MULN stock price has been in a freefall in 2022 as concerns about the company continued. Mullen Automotive’s shares were trading at $0.3322 on Friday, meaning they have crashed by over 98% from their all-time high. Its short interest has jumped to 41.51%, meaning that many investors still believe that the shares will continue falling.
The electric vehicle (EV) industry has done well in the past few years. It has managed to disrupt the traditional vehicle industry that was dominated by the likes of Toyota, General Motors, and Volkswagen. Today, companies like Rivian and Lucid are valued at over $20 billion.
The sector’s growth has attracted many entrepreneurs who hope to gain market share in the industry. Some of the top upcoming EV brands are Nio, Lordstown Motors, Nikola, and Fisker Automotive among others.
In a new industry that is showing strong growth, many people with ill intentions will always be around. We saw that in the crypto industry with Do Kwon and FTX’s Sam Bankman-Fried. In the EV industry, we have seen tens of companies like Canoo, Arrival, and Nikola being engulfed in a crisis.
Mullen Automotive has also been caught in this mess. A few months ago, Hindenburg Research, who exposed Nikola published a report on Mullen. In it, he claimed that the company was not an EV manufacturer. Instead, it buys Chinese vehicles and brands them, making it a trading company.
Mullen has denied these allegations and boosted its portfolio by acquiring Electric Last Mile Manufacturing plant and Bollinger. It also received several large orders from a large Fortune 500 company. Still, analysts are concerned about the company’s growth and dilution risks for the stock.
The MULN share price has been in a strong bearish trend in the past few months. Its shares have collapsed by more than 98% from its all-time high. The stock remains significantly below all moving averages while the stochastic oscillator has moved to the neutral point. It has also formed a small double-bottom pattern whose neckline is at $0.6030.
Therefore, the stock will likely have a bullish breakout in the near term. If this happens, the next key level to watch will be at $0.6030. In the long term, however, the stock will likely continue falling since the company faces significant challenges.
This post was last modified on %s = human-readable time difference 05:56