Mullen Automotive Stock Forecast: MULN declines to $0.46 on strong Nonfarm Payrolls' figure

• Mullen Automotive stock has gained 7% over the past five trading sessions.
• MULN stock slid 35% in late September as delisting worries continued.
• Friday’s Nonfarm Payrolls blew expectations out of the water as US hiring exploded.
• Bulls need to shoot for the 21-day SMA near $0.51.
• NASDAQ Composite gives up over 1% on Friday due to strong NFP.

Mullen Automotive (MULN), the electric vehicle (EV) penny stock that has been threatened with delisting by the NASDAQ exchange, has gradually seen its share price stabilize over the past week. After slouching down nearly 35% between September 15 and 28, the penny stock has seen its fortunes recover somewhat in the first week of October. MULN stock has regained 7% over the past five trading sessions.

Mullen stock is selling off on Friday, however, after the September Nonfarm Payrolls (NFP) release showed hiring surging above expectations. MULN stock is down 3% to $0.46 at the time of writing.

Consensus for the NFP had called for 170K net new hires, a figure that would have held the labor market stready. Instead, the US Bureau of Economic Analysis reported 336K net new hires. One good sign for those worried about an overheating US labor market causing a resurgence in inflation was the Average Hourly Earnings print, which showed wages growing 0.2% on a monthly basis and 4.2% on an annual basis. Both readings were below consensus. 

The news caused the NASDAQ Composite to sell off over 1% as many think a strong labor market could reignite inflation and cause the Federal Reserve (Fed) to raise interest rates even higher.

Mullen stock news: NASDAQ delisting saga continues

Mullen’s stock price has trended lower as the company’s prospect of retaining its NASDAQ listing has been called into question. NASDAQ officials said at the beginning of September that MULN would be delisted shortly in response to the company failing to maintain a share price above $1. Despite two reverse stock splits in 2023 – a 1-for-25 reverse split and a 1-for-9 reverse split – heavy issuing of new shares throughout the summer has caused MULN to re-earn its penny stock reputation.

In September, Mullen CEO David Michery requested a hearing with the NASDAQ Hearings Panel to request an extension period. Impressively, the request was granted, and Mullen hired Donohoe Advisory Associates to argue its case. The firm is made up of former stock market executives. The company has not yet presented a timeline for the hearing, but the action delays the execution of a delisting for now.

Separately, the brokerages that Mullen has filed suit against for alleged stock manipulation practices have until October 19 to file their response to the charges. The defendants include TD Ameritrade, Charles Schwab and National Financial Services. 

Mullen argues that the entities “artificially affect[ed] market activity and manipulate[d] the price of Mullen securities between May 4, 2023, and August 25, 2023, in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.”

Just a week ago, Mullen announced the first delivery of the Mullen Three, its electric Class 3 semi-truck chassis, to Randy Marion Automotive Group. The $630,000 purchase is part of 1,000 units previously ordered by the commercial dealership. The delivery was made possible by Mullen receiving EPA certification for the Class 3 vehicle. Additionally, both its Mullen One cargo van and the Mullen Three have been approved for $7,500 tax credits by the Internal Revenue Service.