- Summary:
- MULN is down 13.13%, trading at $6.68 after a recent 1-for-100 reverse stock split, Mullen share price is now approaching critical support...
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Mullen Automotive’s stock has again plunged, continuing its sharp decline from earlier this year. Today, the stock is down 13.13%, trading at $6.68 after a recent 1-for-100 reverse stock split, which aimed to avoid delisting from the Nasdaq; with shares sliding, Mullen share price is now approaching critical support levels that could signal what’s next for the struggling electric vehicle maker.
Will the Reverse Split Help Mullen’s Stock Recover?
In spite of the stock’s reverse split, Mullen is still encountering major obstacles. Analysts doubt the lasting impacts of this decision, pointing out the company faces larger challenges such as manufacturing delays and investor weariness. However, some remain optimistic, pointing to Mullen’s Bollinger Motors division and its recent partnerships with Affinity Truck Center and Papé Kenworth.
These strategic alliances could help expand Mullen’s presence in the electric commercial truck market, with the Bollinger B4 truck beginning production in September.
Mullen Automotive Stock Analysis
Looking at the daily chart, (NASDAQ: MULN) has been on a downward spiral since April, where the stock peaked near $800. Since then, the company has lost the confidence of investors as prices steadily declined. In June, the stock broke the crucial $240 support, followed by a dip below $56.64, and now it’s inching toward the $3.63 level. If this trend continues, Mullen could see even lower lows.
Mullen Support and Resistance Key Levels to Watch
Technically, Mullen’s next significant support level is $3.63. If the stock fails to hold this level, the chances of a further collapse increase. On the upside, resistance can be found at $56.64, but given the recent market sentiment, it will take a significant push for Mullen to recover that ground. Investors are eyeing these levels, anticipating whether the stock will stabilize or face additional downward pressure.
Bold Price Predictions: Reality or Overambition?
Some analysts have issued optimistic price targets for Mullen, with projections as high as $23.46 by 2024 . However, such estimates seem ambitious given the stock’s current price of $6.68. In order for Mullen to fulfil these expectations, the company must perform perfectly in achieving its production targets and keep obtaining significant contracts, such as its latest $210 million agreement with Volt Mobility.
What’s Next for Mullen?
With no major developments from Mullen Automotive to trigger a reversal, many investors remain cautious. The broader electric vehicle stocks market faces tough competition, and without any upcoming catalysts, Mullen might continue to struggle in the near term. The stock’s movement remains firmly in bearish territory, with no immediate signs of recovery.