Mullen Automotive (NASDAQ:MULN) stock reached an all-time low of $0.0888 this week and is beginning to bounce from the level; will MULN stock finally begin to go up again?
The stock surged to $0.12 after hours after having a +11.23% gain day on Wednesday.
For a moment, Mullen saw a combined gain of +40%.
Buyers are definitely stepping in, but we’re seeing rejection around the $0.12 level followed by consolidation.
One of two things may happen here.
Either we see further selloffs going into Thursday, causing the stock to plunge, or we see big buyers begin to step in again, breaking above the $0.12 level to retest $0.14 per share.
Pre-market hours will tell us a bit more about the trajectory of where MULN stock could be heading.
A push above $0.12 will demonstrate demand is rising — a result of perhaps some of the latest developments.
Mullen Class 1 EVs were spotted at an RMA Group location this week, a development shareholders have been waiting for confirmation on.
Investors are now waiting for either Randy Marion Automotive or Mullen’s CEO to follow up with an update on the latest 6,000 EV delivery valued at $200 million.
Investors, Tread Cautiously
While Mullen Automotive currently has positive developments in the works, with one of the most exciting one having received the distribution rights to the K50 Dragonfly, the company is still a big target for short sellers.
Because the markets are tailored preferably to better suit hedge funds and market makers, the biggest risk of investing in MULN stock is the possibility of the company getting delisted.
The company managed to avoid delisting with a 180-day extension from Nasdaq, but this doesn’t protect the company from getting shorted down to zero.
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.
The Company believes the combination of cash on hand and expected firm cash commitments provides it with enough capital to execute on its business plan over the next 12 months.
“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.”
The CEO has yet to touch topic on falling share prices other than the company will undergo a reverse stock split to stay compliant with Nasdaq’s rule.
Will MULN Stock Go Up?
As we’ve seen in the past with MULN stock and other retail favorites, big demand has proven to move share prices up regardless of the amount of stock being traded in off-exchanges or dark pools.
Investor confidence may rise if insiders begin to take large positions in the stock — something shareholders have shared on social media they’d like to see.
Although CEO David Michery has been criticized for failing to communicate with shareholders, it’s possible that projects coming to fruition, oppose to just being announcements, will also create the momentum the stock needs to bounce back from its current levels.
Time will certainly tell where MULN stock will be going from here.
Share your thoughts in the comment section below.
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