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The MULN stock price continues to face significant pressure as demand dwindles and short interest increases. Mullen Automotive shares are currently trading at $0.2632, a steep drop from last week’s high of $0.6030. This marks a decline of over 95% this year, bringing the company’s market capitalization down to around $137 million.
Mullen Automotive is a relatively small player in the electric vehicle (EV) industry, focused on building vehicles in the United States. The company is involved in both the manufacturing of EVs and the development of solid-state batteries, which are believed to offer superior performance.
One of Mullen’s key products is the Mullen Five, an EV with a range of 325 miles and a top speed of 155 miles per hour. The car can accelerate from 0 to 60 mph in just 3.2 seconds. In October, Mullen launched a tour to showcase the vehicle, with plans to start manufacturing in the coming months.
In addition to the Mullen Five, the company acquired Bollinger Motors, a manufacturer of medium-sized trucks in the U.S. Mullen paid $148 million in cash and stock for a 60% stake in the company. Bollinger currently has about 50,000 reservations for its B1 and B2 vehicles.
Mullen also purchased Electric Last Mile Solutions (ELMS) out of bankruptcy, gaining valuable intellectual property and a manufacturing plant. Last week, the company secured $150 million to fund this acquisition. The CEO commented that the acquisition consolidates critical assets and positions Mullen to become a leader in the emerging EV market.
However, there are concerns about Mullen’s financial future. The company will likely need to raise substantial funds—potentially millions or even billions of dollars—to bring its vehicles to market. Companies like Tesla and Rivian have spent billions in recent years to achieve this. As a result, Mullen may have to either dilute its shareholders or turn to expensive debt markets for fundraising.
The daily chart shows that Mullen’s share price has been in a strong bearish trend for several months, falling from an all-time high of $18.9 to just $0.30. The stock has dipped below a key resistance level at $0.5165 and remains under all moving averages, with the Relative Strength Index (RSI) dropping below the neutral point of 50.
Given these factors, the MULN stock price is likely to continue its decline, with sellers potentially targeting the key support level at $0.200. A move above the resistance at $0.3435 would challenge this bearish outlook.