Shares of Mullen Automotive surged on Thursday, signaling a potential recovery following a prolonged period of adversity. The stock of Mullen Automotive, which had been caught in a downtrend since early 2023, witnessed a notable upswing.
At the time of this publication, Mullen Automotive Inc stock (MULN) has witnessed a surge.
MULN
Mullen Automotive Inc
Current Price: $0.34
Change : +0.08
Change (%): (29.81%)
Volume: 59.7M
Source: Tomorrow Events Market Data
The recent setback occurred last Thursday, subsequent to the company’s announcement of the filing of a preliminary proxy statement with the Securities and Exchange Commission (SEC). This statement detailed plans for a stockholders’ meeting to deliberate a reverse stock split of the company’s common stock.
The proposed exchange ratio for the split is anticipated to range from 1-for-2 to 1-for-100. However, the final ratio will be determined by the board of directors, contingent upon stockholder approval of the reverse split. The primary objective behind this move is to regain compliance with the Nasdaq’s minimum bid price listing rule. The scheduled meeting is slated for December 15.
Following the announcement, the stock faced downward pressure, a trend that persisted until Monday. On this day, the company provided an update on its ongoing legal battle against TD Ameritrade, Charles Schwab, National Finance Services, and other parties. Notably, the update disclosed an order issued by Judge Analisa Torres, providing further context to the proceedings.
Tuesday saw a notable upswing in Mullen’s shares, marked by an unusually high trading volume. According to data sourced from Benzinga Pro, trading activity surpassed average levels, with a total of 98.43 million shares exchanged, compared to the typical 55.23 million. Additional data from Tomorrow Events indicates that, as of today, approximately 59.7 million shares have already changed hands.
Furthermore, Mullen’s stock is currently subject to heightened short interest, with 16.39% of shares currently held in short positions. This significant short interest could be a contributing factor to the recent price movement.
As the market closely watches Mullen Automotive’s trajectory, shareholders and analysts alike are eager to see how these recent developments will shape the company’s future performance. With the looming stockholders’ meeting and ongoing legal proceedings, the next few weeks promise to be pivotal for Mullen Automotive and its investors.
