Mullen Automotive Inc (MULN) stock is surging today, Here’s why?

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The up-and-coming electric vehicle manufacturer, Mullen Automotive Inc (NASDAQ: MULN) has been on the news lately, due to an incredible 44.04% rise seen in its stock price during the current-market hours of trading. This has led to a high degree of chatter across social media making mention of the stock, and indications that it may be a part of a short squeeze are underway. This refers to the phenomenon where short-sellers are squeezed out of their positions, due to the positive market performance of the company’s share, forcing them to sell their short contracts. The ensuing growth then attracts buyers, which acts as a domino effect, further driving up stock prices. The sporadic growth by the stock in the last 96 hours has led social media commentators across Twitter and Reddit to question whether a deliberate effort is underway, given how utilization shot up from 35% to 75%, barely overnight.


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This growth in stock value further coincides with the company being featured in WardsAuto, one of the foremost American publications covering the automotive market and ecosystem. It had also been recently praised as being a potential competitor to American EV giants Tesla and Lucid, by the website carbuzz.com. This recent exposure by the media catalyzed a sudden growth spurt for the company’s stock, which was contrary to the expectations of investors holding short positions, which had initially made financial sense given the 93.71% slump experienced in the prior six months.

These publications made mention of the various rounds of funding the company had recently successfully been engaged in with $44 million in the prior months, with an additional $4 million during the previous week. These breakthroughs bring hope to investment prospects of the company, in a sector that holds a high degree of potential, in the wake of skepticism surrounding the fossil fuels industry, exacerbated further by the crisis in Ukraine.

The company had further announced lucrative partnerships with key European players that include DSA Systems, Comau, Durr, amongst others. These, along with the recent funding injections into the company bring about optimism and potential value creation, which is likely to be reflected in the stock market. The industry as a whole has been gaining traction, with the global and political shift towards sustainable energies, and giants such as Tesla reaching new heights in their overall value, which is paving the way for emerging firms such as Mullen Automotive.

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