Electric vehicle (EV) dumpster fire Mullen Automotive (NASDAQ:MULN) stock briefly had zero available shares to short today. According to Fintel, short shares available at a “leading prime brokerage” dropped from 250,000 to 0 shares this morning.
What’s up with Mullen lately?
Well, as the EV maker’s delisting crisis rages on, it seems like bearish investors can’t get enough Mullen short shares. Indeed, Fintel, which tracks a sample of available MULN short shares at an anonymous leading brokerage, reported this morning that the company had none available.
Now, it’s worth disclosing that this doesn’t mean the company had virtually zero short shares available across all brokerages. Rather, at Fintel’s sample brokerage, all short shares had been briefly bought up. Still, that offers telling insight into the supply and demand for MULN.
Of course, the phenomenon was very short-lived. Heading into market close, Fintel now shows 3,000 available short shares. That also remains a ways away from the 250,000 available short shares it reported just three days ago.
Reasonably so, MULN stock hasn’t exactly performed up to expectations of late. The EV stock is down roughly 60% this month, despite issuing more than 10 updates on its business, including two new orders for its electric vans.
MULN Stock Slides Amid Delisting Woes
This California-based EV maker has been fighting a seemingly fruitless battle lately. Specifically, the company has had a delisting threat hovering over its head. If you recall, in March, Mullen was given a 180-day extension to meet Nasdaq’s $1 minimum bid price requirement before being removed from the exchange.
In an effort to remain listed, Mullen executed a 1-for-25 reverse stock split on May 4, with the goal of getting its share price over $1. While the stock split succeeded in getting MULN to $2, the thrill was short-lived. Currently, Mullen shares are back down below $1, sitting at 75 cents per share.
With the delisting deadline still a few months away, the company has time to get its stock price back to the minimum. Unfortunately, though, the state of Mullen’s short shares offer plenty of insight into investor sentiment for the company: It’s a dog.
Despite a barrage of relatively optimistic news items from Mullen, investors still refuse to jump back into shares. Mullen is also far behind competitors as it pertains to EV production and cash flow. Whether or not the company can manage to regain its footing remains to be seen.
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On the date of publication, Shrey Dua did not hold (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.
