MULN Stock Forecast: Mullen Automotive bears eye a deeper correction to the $0.5330s

UPDATE: MULN stock dumped into a key support area as per the daily chart, taking on the W-formation's neckline near 0.5380. In doing so, this leaves a bearish bias for the end of the week as stocks bleed out. A raft of economic data from the US failed to alter the expected course of aggressive tightening by the Federal Reserve as traders fret over the prospects of a global recession. Data of late has cemented the likelihood of another 75 basis-point interest rate hike from the Fed at the conclusion of next week's monetary policy meeting. At this juncture,  the bulls need to defend critical support at an hourly 61.8% Fibonacci level that guards 0.5330s a 78.6% ratio,

MULN stock added 4% to trade up to $0.5525 at the start of the session on Thursday, September 15. Just before the open, Mullen announced new details about its crossover model, the Mullen FIVE RS. Calling it an "ultra-high-performance EV sport crossover", Mullen said the FIVE RS will feature 1,000 horsepower, a two-speed gearbox and a top speed of 200 miles per hour. They also said it can achieve 0-60 MPH in 1.9 seconds. “The Mullen FIVE RS is an extremely high-performance EV and intended for those who especially enjoy track/high-performance driving,” said Calin Popa, president of Mullen Automotive. Due to its dangerously high speed, those who have already made reservations for the FIVE RS will only be allowed to ride along with professional sports car drivers rather than drive the vehicles themselves at Mullen's cross-country test-drive tour this fall.

NASDAQ:MULN extended its slide on Friday as the EV start up continued to see a sell off following its recent acquisition. Shares of MULN tumbled by a further 7.57% and closed the trading week at a price of $0.56. The stock is dangerously close to hitting its 52-week low price of $0.52. All three major averages rose for the third consecutive day in this holiday-shortened week, as investors continued to shrug off talks of another 75 basis point rate hike later this month. Overall, the Dow Jones added 377 basis points, the S&P 500 gained 1.53%, and the NASDAQ rose higher by 2.11% during the session.

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Investors have not reacted positively to Mullen’s recent acquisition of a controlling stake in Bollinger Motors. The stock has fallen considerably since the announcement was made Thursday morning. For a startup company that is already battling financial issues and will need a large amount of cash to begin production this fall, investors are likely thinking that money could have been used for a better purpose. Considering Mullen has a market capitalization of $287 million, a purchase of $148 million might seem a little extravagant. Time will tell if the investment will pay off for Mullen.

Mullen stock price

Tesla (NASDAQ:TSLA) had one of its best trading days in a while as the EV industry leader gained 3.60% on Friday. The reason? Tesla is looking into building its own Lithium refinery plant in Texas which could be open as soon as 2024. Lithium is one of the main components in electric vehicle batteries, and Tesla has complained in the past about the market being dominated by China.

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