By 
Mullen Automotive’s stock price has been in a steep decline throughout 2022 due to ongoing concerns about the company’s future. On Friday, the stock was trading at $0.3322, representing a drop of over 98% from its all-time high. The short interest in the stock has risen to 41.51%, indicating that many investors believe the shares will continue to fall.
The electric vehicle (EV) industry has experienced significant growth in recent years, disrupting the traditional automotive industry dominated by companies like Toyota, General Motors, and Volkswagen. Today, companies such as Rivian and Lucid have market valuations exceeding $20 billion.
This rapid growth has attracted numerous entrepreneurs eager to capture a share of the market. Some of the most notable emerging EV brands include Nio, Lordstown Motors, Nikola, and Fisker Automotive.
However, in any rapidly growing industry, there are always those with questionable intentions. We’ve seen this in the cryptocurrency space with figures like Do Kwon and FTX’s Sam Bankman-Fried. Similarly, the EV industry has witnessed several companies, including Canoo, Arrival, and Nikola, becoming embroiled in controversies.
Mullen Automotive has also found itself entangled in such issues. A few months ago, Hindenburg Research, which previously exposed Nikola, published a report on Mullen. The report claimed that Mullen was not actually an EV manufacturer but rather a trading company that buys Chinese vehicles and rebrands them.
Mullen has denied these allegations and has taken steps to strengthen its portfolio by acquiring the Electric Last Mile Manufacturing plant and Bollinger. The company has also secured several large orders from a Fortune 500 company. Despite these moves, analysts remain concerned about Mullen’s growth prospects and the risks of stock dilution.
Mullen’s share price has been in a pronounced downtrend over the past few months, plummeting by more than 98% from its peak. The stock remains well below all key moving averages, and the stochastic oscillator has moved to a neutral position. Additionally, the stock has formed a small double-bottom pattern with a neckline at $0.6030.
In the short term, there is potential for a bullish breakout, with the next key level to watch at $0.6030. However, in the longer term, the stock is likely to continue its decline due to the significant challenges the company faces.