MULN Stock Forecast: Mullen Automotive sinks below $1.00 despite reducing its debt

NASDAQ:MULN fell by 8.32% during Tuesday’s trading session.
Mullen Automotive announces it has eliminated $17.5 million in debt.
Tesla is set to shut down some of its factories to upgrade production capacity.

Stocks Reporter FXStreet

NASDAQ:MULN kicked the shortened July 4th week off on the back foot as the EV startup stock slid back beneath the $1.00 price level. On Tuesday, shares of MULN sank by 8.32% and closed the trading session at $0.99. The closing price is the first time Mullen has traded below $1.00 since May.

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Stocks rallied on Tuesday on the strength of mega-cap tech stocks. The Dow Jones was the laggard, posting a 129 basis point loss, while the S&P 500 and the NASDAQ rose by 0.16% and 1.75% respectively during the session.

Mullen Automotive announced on Tuesday through a press release that it has reduced its total debt by nearly $17.5 million. This brings the company’s outstanding debt to about $11 million, which is a third of the total debt the company had on its balance sheet at the end of 2021. Mullen has been doing an excellent job of strengthening its financial position, as the EV maker ramps up production of its FIVE crossover EV model that is set to hit the US markets in 2024.

Mullen stock price

In other EV news, Tesla (NASDAQ:TSLA) has announced that it will be temporarily closing down several of its GigaFactories to be re-fitted for increased production efficiency. The closures will start with Shanghai and Berlin in July. The upgrades to the production facilities could apparently have capacity doubled by August of this year, as Tesla tries to recover from a slow second quarter this year. Shares of TSLA closed the session higher by 2.55%.

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Stocks Reporter

FXStreet

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