MULN stock is now the #1 most shorted stock per new data compiled by MarketWatch.
Mullen Automotive has seen it’s price sharply decline over the years due to massive dilution and shorting.
This plunge of its share price has benefited short sellers while destroyed shareholder value and investor confidence in the company.
According to MarketWatch data, a whopping 163% of the company’s float is currently being shorted.
At the time of this writing MULN stock is trading at $0.036.
Latest MULN stock news
On April 1st, Mullen Automotive secured a legal victory in its spoofing case.
The company successfully defeated a motion to dismiss its federal spoofing lawsuit against several significant market players, including IMC Financial Markets, Clear Street Markets LLC, and UBS Securities, LLC.
This landmark decision—rendered by a federal judge in the Southern District of New York—allows Mullen’s allegations of stock manipulation to proceed to the discovery phase, representing a crucial step in the company’s ongoing fight to combat artificially depressed stock prices attributed to high-frequency trading practices.
Mullen’s management alleges that between November 2021 and November 2023, these defendants engaged in activities aimed at manipulating the stock price of Mullen through “spoofing.”
This method involves the placement and immediate cancellation of non-genuine orders meant to create false signals in the market, leading other participants to make hasty selling decisions.
By executing buy orders at artificially lowered prices, the defendants exploited their manipulative practices at the expense of the company and its shareholders.
The court’s ruling affirms that Mullen appropriately identified these actions as beyond the behavior of typical market participants, providing a glimmer of hope for investors who have felt the impact of these alleged manipulations for too long.
Despite the positive news surrounding the ruling, retail investors in Mullen have expressed growing frustration and disillusionment in recent years.
Repeated instances of stock dilution, aimed at raising capital for operations, have significantly eroded shareholder value, leaving investors questioning the company’s financial management.
Mullen’s first quarter in 2025 has revealed stark losses, and the ongoing dilution has damaged trust, leading many to feel betrayed by the very leadership they initially supported.
The company’s strategy to ask for additional funds, often through share issuance, has created an environment where shareholders find their stakes increasingly diluted.
As a result, confidence among retail investors has plummeted, not just in Mullen as a corporation but also in the broader market’s integrity.
Many believe that manipulative trading practices like spoofing only serve to exacerbate a sense of uncertainty and vulnerability.
MULN Short Squeeze
Will MULN squeeze due to it’s massive high short interest?
As seen with GameStop and AMC, it will require retail investors to buy the stock en masse for the price of the stock to surge.
Investor confidence in the company is key here, though sentiment in the company and stock has been exhausted primarily due to the company’s dilution decisions.
At the moment, it is without challenge to compare this to GameStop’s or AMC’s moves during the meme stock frenzy of 2021.
For now, it will be important for retail investors to keep an eye on the stock’s performance, management decisions, and on the company’s spoofing case to rebuild any trust.
When responding to the court’s decision, Mullen CEO David Michery stated, “We are pleased with the Court’s decision and look forward to continuing our fight to protect our company and our shareholders.”
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