What's Going On With EV-Maker Mullen Automotive's Stock?

May 8, 202416:57 UTC

Mullen Automotive, Inc. MULN shares are trading higher Wednesday, and the stock is up by more than 50% over the past five days. Here's a look at what's going on.

What To Know:

Mullen announced on Monday the addition of a commercial dealer, National Auto Fleet Group, which will offer Mullen’s full line of all-electric commercial vehicles in two California locations.

The company said on Tuesday its subsidiary, Bollinger Motors, and Amerit Fleet Solutions have entered into an agreement for Amerit to provide mobile service and maintenance to Bollinger’s commercial fleet customers.

Mullen shares are blasting higher on heavy trading volume Wednesday. According to data from Benzinga Pro, more than 13.5 million shares have already been traded in the session, compared to the stock’s 100-day average of 3.5 million shares.

Approximately, 24.2% of Mullen shares are being sold short which can contribute to large price moves when combined with news catalysts and heavy trading volume.

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How To Buy MULN Stock:

By now you're likely curious about how to participate in the market for Mullen Automotive – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Mullen Automotive, which is trading at $7.73 as of publishing time, $100 would buy you 12.94 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

MULN Price Action: According to Benzinga Pro, Mullen Automotive shares are up 29.1% at $7.41 at the time of publication Wednesday.

Image: Courtesy of Mullen Automotive, Inc.