MULN Stock Forecast: Mullen Automotive slips lower as Tesla price target downgrade stalls EV stocks

MULN fell by 5.5% during Thursday’s trading session.
Tesla receives a price target downgrade ahead of its quarterly deliveries report.
The State of New York will ban the sale of new gas cars by 2035.

Stocks Reporter FXStreet

Mullen Automotive (MULN) reversed course from Wednesday’s session and fell back down toward its all-time low price of $0.32. On Thursday, shares of MULN dropped lower by 5.5% and closed the trading day at a price of $0.34. Stocks continued lower after a brief one-day rally on Wednesday as the S&P 500 closed at a fresh low price for 2022. All three major averages fell back into the red on Thursday as selling pressure intensified following a rare downgrade for Apple (AAPL) stock. Overall, the Dow Jones lost 458 basis points, the S&P 500 dropped by 2.1%, and the NASDAQ fell by 2.8% during the session.

Mullen Automotive stock price

Electric vehicle stocks were back on the decline as the industry leader received a downgrade from a major Wall Street analyst. Tesla (TSLA) sank by 6.8% on Thursday as Piper Sandler analyst Alex Potter downgraded the firm’s price target for the stock to $340. The price downgrade came from Potter re-assessing the upcoming quarterly deliveries report from the company, as he lowered his estimate from 380,000 to 354,000. Along with the broader market sell-off, EV stocks slumped as Rivian (RIVN), Lucid (LCID) and Nio (NIO) all suffered heavy losses.

As the global push for the automotive industry to shift to electric vehicles continues, the State of New York has expedited its transition. On Thursday, the state announced that it is banning the sale of new gasoline cars as of 2035. The announcement comes on the heels of California announcing the same timeline last month, and it can only be seen as a positive for EV makers like Mullen.

MULN stock performance 9/29/22

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Stocks Reporter

FXStreet

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