Is NASDAQ minnow Mullen Automotive the next Tesla?
Could Mullen Automotive (NASDAQ: MULN) be about to become the short-squeeze story of 2023?
The small Southern California-based electric vehicle manufacturer has a market cap of just over $600 million dollars and saw a sharp share price decline of around 90% in 2022, but that hasn’t deterred a rapidly growing legion of MULN stock bulls.
Social media data, including posts from Reddit and Twitter, shows discussion about Mullen Automative has increased by more that 6000% in the past 3 months.
According to Ape Wisdom, Mullen Automotive has climbed 28 spots in the past 24 hours and into the top 30 most talked about stocks on Reddit – above the likes of Meta, NVIDIA, Alphabet, and Microsoft.
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But it’s on the rapidly growing stock chat platform, Stocktwits, where Mullen seems to be getting the most traction.
The MULN Stocktwits listing is followed by over 66,200 people – more than other better-known meme stocks including Bed Bath and Beyond, Faze Holdings, and The Wendy’s Company.
And for the past three months, the relatively tiny EV company has been in the top most discussed stock symbols. As of Monday morning the MULN symbol on Stocktwits was the second most active – above Bitcoin, Tesla, AMC, Doge Coin and Shiba Inu.
The social media frenzy is seen by analyst as fuelling MULN stock’s 70% share price surge, since the start of December 2022. Consequently, the company’s trading volume in recent weeks has been enormous compared to similar sized NASDAQ-listed companies.
However the share price which currently trades at just below 40 cents, is still well down from its 2022 high of $2.90.
Is there more behind the Mullen stock frenzy?
Aside from its rise to prominence on social media, 2023 looks set to be the biggest year yet for Mullen Automotive.
Three commercial product launches are slated for 2023. They are all in Mullen’s commercial EV lineup, including the Class 1-3 cargo van and cab chassis offerings and Bollinger Motors Class 4-6 chassis products.
On December 14, the company announced it has secured a purchase order for 6,000 of its Class 1 electric cargo vans. The order agreement was valued at around $200 million.
Days later, it was announced the company’s electric urban delivery vehicles, previously delayed due to COVID-19 would begin rolling out to a major European dealership group.
In November, Mullen also announced the acquisition of a manufacturing facility in Indiana, previously used to build GM Hummers.
Aside for the progress on the manufacturing front, the company is also seen by some investors as a potential geopolitical winner, should the de-globalisation trend continue. This is because unlike other EV manufacturers, all Mullen’s manufacturing operations are based in the United States.
Mullen’s short interest currently sits at just over 13% of its share float.