MULN Stock News: Mullen Automotive plummets 16% on credibility issue

Update: NASDAQ: MULN plunged 16.02% to hit two-month lows of $0.79 on Wednesday, only to end the fateful day at $0.80. Despite the upbeat remarks from the American electric car company CEO David Michery, boasting Mullen Automative’s progress, investors were unwilling to buy his positive outlook on the company, as the company continues to face the credibility challenge. Adding to the downside in the MULN stock price, hotter US CPI triggered a broader market sell-off, as the upbeat data revived 75 bps June Fed rate hike expectations.

NASDAQ:MULN narrowly remained above $1.00 during Monday trading, as the selling pressure on growth stocks continued into another week. Shares of MULN dropped by 10.0% and closed the bearish session at $1.08. Investors hoping for a reprieve from the ongoing market correction were sorely disappointed on Monday, as all three major indices hit their low points of the year so far. The Dow Jones tumbled by a further 653 basis points, while the S&P 500 dropped by 3.2%, and the NASDAQ plummeted by 4.29% during the session.

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Electric vehicle stocks extended their declines on Monday as the sector continued to succumb to the ongoing market weakness in growth stocks. Industry leader Tesla (NASDAQ:TSLA) dropped by a further 9.07% and fell below the $800 price level. Its market cap has now slid from above $1 trillion to just above $800 billion over the past couple of weeks. Other EV stocks that were in decline include Nio (NYSE:NIO), Lucid (NASDAQ:LCID), XPeng (NYSE:XPEV), Li Auto (NASDAQ:LI), and Rivian (NASDAQ:RIVN.

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The stock of another EV startup, Rivian, fell by 20.9% during Monday’s session, as one of its largest initial investors sold a major stake in the company. Ford (NYSE:F) dumped 8 million RIVN shares during the market sell off, although the legacy automaker still owns somewhere in the neighborhood of 100 million shares. It is rumored that JPMorgan Chase is also going to sell between 13 and 16 million shares of RIVN for another unknown seller.

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Update: NASDAQ:MULN finished Wednesday at $0.80 per share, down 16.02%. US equities aimed to recover ground but failed miserably as US inflation held near multi-decade highs, cooling down hopes for easing price pressures. The Nasdaq Composite was the worst performer, losing 386 points or 3.29%. The Dow Jones Industrial Average finished the day 1.02% lower, while the S&P 500 lost 1.72%. Wall Street has been on the backfoot for a fifth consecutive trading day, with no signs of changing course in the near term. 

Update: Mullen Automotive has tanked another 6.8% in Wednesday's mid-morning trade. The speculative stock trades at $0.8878 at the time of writing. Shares have changed hands for as low as $0.8510 and as high as $0.93 on Wednesday. Despite a poor CPI print to start the trading day, the Nasdaq has now reversed course and is up 0.5% after starting the day down more than 1%. This may lead MULN shares to attempt a rally of their own around. More traders will pile in if MULN stock can surmount $0.93.