Thus far on Friday, there doesn’t appear to be a similar level of volume as Thursday. Support remains at $0.10.
Mullen Automotive FAQs
MULN daily chart
Then again, penny stocks just trade differently. At least MULN stock momentarily broke above the 21-day Simple Moving Average (SMA). It needs to close above that SMA in order to return to an uptrend.
Mullen Automotive is a publicly-traded development-stage electric vehicle company based in Brea, California that typically uses outside partnerships to manufacture its vehicles. The company was founded in 2014 and currently sells self-designed electric delivery vehicles. Besides its commercial offerings, Mullen plans to begin manufacturing its Mullen FIVE EV crossover in late 2024 or early 2025. Mullen Automotive went public on the NASDAQ exchange through a reverse merger in late 2021.
Usually, a lower reading would be worrying to the stock market, but this time the market is taking it as a reason to rejoice. While Fed Chair, Jerome Powell, remained open to another rate hike later this year he has hinted that further disinflationary data would make such a move less necessary.
The US Nonfarm Payrolls data came in below expectations. This was largely seen as positive by the equity market as it makes a September interest rate hike by the Federal Reserve (Fed) somewhat less likely, and higher interest rates hurt businesses by increasing borrowing costs.
Mullen stock news: Nonfarm Payrolls reduce chance of September rate hike
منبع: https://www.fxstreet.com/news/mullen-automotive-stock-forecast-muln-sells-off-as-nonfarm-payrolls-surprise-202308041314
US Nonfarm Payrolls for July came in at 187K, below the 200K expected by analysts. Additionally, the previous month’s 209K was revised down to 185K.
This month’s NFP unveiling certainly did that. The so-far tight labor market had concerned Fed officials in that it could imply the making of a wage-price spiral. Although the headline NFP figure missed estimates, the US Unemployment Rate for July did tick lower from 3.6% to 3.5%, and wage gains also did not help the picture so much. This might be why the market is somewhat tentative about the results.
In point of fact, the Average Hourly Earnings reported as part of the NFP remained flat with June at 0.4% MoM and 4.4% YoY. Analysts had expected these figures to fall slightly in July’s reading.
Mullen stock news: Shareholder meeting rumors
Through a partnership with Randy Marion Automotive Group, Mullen distributes its Mullen One delivery van that has an electric range of 110 miles. Through an agreement with a Chinese manufacturer and distributor based in Ireland, the company also distributes the Mullen-GO Commercial Urban Delivery EV in Europe. In July 2023, Mullen will begin commercial production at its facility in Mississippi of its Class 3 EV Cab Chassis long-haul truck for immediate delivery. Through its 60% ownership stake in Bollinger Motors, Mullen will also reap the benefits of that company’s B1 SUV and B2 pickup truck, as well as other commercial vehicles in the future. The Mullen FIVE crossover vehicle is not slated for production until at least late 2024, but it is already taking reservations.
Mullen Automotive (MULN) stock slumped nearly 10% on Friday despite the broader averages advancing at a healthy clip. The poor showing comes a day after MULN stock added 12%, closing at $0.1365.
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Mullen has been diluting its stock since going public in late 2021. This is because the company as of yet currently has little revenue from operations and no profits. The stock has fallen over 99% since the company’s reverse merger in November 2021, and the rapid dilution is mostly to blame. Taking into account Mullen’s 1-for-25 reverse stock split on May 4, 2023, Mullen had 33,338,727 shares outstanding on September 30, 2022, but 126,281,274 shares on March 31, 2023. The company is allowed to sell up to 200 million shares under current authorization.