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In keeping with its recent performances, Mullen Automotive’s (NASDAQ:MULN) stock is trending downwards this morning. Yesterday, the electric vehicle (EV) maker released a statement touting the competition of a “Successful Commercial Drive Event and Showcase.” This marked the company’s debut at the Government Fleet Expo and Conference (GFX), a leading industry event. As InvestorPlace‘s Eddie Pan reports, Mullen showcased multiple vehicles at the event, specifically its ONE Class 1 cargo van and THREE Class 3 chassis cab truck. Attendees were allowed to test drive both Mullen vehicles.
However, Pan also notes that the company’s alleged “success” at GFX didn’t do much to boost MULN stock. On the contrary, shares started the day down 6% and have only fallen further since. In this, we see that even successful events can’t help this troubled company.
What’s Happening With MULN Stock
Mullen has a long history of failing to rally in the face of good news. This time around has been no different. As of this writing, MULN stock is down almost 14% for the day and will likely continue declining. In just the past month, Mullen has shed nearly 56% of its value and that came after it had already fallen significantly. That may sound bad, but investors should be more concerned with the fact that MULN stock has fallen almost 90% year-to-date (YTD). At the rate it’s going, it will soon pass 100% if the stock isn’t delisted first.
This raises the question of how successful Mullens’ GFX debut truly was. While it likely provided the company’s management with the opportunity to engage with potential buyers and show off its vehicles, it did nothing to help boost MULN stock. That’s likely because Mullen’s failure to comply with Nasdaq regulations is much more important than any trade show. As Pan reports:
“At the time of this writing, Mullen still appears on Nasdaq’s Noncompliant Company list. According to the exchange, it may, in its discretion, require some companies to trade above $1 for more than 10 consecutive days, but generally less than 20 consecutive days. Nasdaq factors several items into its consideration, such as price trend, margin of compliance and the market maker montage.”
Since Pan issued that take, MULN stock has only fallen further and, as such, is still on the list that no tech company wants to be on. Anytime that Mullen reports good news, there always seems to be bad news to go with it. And in this case, the bad news clearly outweighed the good. Earlier this week, Mullen had more positive updates, announcing a partnership with Amerit Fleet Solutions. And yet, shares have fallen more than 17% over the past five days.
Why It Matters
The underlying message for investors is the same as it often is with MULN stock. This good news is ultimately meaningless because Mullen is an unstable meme stock past the point of no return. The company is in danger of being delisted from the Nasdaq, and as such, it is very difficult for anyone but the r/WallStreetBets crowd to trust — even traders who can stomach considerable risk need to see the big picture regarding Mullen. If a successful debut at a leading industry trade show can’t help shares rise, it is unlikely that anything will.
No matter how many partnerships Mullen announces or how many successful programs it completes, it has almost no chance of success. This company truly is the “fast talking EV hustle” that Hindenburg Research described it as in its damning short report last year. Since then, the case for shorting MULN stock has only grown.
On the date of publication, Samuel O’Brient 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.
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