Mullen Automotive (NASDAQ:MULN) is rising today on news regarding its 2023 tour. The electric vehicle (EV) producer recently announced that its upcoming EV tour will kick off in Austin, Texas, on Aug. 20, lasting through Nov. 2023. The company has described the tour as “strikingly different.” It will include five new Mullen EVs, including the Bollinger B2 Electric Pickup Truck and the Mullen FIVE RS High-Performance Sport EV Crossover. While MULN stock is reacting very well to the news, this doesn’t mean that it will finally be a winner. Mullen is still surrounded by plenty of red flags that should make investors nervous, even as it gets ready to showcase the models upon which it is staking everything.
What exactly should investors be expecting as the new Mullen tour takes off? Let’s take a closer look at the announcement and assess what it could mean for the company.
What’s Happening With MULN Stock
The positive momentum that sent MULN stock up last week is continuing so far. As of this writing, it is up 3% for the day but was up as much as 10% this morning. At first glance, the stock appears to be on a winning streak. Last week, the company’s battle against alleged “naked short selling” did send it soaring. The upcoming tour presents Mullen with another positive catalyst that could help a more stable company rise. However, as is always the case when an unstable meme stock like Mullen rallies, it’s important for investors to see the big picture.
The fact is that for all its growth last week, the reasons to bet against Mullen still vastly outnumber any progress it has made. It recently lost its spot on the Russell 2000 Index, and the possibility of MULN stock being delisted from the Nasdaq still hangs over the company like a dark storm cloud. And although its risen 70% over the past five days, Mullen is still trading at only 19 cents per share. It’s been trading below $1 since May 2023 and hasn’t even come close to reaching that mark again. And as InvestorPlace‘s Thomas Yeung reports, it’s likely that Mullen doesn’t have enough cash to survive in the long term.
For all its problems, Mullen is clearly going all in on its upcoming tour as a last-ditch effort to show investors that it isn’t giving up. Unfortunately for investors, simply showing off its new vehicles likely won’t do much to boost share prices and keep them up. Mullen has a long history of being unable to rally even when it has good news to report. That’s likely because smart investors have long since recognized it as a loser with no hope of pulling out of the penny stock category.
What It Means
When it comes to Mullen, the bottom line is always the same; the potential for a slight stock bump doesn’t outweigh a long history of red flags and failure to demonstrate any actual growth. MULN stock has proven repeatedly that positive catalysts don’t mean much when the company can’t rise on positive news updates. As such, investors shouldn’t expect the upcoming Mullen EV tour to help the stock, even if it is “strikingly different.” As InvestorPlace contributor Chris MacDonald notes:
“Despite Mullen Automotive’s reverse share split and the release of an AI-focused press statement, the company’s investors are still struggling. While it’s important to consider the management’s perspective, making independent investment decisions is crucial. Personally, I remain unconvinced by Mullen Automotive’s optimistic outlook amidst its challenging financial situation. Consequently, I anticipate MULN stock to persist in its decline and advise against holding it in 2023.”
On the date of publication, Samuel O’Brient did not have (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.
