Monday, December 12, 2022 10:54:50 PM
It may not come to fruition, but bulls are looking for a short squeeze in MULN stock
7h ago · By Bret Kenwell, InvestorPlace Contributor
-Mullen Automotive (MULN) has been crushed this year, with MULN stock down 96%.
-However, investors are now speculating about a potential short squeeze in the stock.
-While it’s hardly a guarantee one will come, keep in mind that shares nearly tripled at one point in October.
MULN stock - Is a Giant Short Squeeze Coming for Mullen (MULN) Stock?
Source: Ringo Chiu / Shutterstock
Shares of Mullen Automotive (NASDAQ:MULN) have been trending for weeks. That’s as investors anxiously await an update from the company on deliveries and production. It’s also as traders speculate about a potential short squeeze in MULN stock.
Meanwhile, several electric vehicle (EV) stocks have been struggling lately. Tesla (NASDAQ:TSLA) recently hit 52-week lows as investors juggle CEO Elon Musk’s takeover of Twitter. Lucid Motors (NASDAQ:LCID) continues to grind out new lows, while Rivian (NASDAQ:RIVN), Fisker (NYSE:FSR) and others continue to struggle.
Chinese EV stocks like Nio (NYSE:NIO) and Li Auto (NASDAQ:LI) have done well over the past few weeks. Overall, though, EV stocks have struggled this year.
As for MULN stock, it has been far from spectacular this year. Shares made a new 52-week low on Dec. 7 at 18 cents. Year to date, the stock is down more than 96%. That’s not typically a recipe for a winning stock pick.
Short Squeeze on Deck for MULN Stock?
When a stock is hated and the sellers are in control, it’s like sharks smelling blood in the water. Investors continue to pile in on the short side, looking to squeeze every drop of profit out of the stock as its share price falls.
The bulls’ misery is a playground for the bears.
However, there are times when the scale becomes so unbalanced, it causes what’s known as a short squeeze. Put simply, when too many traders are holding a short position in a certain security and the price of that security begins to rally significantly, it triggers a wave of buying. That happens as both natural buyers — the bulls — buy the stock and as shorts have to buy to cover their position.
Now some are starting to speculate that could happen in MULN stock.
MarketWatch data shows a short interest of 47%. However, other sites only suggest a short interest of 10% to 12%. That said, the Nasdaq shows about 175.5 million shares sold short as of Nov. 30. As of the most recently filed 10-Q, the company had about 376.7 million shares outstanding.
Regardless, it typically helps when there is a catalyst or event to help trigger a short squeeze. Could that be the company’s proposed reverse stock split? Maybe, but perhaps not likely. Further, the company has already closed on its deal for Electric Last Mile Solutions.
Remember that in October, MULN stock nearly tripled in just a couple of trading sessions. That came after news that it gained exclusive distribution rights to I-GO EV in Europe. Will similar price action happen again? Who knows, but it is possible under the right circumstances.
Recent MULN News
- Bollinger Motors Announces Sale of 50 Bollinger B4 Chassis Cabs to EnviroCharge • PR Newswire (US) • 05/22/2024 01:15:00 PM
- Mullen Announces Bollinger Motors Sale of 50 Bollinger B4 Chassis Cab EV Trucks to EnviroCharge • GlobeNewswire Inc. • 05/22/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:34:27 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:31:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:31:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:29:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:29:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:28:40 PM
- Form S-1 - General form for registration of securities under the Securities Act of 1933 • Edgar (US Regulatory) • 05/20/2024 09:19:23 PM
- Mullen Continues Commercial EV Dealer Expansion in Midwest with Ziegler Truck Group and Pacific Northwest with Range Truck Group • GlobeNewswire Inc. • 05/15/2024 01:00:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/14/2024 08:39:58 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/14/2024 06:57:19 PM
- Mullen Reports Q2 2024 Fiscal Quarter Results • GlobeNewswire Inc. • 05/14/2024 06:00:00 PM
- Mullen Announces $150 Million Financing Commitment • GlobeNewswire Inc. • 05/14/2024 01:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 04:00:17 PM
- U.S. Department of Commerce Approves Mullen’s Tunica, Miss., Facility as Foreign Trade Zone • GlobeNewswire Inc. • 05/09/2024 01:00:00 PM
- Bollinger Motors Taps Amerit Fleet Solutions for Mobile Service & Warranty for the Company's B4 All-Electric Class 4 Commercial Truck • PR Newswire (US) • 05/07/2024 01:30:00 PM
- Mullen Announces Bollinger Motors Taps Amerit Fleet Solutions for Mobile Service and Warranty for the Company’s B4 All-Electric Class 4 Commercial Truck • GlobeNewswire Inc. • 05/07/2024 01:00:00 PM
- Form 8-A12B - Registration of securities [Section 12(b)] • Edgar (US Regulatory) • 05/06/2024 02:08:33 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/06/2024 02:00:49 PM
- Mullen Signs Agreement with California Based and HVIP Approved, National Auto Fleet Group • GlobeNewswire Inc. • 05/06/2024 01:15:00 PM
- Mullen Announces Adoption of Limited Duration Stockholder Rights Plan • GlobeNewswire Inc. • 05/06/2024 01:00:00 PM
- Pritchard EV and Mobile Road Service Solutions Debut All Electric Mullen ONE Roadside Assistance Vehicle at American Towman Showcase in Las Vegas • GlobeNewswire Inc. • 05/02/2024 01:00:00 PM
- Mullen Adds One of the Largest US Commercial Dealers, Pritchard EV, to Dealer Network • GlobeNewswire Inc. • 05/01/2024 01:00:00 PM
- California Issues HVIP Approval, Granting Mullen’s Class 3 EV Trucks a $45,000 Cash Voucher Per Vehicle Sold • GlobeNewswire Inc. • 04/29/2024 01:00:00 PM
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