Mullen Automotive Sees Volatility and Uncertainty Amidst Expansion Efforts

Stock Overview

Mullen Automotive, Inc. (NASDAQ: MULN) is an automaker specializing in electric vehicles. As of September 12, 2023, the company closed at $0.49, representing a positive change of $0.04 or 10.03%. The company experienced significant stock price fluctuations, reaching a day-low of $0.46 and a day-high of $0.55. Despite this range, the stock price remains significantly lower than both its 50-day moving average of $0.36 and 200-day moving average of $3.30. Overall, the stock has seen considerable volatility, with an average trading volume of 279.43 million compared to the day's specific volume of 61.63 million.

Fundamental Analysis

Mullen has faced significant obstacles, reflected in the stock’s year-high of $15.25 and year-low of $0.10. Subsequently, Mullen's market cap stands relatively low at $89.87 million. The EPS is currently negative, standing at -$874.09, while the P/E ratio stands at 0, indicating no earnings to use as a divisor. The company consists of 184.17 million shares outstanding.

The company has recently made strides in expanding its operations, acquiring battery pack production assets and securing business deals. Most notably, it bought assets from Romeo Power for approximately $3.5 million to boost electric vehicle (EV) pack assembly. It also embarked on a strategic partnership with British Airways, which began piloting Mullen’s cargo van at the Los Angeles International Airport (LAX) and subsequently agreed to purchase multiple units.

Despite these positive undertakings, concerns surfaced around Mullen's Nasdaq delisting determination, which is likely contributing significantly to the stock's record lows.

Technical Analysis

Technical indicators present mixed sentiments. The stock’s RSI is at 51, suggesting it is not overbought or oversold. The MACD (3-month) is -0.21436, implying a recent bearish trend.

Strong support and resistance levels of $0.476 and $0.49, respectively, indicate a tightened trading range. With the ATR revealing a high level of stock fluctuation at 28.24, investors may expect continued volatility.

Stock Prediction

Based on the stock’s performance and recent news, it is challenging to project the stock price accurately for the next trading day or the upcoming week. Mullen's new business initiatives might potentially drive the stock's price upward, but the looming delisting determination might cause a downturn.

Final Evaluation

Given the zero consensus rating, the financial analysis yields a 'Hold' recommendation for Mullen's stock due to the uncertainty surrounding it. The potential boost from recent business initiatives could warrant optimism. However, the Nasdaq delisting determination, record lows, negative EPS, and high volatility contribute to the risks associated with investing in this stock. These indicators suggest investors should monitor the stock closely and critically evaluate any new information regarding the company's operations or its standing with Nasdaq.