No stock has gained as much popularity across social media chatter as much as Mullen Automotive, Inc. (NASDAQ: MULN) has. Following Friday’s tumble of a downward 16% slide, the stock has managed to bounce back by 7.2% in the premarket. Market participants continue to watch this highly volatile stock, that is under the collective spotlight of traders and analysts alike. The American electric vehicle company, MULN, skyrocketed in the markets in late February. In less than a month its stock exploded in price, ballooning upwards of 430%. MULN eventually had become synonymous with a high wonder stock, bringing delight to its holders. Market bears seem to perceive, MULN has outlived its hype and is on a downward reversal as of present.
Announcing of Strengthened MULN Liquidity Position
One trigger that has caused a sudden surge in MULN price, despite the diminishing hype comes after a recent announcement. Mullen Automotive communicated figures demonstrating its cash equivalents at the end of this quarter. This amounts to $65 million, sufficient for each of Mullen’s development projects and commitments to the end of 2022. The company has added that this boost comes as a result of recent financing initiatives to fund growth. These programs were without a doubt boosted by the MULN hype in the markets, given its enhanced market capitalization. The company further communicated that its current liquidity position is the highest it has ever been in the company’s history.
The announcement holds potential in pushing MULN beyond a mere hype stock, and towards one actually capable of generating value. However, the reason this hype persisted well beyond a month instead of a few days indicates its strong fundamentals. This does offer promise to investors, and the market at large for the growth to not only sustain but persist.
Skepticism regarding MULN
Despite these breakthroughs, social media chatter continues to showcase a moderate degree of skepticism amongst traders. Market participants remain divided on the issue of whether or not MULN is merely a meme stock, or something beyond. These skepticisms are not unsubstantiated, but rather stem from valid concerns. For instance, SEC filings revealed that at the peaks of MULN price, the CEO sold off over 200,000 shares.
MULN, amidst its weakening hype saw a sudden bounce-back over the weekend. This links to a strengthened balance sheet for Mullen, putting its liquidity at over $65 million, a record high. Skepticism continues as to whether this hype will sustain, or is a temporary frenzy.