This electric-vehicles manufacturer was born from the acquisition of two motor companies: CODA Automotive and Mullen Motor Cars. In September 2014, the company’s name was changed to Mullen Technologies Inc, and later on November 05, 2021, Mullen Automotive Inc (MULN: US) joined NASDAQ.
Since then, however, the America-based manufacturer and distributor has been subject to bouts of shorting. MULN commenced the year at a closing price of $5.81 but later fell significantly. It closed at $0.61 on February 22, 2022, marking a swooping decline of nearly 89.5%. According to a data study, MULN kickstarted the year with a Market Cap of $0.19 B, which later dived to $24 M on February 25, 2022.
The Short Squeeze
As of March 22, 2022, the stock’s utilization rate is standing at 97.03%. Additionally, MULN has almost 23.9 M shares on loan; its highest number since the start of 2022. From one month ago to the present day, short interest in MULN rose by 189.7% and the short-interest ratio has climbed by 54%.
In addition to this, there have been two cases of insider selling of MULN. These were both by Mullen's President and CEO, David Michery, who made the transactions on January 18, 2022, and March 16, 2022. To sum up, he sold a total of 230,000 for a value of approx. $447,000.
The Plot Twist
In a turn of events, the price of MULN has skyrocketed since then. The stock closed at $3.21 on March 21, 2022. Compared to its closing price on February 22, 2022, the stock rose by an extensive value of nearly 426.2%.
MULN garnered a devoted following online, earning its very own subreddit on January 07, 2022. MULN is also ranking on top of the list of most shorted stocks according to this post. Users and investors are cheering for it, resulting in a short-squeeze.
The price hike and surge in popularity of MULN can be largely attributed to the manufacturing developments within the company. The public has been kept up-to-date on the advancements of Mullen’s polymer battery technology accompanied by the production of the Mullen FIVE EV Crossovers prototype. While the stock had been reduced to a penny stock, it is still garnering favoritism for its work, and thus, dubbed the ‘Tesla Killer’.
The increasing demand for EV vehicles and progressions in technology is also piling up, turning people’s attention to more EV-based stocks. MULN’s fans are rallying for this stock to skyrocket within the year, and 2iQ research will be covering it at every step of the way.