One stock on the move today is electric vehicle (EV) maker Mullen Automotive (NASDAQ:MULN). Unfortunately for shareholders, MULN stock is declining today, losing nearly 9% in early afternoon trading.
This move comes amid what appears, on the surface, to be a positive catalyst. The company announced that its first two commercial EV products would be unveiled at the upcoming NTEA Work Truck Show. This show is taking place this week in Indianapolis, Indiana.
The company appears excited to showcase its lineup to existing and prospective customers. The company’s focus on electrifying commercial fleets is something many have looked to as the future. Thus, for many investors, this event is a big deal.
That said, the unfavorable response the market has provided may have some investors scratching their heads. Let’s see if we can make heads or tails of today’s move.
MULN Stock Dips Despite Key Upcoming Catalyst
Today’s decline in MULN stock appears to be from pessimistic market sentiment around all EV stocks. Bollinger Motors, Mullen’s subsidiary, has already announced its lineup for the show. Fellow InvestorPlace contributor Eddie Pan recently previewed it, and it is certainly intriguing.
However, the degree to which the market accepts Mullen’s lineup and puts forward pre-orders remains unclear. Given recent price cuts by other EV makers, there’s price pressure building. As the sector becomes more competitive, these pressures may pick up.
Additionally, with rising interest rates have come valuation compression. Indeed, this has not been good for potential high-growth stocks such as Mullen. It’s a macro and microeconomic soup that most investors don’t want to see materializing.
On this dip, an argument could certainly be made that there’s too much pessimism being baked into Mullen’s valuation. We’ll have to see how this event turns out. But for now, investors may want to keep this stock on their radar as more announcements come.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.