Why a ‘successful’ EV event won’t save Mullen’s stock (MULN)

In line with his recent performances, Mullen Automotive (NASDAQ:MULN) the stock is trending lower this morning. Yesterday, the electric vehicle (EV) maker issued a statement touting the competition as a “successful commercial driving event and showcase”. This marked the company’s debut at the Government Fleet Expo and Conference (GFX), a major industry event. As InvestorPlaceAccording to Eddie Pan, Mullen displayed several vehicles at the event, in particular his Class 1 utility van and THREE Class 3 cab trucks. Attendees were allowed to test drive both Mullen vehicles.

However, Pan also notes that the company’s alleged “success” at GFX has done little to boost MULN’s stock. On the contrary, stocks started the day down 6% and have only fallen further since. In this, we see that even successful events cannot help this struggling business.

What’s going on with MULN stock

Mullen has a long history of failing to rally in the face of good news. This time was no different. As of this writing, MULN stock is down nearly 14% for the day and will likely continue to decline. Over the past month, Mullen has lost almost 56% of its value and this after it has already fallen significantly. This may sound bad, but investors should be more concerned that MULN stock is down nearly 90% year-to-date (YTD). At the rate it is going, it will soon pass 100% if the action is not discounted first.

This raises the question of the success of Mullens’ GFX debut. While this likely provided company management with the opportunity to engage with potential buyers and show off their vehicles, it did nothing to help increase MULN’s stock. It’s probably because Mullen didn’t respect Nasdaq regulation is much bigger than any trade show. As Pan reports:

“As of this writing, Mullen still appears on Nasdaq’s list of non-compliant companies. Depending on the exchange, it may, at its discretion, require certain companies to trade above $1 for more than 10 consecutive days. , but usually less than 20 consecutive days. The Nasdaq considers several things, such as price trend, compliance margin, and market maker setup.”

Since Pan released this take, MULN stock has only fallen further and as such is still on the list that no tech company wants to be on. Whenever Mullen reports good news, there always seems to be bad news to accompany 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% in the past five days.

why is it important

The underlying message for investors is the same as it often is with MULN stocks. This good news ultimately doesn’t make sense because Mullen is an unstable meme stock beyond the point of no return. The company is at risk of being delisted from the Nasdaq, and as such makes it very difficult for anyone other than the r/WallStreetBets crowd to trust – even traders who can bear considerable risk must have an overview of Mullen. If a successful debut at a top trade show can’t help stocks rise, then anything is unlikely to.

No matter how many partnerships Mullen announces or how many successful programs he does, he has almost no chance of success. This company is truly “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 shares has only grown.

At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.