Mullen Automotive (MULN) stock sees interest grow as October rollout approaches

MULN stock still seeing interest from retail traders as demo vehicles come due.
Mullen Automotive files an SEC filing in early August worth noting.
MULN has been under pressure, losing 93% YTD.

Ivan Brian FXStreet

Mullen Automotive (MULN) is once again catching some interest from retail traders as the company announced its new crossover vehicle will be due for demo in October. The car is scheduled to be launched in a US-wide tour to increase the visibility of the name and cars. Mullen has been the subject of much speculation and entered the meme stock universe this year with some eye-catching price spikes. In March, it moved nearly 400% in the space of a few days before eventually coming back down to earth, so trading in this one is high risk and speculative. Year to date, the stock is down nearly 94%. The situation gets worse if you look back to November 2021 when MULN stock spiked to over $15. On Wednesday it closed at just $0.698.

Also read: Tesla Stock Deep Dive: Price target at $400 on China headwinds, margin compression, lower deliveries

Mullen stock news

Recent filings from Mullen are not exactly comforting with losses increasing significantly.

Source: Mullen filings SEC Form 10

Loss from operations has ballooned from $15 million to nearly $63 million for the 9 months to the end of June 2022 versus the end of June 2021. Shares outstanding have also moved from 5.1 million to more than 376 million, but at least the cash balance has also ballooned.

Given the loss from operations that just means Mullen is likely to burn through it in our view. In the 3 months to the end of June 2022, it lost $18 million from operations, so that equates to a yearly cash burn rate of $54 million approximately if that trend continues. Having cash of $61 million then gives them a little over a year of headroom.

We also note a filing from August 5.

Here is the link to the full filing tm2222319-4_s3asr - none - 4.750022s (sec.gov)

Mullen stock forecast

MULN stock is not one for me based on the data above. Some appear to like the risk and volatility, and that is their choice, but please be mindful of risk as this is a high-risk play. Something so volatile does not lend itself to technical analysis.

MULN stock chart shows meme stock high-risk volatility

MULN stock daily

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

EUR/USD weakens below 1.1700 as Middle East tensions drive US Dollar strength

The EUR/USD pair trades with mild losses around 1.1685, the lowest since late January, during the early Asian session on Tuesday. The US Dollar gathers strength against the Euro as escalating tensions in the Middle East boost safe-haven currencies. The preliminary reading of the Harmonized Index of Consumer Prices from the Eurozone will be published later on Tuesday.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold defends bids as US-Iran war continues to fuel safe-haven flows

Gold retains positive bias for the fifth consecutive day on Tuesday as rising geopolitical tensions in the Middle East continue to underpin safe-haven assets. However, a bullish US Dollar keeps the bullion below its highest level since late January, set on Monday, warranting caution before positioning for any further appreciation.