Mullen Automotive (MULN) Faces Grim Outlook Amid Extreme Overselling and Poor Fundamentals

Technical Analysis

Mullen Automotive, Inc. (MULN) closed at $0.12 on July 14, 2025, down 18.16% intraday, hitting a low of $0.11 and a high of $0.14. The stock exhibits extreme oversold conditions with an RSI of 1, indicating intense selling pressure and potential for minimal short-term relief rallies. The MACD is deeply negative at -2.83, reinforcing bearish momentum. Volume significantly exceeds average at 57.87 million versus 14.42 million, signaling heightened market activity and possibly panic selling. Key resistance is at $0.14, with no identified support levels, reflecting technical fragility. The 50-day and 200-day moving averages are anomalously high due to data irregularities and offer limited practical relevance at current price levels. Volatility is extreme, as suggested by the abnormally high ATR metric.

Fundamental Analysis

The fundamental outlook is poor. MULN’s trailing twelve-month EPS is a negative $43,028.52, effectively bankrupting any earnings valuation model. The absence of a P/E ratio confirms an unprofitable status. The company’s market capitalization stands at roughly $236,000, which is nominal and signals a micro-cap or penny stock classification with heightened risk. No meaningful intrinsic value can be derived given the lack of profitability, extremely low trading price, and negligible market cap. The upcoming earnings report on August 11, 2025, could provide clarity but also poses downside risk if losses deepen.

Short-Term Outlook

For July 15, 2025, the stock is expected to remain under selling pressure with potential continued declines or sideways movement due to the lack of support. Over the next week, strong resistance at $0.14 and overwhelmingly negative momentum indicators suggest limited upside. Volatility will persist, and recovery is contingent on positive fundamental catalysts that currently appear unsubstantiated.

Intrinsic Value and Long-Term Investment Potential

Given the entrenched losses and minuscule market capitalization, intrinsic value appears negligible. The company faces significant operational and financial challenges that undermine its long-term viability. Without a clear path to profitability or strategic turnaround, the stock’s long-term investment prospect is highly speculative and fraught with risk.

Overall Evaluation

MULN qualifies as a Sell candidate. Technical and fundamental data converge on a negative outlook marked by extreme overselling, unprofitability, and lack of institutional support. The absence of support levels and steep decline in price reinforce vulnerability to further downside. The stock’s profile is characteristic of a speculative micro-cap with structural weaknesses, making it unattractive for holding or buying positions at present.