Mullen Automotive Stock Plunges 13.93% Amid Liquidity Concerns

Mullen Automotive's stock price plummeted by 13.93% during pre-market trading on June 13, 2025, marking a significant decline that caught the attention of investors and analysts alike.

The sharp drop in Mullen Automotive's stock price was not triggered by any traditional technical signals, such as head-and-shoulders patterns, RSI oversold conditions, or MACD death crosses. This suggests that the decline was either too abrupt for standard indicators to capture or unrelated to chart patterns. The lack of signals implies that the drop was likely driven by factors other than classical trend reversals or overbought/oversold thresholds.

While there was no data on institutional block trading, the stock's trading volume hit 1.9 million shares, indicating a significant amount of trading activity. Mullen's ultra-low market cap makes it highly susceptible to liquidity shocks. A small number of large sell orders or algorithmic trading reacting to the price drop could have triggered a cascade. The absence of block trades hints that this was likely retail-driven panic or automated execution, not institutional selling.

Peer stocks in the EV and tech themes showed mixed performance, with some rising slightly and others falling by smaller margins. This divergence indicates that the sell-off in Mullen Automotive wasn't sector-wide. Investors appear to be rotating out of specific names rather than the entire theme, pointing to company-specific factors or lack of catalysts as the root cause.

Mullen's tiny market cap makes it vulnerable to sudden volume spikes. A single large sell order, even outside block trades, could trigger a self-fulfilling collapse. The 25% drop aligns with a "death spiral" where falling prices scare holders into selling, exacerbating the decline. Even without traditional signals, the drop might have breached a key support level set by traders, leading to automated stop-loss orders that snowballed into a rout, especially in thin liquidity.

Mullen Automotive's stock plummeted with no fundamental news to explain the chaos. The crash highlights two critical factors for ultra-small-cap stocks: liquidity risk and technical fragility. A single trader offloading a small percentage of its float could move the price wildly—a reality underscored by today’s trading volume. Such volatility isn’t news-driven; it’s a function of supply and demand imbalances in illiquid markets.

This plunge serves as a cautionary tale for retail investors in penny stocks. Without robust fundamentals or liquidity, even minor selling can trigger catastrophic losses. Mullen’s case underscores the fragility of speculative bets in an environment where technicals—and not news—often reign supreme. Investors in speculative names must weigh these risks—or risk being caught in the next liquidity-driven freefall.