Mullen Automotive’s (NASDAQ:MULN) short interest has surged to new highs starting this week.
Ortex is reporting a high short interest of 24.46%, now higher than that of AMC Entertainment’s or GameStop’s short interest data.
Market analyst and portfolio manager of the Omnia Portfolio, Tom Yeung predicted a MULN short squeeze last week.
“Mullen’s recent short-share order imbalance should have short sellers worried.
We’ve seen this story before in other meme stocks.
And the most dangerous thing to assume is that this time is any different,” says Yeung.
“Mullen has a hyperactive options ring that can contribute to a gamma squeeze.
Speculators buying call options generally cause market makers to buy an offsetting leveraged long position in the stock, which means every $1.00 invested in options is much like buying $10 of shares.
That means a short squeeze in Mullen could send shares up anywhere from the $2 range to the $5 range, depending on how many retail investors suddenly hop on board and assuming a squeeze happens in the first place.”
Mullen’s cost to borrow has topped at 250% this week as well, incentivizing short-covering as the cost to borrow the stock rises.
AMC stock rose more than 3,000% when shares rose to their all-time high of $72.
Short interest at the time had dropped from 22% to 14% as share prices soared.
Will MULN Stock Squeeze?
As we’ve seen with both AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME), it’s heavy buying pressure that created a chain reaction of short positions closing all at once.
This is what we’ll need to see from shareholders if we’re to ever see a MULN short squeeze.
The chief investment analyst in a small family office registered in Singapore says that Mullen Automotive should only be seen as a speculative trade for the probability of a ‘short squeeze‘.
“In my opinion, MULN stock can only be a speculative instrument for short-term trading – the only serious risk to my Sell rating is the percentage of shares outstanding sold short.
If MULN experiences even the slightest positive news or the company’s CEO goes public again with a loud statement like the one about solid-state batteries, the stock will most likely experience a strong short squeeze.”
But Mullen Automotive does seem to have something up its sleeves — at least that’s what Global EV Technology founder Lawrence Hardge is leading investors to believe.
Hardge took it to Facebook to confirm new and exclusive details on the Mullen-Saudi deal.
Hardge says his team has been in Saudi Arabia negotiating the final details of the $10B Saudi deal and that they have been finalizing territories.
He also stated that revenues from the Saudi deal would be 10x what Mullen is currently making from its vehicles and commercial program including the $279 million in orders from Randy Marion, and also confirmed they will be building a new battery manufacturing facility under MAEO in the US probably in Indiana or Michigan near to where Mullen already has established facilities.
Latest MULN Stock News
Mullen Automotive announced last week that it has partnered with NRTC Automation for Class 3 assembly and production.
The Class 3 EV truck is scheduled to begin production sometime in July of this year at Mullen’s Manufacturing Center in Tunica, Mississippi.
Mullen’s manufacturing group has partnered with NRTC Automation (“NRTC”) out of Birmingham, Alabama, for Class 3 assembly line installation and integration, which includes all robotics and automation systems for vehicle production.
Recent capital expenditures in Tunica include addition of Automated Guided Vehicles to transport vehicles through assembly stations in the plant, installation of robotics, water test booth and end-of-line diagnostics.
NRTC will support Mullen’s Class 3 operation through launch and also provide ongoing support of the production as Mullen ramps up to meet the full market demand from its commercial customers.
The headcount at the Tunica facility has grown steadily in anticipation of vehicle production. Mullen recently announced the hiring of an additional 35 plant staff to support production start of the Class 3 vehicle program.
Mike Vagi, president of NRTC Automation, said, “Working with Mullen’s team from the beginning of this project, and to be a key team member responsible to bring the Mullen THREE to market is a role that we take very seriously.”
Read: Mullen Announces Successful 2023 Commercial Drive Event
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This company is shrouded in ambiguity, lots of bark and no bite and deception. no wonder its so heavily shorted. this is a gold mine for shorts, after the reverse split, shorts piled in again to get this under $1. Good luck all the longs..
And MULN has been on the NASDAQ Threshold list for months
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