MULN Stock News: Mullen Automotive corrects nearly 10% after Monday’s explosion

NASDAQ: MULN pulls back after gaining as much as 50% during Monday’s trading.
Mullen management releases the CarBuzz article that highlights its FIVE crossover EV.
EV stocks tumble for a variety of reasons to start the week.

Stocks Reporter FXStreet

Update: Shares of Mullen Automotive corrected 9.60% on Tuesday to finish at $1.60, giving up the $2 threshold. The 10% correction doesn’t seem to be extensive, especially after the stock price exploded roughly 50% in Monday’s trade. The stock price rocketed after the company and its electric crossover vehicle called the Mullen FIVE were featured on automotive news site CarBuzz. However, the rally fizzled out, despite the positive performance of Wall Street indices, as falling oil prices lifted the overall market mood. The focus now shifts towards the Fed decision amid mixed headlines on the Russia-Ukraine war.

NASDAQ:MULN is attempting to post a comeback after the electric vehicle startup’s shares tumbled during the first quarter of 2022. On Monday, shares of MULN soared by 31.1% and closed the trading day at $1.77. While it seems like a major gain, Mullen’s stock is still down by 70% so far in 2022 and 86% over the past 52-weeks. One positive day hasn’t erased the pain that shareholders have felt while holding Mullen’s stock all the way down. The broader markets began the week on the backfoot as the S&P 500 and NASDAQ both fell as investors sat patiently, awaiting the impending Fed interest rate hike.

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What was the source of Mullen’s sudden gains on Monday? Management put out a news release that featured CarBuzz’s article that highlighted Mullen’s FIVE crossover EV. The article is actually from a month ago, but Mullen is reminding investors of what the industry thinks of its new vehicle. Expectations are high for Mullen after it won the Top Zero Emission SUV award at last November’s Los Angeles International Auto Show. Can Mullen compete with the long list of EV startups? Only time will tell as the company begins to prepare for production by the end of 2023.

MULN stock forecast

As we await the Federal Reserve to raise interest rates, EV stocks continued to nosedive on Monday. Industry leader Tesla (NASDAQ:TSLA) fell a further 3.64%, while Lucid (NASDAQ:LCID) and Rivian (NASDAQ:RIVN) dropped by 5.98% and 5.83% respectively. Meanwhile Chinese EV makers also tumbled as the country reinstituted a new coronavirus lockdown. Shares of Nio fell a further 12.26% during the session.

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FXStreet

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