- NASDAQ: MULN fell by 3% during Thursday’s trading session.
- Mullen faces rising costs as it ramps up its production plans.
- EV stocks rally as market shrugs off September CPI report.
UPDATE: MULN stock surpisingly added 1.2% to advance to $0.2430 in the first hour of Friday's session. Earlier in the session Mullen stock made it up to a session high of $0.2680. This is made more impressive by the fact that the Nasdaq is off 1.8% at the same time. If Mullen Automotive stock can hold onto this gain, then it will snap its seven-session drought. The beleagured EV stock has not been doing well since it spent over $90 million on the assets of bankrupt Electric Last Mile Solutions. The market seems to think that Mullen will need to greatly further dilute shareholders in order to reach profitability. The company will almost certainly also need to perform a reverse stock split in order to meet Nasdaq rules that prohibit stocks from trading under $1.
Mullen Automotive (MULN) extended its recent losing streak to seven straight days despite a historic market rebound during intraday trading. On Thursday, shares of MULN fell by a further 3% and closed the trading session at a price of $0.24. Following a higher-than-expected inflation reading from the CPI report, stocks reversed course and pulled a stunning bounce off multi-year lows. All three major averages surged higher as the S&P 500 snapped its recent six-day losing streak. Overall, the Dow Jones added 2.8%, the S&P 500 gained 2.6%, and the Nasdaq rallied by 2.2% during the session.
Mullen Automotive stock price
Mullen is facing a multitude of problems with its core business, not the least of which is raising capital to roll out production plans. The company has also diluted its stock from 51 million shares to over 500 million shares in the span of fewer than two years. This dilution has contributed to the stock price tumbling by more than 90%. With anticipated costs rising in the near future and a significant sum of money just spent on acquiring Bollinger Motors and Electric Last Mile Solutions, Mullen is certainly going to need to come up with another way to raise further capital.
Electric vehicle stocks rallied alongside the broader markets on Thursday. Tesla (TSLA) gained 2.1% after the stock reached oversold territory following its recent sell-off. Other EV stocks on the rise included Rivian (RIVN), Ford (F) and General Motors (GM), while Lucid (LCID) and Nio (NIO) found themselves trading below water.
MULN 5-minute chart 10/13/22
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