MULN

**Conclusion (plain words first)**
Mullen Automotive (NASDAQ: MULN) remains a *very-high-risk micro-cap EV name whose price action, dilution history, and weak fundamentals outweigh any near-term news pop.* For a moderate-risk, 1-3 year horizon investor the sensible stance is **sell / avoid**; if you are already long and still believe in the story, keep only a token holding and set a hard stop just below the recent low (≈ $9).

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## What today’s data actually shows

| Snapshot (5 Jun 2025) | Reading | Comment |
|-----------------------|---------|---------|
| Last price | **$12.14** | −24.6 % on the day |
| Market-cap | **$4.4 M** | Reverse-split history leaves an ultra-thin float |
| Volume | 4.63 M shares (vs. 2.1 M 30-day avg.) | Big move on above-avg volume → capitulation, not accumulation |
| SMA-50 / SMA-200 | 71.5 K (!) / 310.9 M (!) — clearly distorted | Shows how reverse splits wreak havoc on classic MAs |
| 14-day RSI | 42 (drifting toward oversold) | No bullish divergence yet |
| MACD (daily) | +980 but rolling over | Momentum spike already fading |
| 52-wk range | $4.80 – “$99.9 B” (data skew) | Practical ceiling sits around $65 pre-split |

*Takeaway*: Technically the stock just produced a wide-range down candle that erased half of May’s bounce—textbook bearish continuation.

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## Fundamentals & narrative check-up

1. **Dilution overhang still massive**
• Shares outstanding have ballooned through five reverse splits in 24 months; every rally has been sold into company financings.
• With a market-cap under $5 M, any future capital raise is, by definition, highly dilutive.

2. **Recent “good” headlines lack balance-sheet punch**
| Date | Headline | Why it doesn’t fix the core issue |
|------|----------|-----------------------------------|
| 5 Jun 25 | Stakes in Bollinger Motors raised to 95 % | Adds exposure but also burns cash; Bollinger remains pre-revenue. |
| 5 Jun 25 | Mullen EVs qualify for Illinois ComEd rebates | Helpful for fleet sales, but incentives cap at $7.5 K per van—tiny versus Mullen’s cash burn. |

3. **Cash & sales gap**
• FY-2024 revenue was <$20 M while net loss topped $750 M (latest 10-K).
• Current cash is projected to last <9 months at 2024 burn rates; management has explicitly said additional raises are “likely.”

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## Sentiment scorecard (−5 very bearish, +5 very bullish)

| Factor | Score | Note |
|--------|-------|------|
| Price vs. trend | −2 | Back below 10-day and 30-day lines |
| Momentum | −1 | RSI <50, MACD rollover |
| Volume quality | −2 | Down-day on strong volume |
| Narrative traction | +1 | Small boost from today’s rebate/Bollinger news |
| Short-squeeze risk | 0 | Low borrow availability *but* float is now too small for large funds |
| **Composite** | **−4 / +5** | Neutral-to-bearish → sellers still control tape |

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## Action framework for you

| If you… | Suggested move | Why |
|---------|----------------|-----|
| Hold shares from higher | Trim or exit on any bounce toward $15; hard stop ≈ $9 | Protect capital before next dilution round. |
| Are on the sidelines | Pass for now | Need proof of sustainable revenue *and* a financing plan that doesn’t crush equity. |
| Are speculating short-term | Only consider nimble day-trades; close by the bell | Liquidity vanishes quickly outside headline spikes. |

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### Bottom line
Even after a 95 %+ collapse over two years, MULN’s risk/return profile still skews negative: each bullish press release is met with fresh equity issuance while core EV programs remain pre-scale. Preserve capital for stronger NASDAQ names aligned with your diversified, moderate-risk strategy.

*Stay disciplined and patient; there will be cleaner EV opportunities once the sector shakes out.*

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*Not investment advice; for educational purposes only.*