIVN), Nio (NIO), and XPeng (XPEV), while Lucid (LCID) was a rare riser in the sector. The luxury EV maker received an Overweight rating as Cantor Fitzgerald initiated coverage on the stock.
Although Mullen is kicking off its tour to promote the upcoming launch of its FIVE Crossover EV, the company will likely need its delivery truck business to take the lead for now. The FIVE Crossover is still expected to be ready in 2024 at the earliest, so until then Mullen will need to rely on its partnership with DelPak Logistics and will be competing with the likes of Rivian for more customers.
MULN performance for 9/29/22
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