Mullen Automotive (NASDAQ:MULN) stock continues to fall despite several positive developments happening with the company.
MULN shares fell to $0.10 on Thursday, closing at $0.11.
Prices have slid more than -22% in the past trading week and more than -64% this year-to-date after shares rose in January from $0.32 to $0.44.
Today’s trading marked the company’s new 52-week low.
The latest developments in Mullen Automotive have been very positive for the company, but prices have continued to tumble.
This week, Mullen Automotive received the distribution rights to their K50 Dragonfly EV supercar.
Shares momentarily rose 2.5% before coming back down.
The company won license for IP and exclusive distribution rights in North and South American markets for the Qiantu K50/DragonFLY.
“This agreement with Qiantu is an important milestone for the company, said Mullen’s CEO and Chairman David Michery, adding that “since day one, we have received overwhelming positive feedback for this vehicle, including our original debut at the 2019 New York Auto Show and the Indy 500 in May 2019.
We are excited to start the GT and GTRS programs on March 20, 2023.”
Mullen Automotive will work to re-engineer the product to meet U.S. standards with final assembly in Mishawka, Indiana.
The EV supercar will be rebranded and refreshed to sell under the Mullen GT & GTRS brands with expected performance specs of 0-60 MPH in 1.95 seconds and a top speed over 200 MPH.
Other Positive MULN Stock News
Just last week, Mullen Automotive confirmed the delivery of 6,000 Class 1 EV cargo vans valued at $200 million by the end of March 2023.
Mullen Automotive CEO David Michery released the official statement on the company’s website — a positive development shareholders have been waiting for since December of 2022.
The company also reported in their statement that as of Feb. 28, 2023, Mullen has $87,400,009 of cash and cash equivalents, including restricted cash, and Mullen expects to receive an additional $110 million from firm commitments by June 1, 2023.
“I believe we have all the pieces in place between our product, factories, and strategic expertise to execute on our plans to deliver our Class 1 and Class 3 vehicles this year,” said David Michery, CEO and chairman of Mullen Automotive.
“Furthermore, we continue to invest and move at a fast clip with the Mullen FIVE program, which will soon be approaching vehicle engineering freeze, allowing us to move into the next phase of the crossover program.”
In December, Mullen Automotive received a $200 million purchase order for 6,000 of its Class 1 EV cargo vans by RMA group.
Randy Marion Automotive Group is one of the largest and most respected commercial vehicle dealer groups in the U.S.
“We see a tremendous opportunity with the Mullen commercial portfolio, and the launch of the commercial van could not come at a better time,” said Randy Marion, CEO and founder of RMA. “There’s significant pent-up customer demand for Mullen to fulfill. I have many customers looking at me to find product for their companies.”
Why is MULN Stock Dropping?
With all of these positive developments in Mullen Automotive, why is MULN stock dropping?
Afterall, investor sentiment remains bullish.
Since the beginning of the year, we’ve seen call options dominate put options in the derivatives market indicating bullish bets.
New retail investors have even flocked to buy shares of the company due to several positive developments in the company.
So, why is MULN stock dropping?
Investors of the company believe Mullen Automotive has become a target of naked short selling, a manipulative strategy that allows market makers and hedge funds to short a stock without actually borrowing the stock from a lender.
Aside from positive news and bullish sentiment among investors, MULN stock has seen a massive increase in FTDs this year, another indication of naked short selling in a stock.
FTDs, or Failure-to-deliver occurs when one party in a trading contract (whether it’s shares, futures, or options) fails to deliver on their obligations.
These failures derive due to buyers not having enough money to take delivery and pay for the transaction at settlement.
In the case of sellers, it means not having the goods to meet that transaction.
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Didn’t Mullen have the Dragonfly then lose it after they just stopped paying the contract? It seems every time good news breaks, right around the corner follows contradictory news. David’s a much better hype man than a ceo. I won’t believe anything until I start seeing actual cars leaving the Mississippi facility.
Not sure why the stock is dropping in value, those developments normally would launch a stock . So, most likely something indeed is happening behind the scenes. Be that as it may , eventually it’s going to launch and will just continue to accrue more shares at these reasonable prices . Your thoughts?
It’s hard to say, something is definitely happening behind the scenes. I wouldn’t put more money than I can afford to lose on this play. MMTLP community lost everything from delisting. This is the worst case scenario for MULN. Best case scenario, this stock finally shoots up to $1+.
Frank is that official that everyone who was in MMTLP has lost there money? I am in that
play and have not heard anything. Thanks for any insight you can share.
Isn’t the CEO diluting the stock as well, that’s a reason why the price could be dropping. This CEO has made promises after promises and there is still nothing to show
I’ve seen this floating around. Time is ticking.
Leave your thoughts below.