Despite a rather impressive rise in most stocks in today’s market, there are still some companies down on their luck. Mullen Automotive (NASDAQ:MULN) is one such company. In fact, MULN stock just hit a fresh 52-week low.
This low, right around 10 cents, is a far cry from the $3.45 per share 52-week high seen by the electric vehicle (EV) maker. During its previous bull market high, MULN stock was much, much higher.
Like other EV peers, Mullen saw increased pressure over 2022 as valuations came down (and as interest rates rose). Now this year, while many EV stocks are taking off, Mullen is sitting out the rally. Investors seem to be focusing on higher-quality automakers in the sector.
Let’s dive into what has been driving Mullen’s price action lately.
MULN Stock Hits Fresh 52-Week Low
There are plenty of headlines responsible for the negative momentum seen in MULN stock of late. However, what investors may be most focused on right now is Mullen’s ability to generate and deliver orders. As InvestorPlace recently reported, Mullen is at risk of missing a purchase order delivery target for a key enterprise-level client. Additionally, the company’s purported “Fortune 500 client” has yet to be revealed. That’s stoking concerns that Mullen may be experiencing production issues.
Then there are the legal concerns investors are paying attention to right now. The company recently paid $6 million to settle a debate with Qiantu. Mullen is also contesting $3 million in legal fees tied to another matter.
All these issues are compounded by an uncertain macro environment. Right now, there’s plenty of risk to be had by holding a more established EV company. Thus, many investors appear to see MULN stock as not worth the risk, particularly as competition heats up in this space.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.