Mullen Automotive: Electrifying Rally But Tread With Caution


  • Mullen has rallied from its November 2022 lows on the back of a raft of soft operational developments.
  • The company’s Form-10K, quietly released ahead of a 3-day weekend, paints a dire picture for the near-term future of the EV upstart.
  • With the shareholder vote to increase its outstanding shares to 5 billion from 1.75 billion passing, current longs are set for dilution.
  • This is as the current liquidity position at $54.1 million is insufficient to meet near-term capex needs.
Small retro car with electric cable.

zoff-photo/iStock via Getty Images

Mullen Automotive (NASDAQ:MULN) is rallying strongly after a near year-long decline of its commons. The reasons for the decline were clear; cash burn, dilution, and rising Fed fund rates. However, this narrative is quickly changing, especially from a macro perspective. Interest rates are only set for two

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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