- MULN stock drops on lack of bullish surprise from CPI.
- December inflation on Thursday hit 6.5% YoY, good but what was already expected.
- Tesla stock has also dropped over 3% on the news.
- Mullen Automotive stock bounced off the 9-day moving average at $0.36.
Mullen Automotive (MULN) stock is trading down on Thursday as inflation data in the form of the Consumer Price Index for December proved in line with estimates rather than providing a bullish surprise. If headline inflation came in well below the 6.5% headline rate, then riskier stocks like Mullen would have outperformed. Instead, the headline rate of 6.5% YoY was exactly what the analysts had predicted, and so bullish traders bracing for a spike sold out of their positions. Electric vehicle leader Tesla (TSLA) has also sold off 3% on Thursday to land below $120 per share.
MULN stock is trading at $0.3912 in the early part of Thursday's session, down 2.1%, while the NASDAQ is off 0.3%.
Mullen Automotive stock news: Waiting on a catalyst for MULN
Mullen Automotive has not been producing any new headlines thus far in 2023 and absolutely requires a catalyst to continue the rally that took place over the past month. The EV upstart is focused primarily on its major product endeavors slated for later in the year. These consist of the distribution deal of the I-GO delivery vehicle in Europe; production of the company's US commercial vehicles, including those obtained through the acquisition of Bollinger Motors; and the second leg of the Strikingly Different tour that is advertising the Mullen FIVE consumer vehicle to be delivered in 2025.
Mullen finished the first part of its Mullen FIVE tour in late December. The second leg will begin this spring and tour through the Midwest, East Coast and Northwest of the United States. Each stop will be used to showcase the Mullen FIVE RS, a high-performance version of the more mainstream FIVE crossover that features 1,100 horsepower and a top speed of 200 mph.
“We had tremendous success on the first leg of the Mullen FIVE tour,” said David Michery, CEO and Chairman of Mullen Automotive. “Every location sold out, and we received overwhelmingly positive feedback on the Mullen FIVE."
Initial test versions of the I-GO Commercial Urban Delivery EV produced in China by a contract OEM have arrived in Europe. The first units were shipped to Ireland where the Newmont Motor Group will be the first distributor to begin selling the I-GO to commercial customers. The vehicle meets the certifications to be sold in Ireland, Spain, the UK, Germany and France.
I-GO Urban Commercial Delivery EV / Source: Mullen Automotive
Mullen Automotive stock forecast
Mullen Automotive stock rallied 165% between December 7 and January 6. This rally saw the stock carried from a low of $0.18 to a high of $0.4775. The belief that a headline inflation rate below 6.5% would lead to a surge in MULN shares did not materialize, so bulls will now await the emergence of a new catalyst.
One good sign for bulls is that Thursday's price action saw MULN stock descend to the 9-day moving average and quickly bounce back off that level at $0.36. This makes it the new support level of note. Any new positive catalyst for MULN stock will have bulls once again focused on $0.45 and $0.61, the latter resistance level from the high on October 25.
MULN daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.