New data from Ortex shows MULN short interest has risen to 125.54%, a rarity that has only happened 15 other times.
Mullen Automotive (NASDAQ:MULN) went through a 1-for-25 reverse stock split on Thursday; an effort to comply with Nasdaq’s $1 bid requirement.
Shares plunged the day of the announcement but have recovered to trade just above $1.50 on Friday morning.
It’s uncommon for a stock to have a short interest above 100%, which signifies overleveraged short positions in a security.
Before GameStop squeezed in 2021, retail investors on Reddit noticed the stock had a 140% short interest rate.
They piled in to buy the stock causing shares to rise and short sellers to close their positions before facing bigger repercussions.
Analysts at Goldman Sachs later noted that short interest exceeding 100 percent of a company’s public had only occurred 15 times in the prior 10 years, this is the 16.
What does this mean for MULN stock?
Will it squeeze like GameStop?
It certainly has the ability to, however, squeezing short sellers would require big buying pressure, as seen in GameStop and AMC for example.
The second biggest challenge is dark pool abuse.
Data shows 70% of trading in MULN stock has happened in dark pools, which suppresses retail demand in the lit market.
A MULN short squeeze may be on the horizon, but it’s going to take significant buying power to trigger it.
Latest MULN Stock News
Mullen Automotive has had many positive developments this year despite its falling share prices.
The company has announced big EV updates and a new $263 million purchase order for both Class 1 and Class 3 EVs from Randy Marion Automotive Group.
The company also reported that as of April 30, 2023, the cash available for Company operations was $116.1 million.
Production of the Mullen Five is scheduled to begin in the fourth quarter of 2023, per Mullen’s official announcement.
Once the FIVE goes into full-scale production, buyers will be contacted by a Mullen representative with a more definite delivery date, currently estimated to be in the second quarter of 2024.
Mullen Automotive will be building the new vehicle at their Tunica, MS factory and will be delivering vehicles to the closest Mullen Lounge Point for customer pick up.
The company will arrange to ship vehicles directly to customers if ordered online.
In April, Mullen Automotive announced that it would be opening an investigation into the possibility of the manipulation and illegal shorting of MULN stock.
“These steps include retaining outside counsel, which is working with Shareholder Intelligence Services LLC (“ShareIntel”) to undertake a comprehensive analysis of data derived from broker-dealers, clearing firms and other sources to provide actionable intelligence on potential market manipulation and illegal short selling,” the company said.
$10 Billion Saudi Arabia Contract Rumor
Global EV Technology founder Lawrence Hardge says Mullen Automotive has a $10 billion contract with Saudi Arabia.
“This is not what somebody said or what you heard, this is reality.
$10 billion contract with Saudi Arabia.
And more to come … Mullen and Lawrence Hardge are here to assist them, they have countries like Yemen, Israel, all of them have joined in to take this technology, and they’re going to produce it in Saudi Arabia and they’re also paying for a manufacturing plant to come to Michigan.
That’s in black and white.
So, the SEC if you’re watching, that’s already agreed upon.”
Mullen Automotive has not officially confirmed the $10bn contract with Saudi Arabia, though we have seen in the past that Mullen will take months before releasing official statements.
If Mullen officially announces a $10 billion contract with Saudi Arabia in the near future, this is going to be huge for the company and investors alike.
MULN’s extremely high short interest shows short sellers are not concerned about these positive developments.
The biggest thing that can happen in Mullen Automotive is a short squeeze to rid the company of opposers.
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About The Author
I never thought something like finance could become so interesting to me. I’m rooting for the success of Mullen, and hope we find more ways to preserve our environment and transportation systems simultaneously.
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