Mullen Automotive's Stock Surge Amidst Bearish Outlook Raises Concerns

Introduction
The stock in question is Mullen Automotive, Inc. (MULN), traded on the NASDAQ exchange. Further discussions will cover its historical performance, recent activities, and forecasts.
Historical Performance
Historically, MULN stock has experienced a high of $35 and a low of $0.1 within the past year. Currently, it last closed at $0.1709 on July 05, 2023, which is a significant hike of 69.38%, or $0.07, from its previous close. However, there's a significant price deviation to be noted between the 50-day and 200-day moving average, which stands at $0.9436 and $5.30965, respectively. This indicates a substantial overall downturn in the stock's performance over the year. Despite the recent spike in price, MULN stock is trading substantially below its moving averages, which may be seen as a bearish trend.
Market Position and Volume
Mullen Automotive has a market capitalization of $44.26 million, quite small compared to industry leaders. The company has a total of 259.01 million shares outstanding. On the last trading day, the volume was recorded at 1.26 billion shares, incredibly higher than the average volume of approximately 91.34 million shares. This volume surge accompanying a significant price increase could be indicative of a strong buyer's market, highlighting increased investor interest in the stock.
Earnings and Valuation
MULN's earnings per share (EPS) remarkably stands at $216.43. However, a PE ratio of 0 could imply that the market has little to no expectations of future earnings or, alternatively, that the company has no earnings currently, which could affect investor sentiment negatively. The MACD (3-month) at -0.271832 suggests a selling pressure.
News Impact and Future Potential
Recent news surrounding MULN has indeed influenced the stock’s performance. CEO David Michery's recent optimistic year-end guidance led to a 65% surge in the stock. He hinted at the scheduled start of Mullen's Class 3 electric vehicle (EV) production, providing hope for investors. This could mean potential revenue increases for the company. Furthermore, the company's action against alleged naked short selling—retaining a law firm known for successful prosecutions of market manipulation schemes—has triggered a positive response in the market.
Conditional Stock Prediction
Given the current information, a short-term increase in MULN's shares seems probable. Considering the last closed price, the high trading volume, the legal action taken by the company against short selling, and the planned EV production, the stock price might witness an upward motion for the next trading day, July 06, 2023.
Conclusion and Recommendation
For the upcoming week, there might be some volatility due to the shifting market sentiment and fresh news influencing trading patterns. However, the fundamental outlook for the company remains uncertain due to its historical low performance and apparent lack of earnings reflected in its PE ratio of 0.
MULN is a risky proposition at this point, mainly due to its historic low performance and steep deviation from the moving averages. It does, however, offer some speculative potential given the overall growth in the EV market and new production plans. Consequently, it could be categorized as a 'Hold' for investors already owning the stock, and it might be of interest to speculators willing to take on significant risk.
In conclusion, potential investors are urged to remain cautious and make extensive studies before investing in MULN, considering the overall bearish outlook, despite the recent surge triggered mainly by news events rather than tangible business growth.