Mullen Automotive (NASDAQ:MULN) is still rising today as it recovers from this week’s reverse stock split. While it has been highly volatile since, dropping almost 30% over the past five days, MULN stock is still trading at over $1. However, it may be about to see another superficial catalyst. Data from the market analysis platform Fintel indicates that there are currently no shares available to short.
However, it is important to note that Fintel’s dataset is limited to just those shares available at “a leading prime brokerage” and isn’t all-inclusive. There may be shares in dark pools and other brokerages that are unaccounted for in Fintel’s dataset.
With that in mind, Mullen could still be one of the next stocks to undergo a short squeeze.
What’s Happening With MULN Stock
Even as short interest in MULN stock appears to be heating up; the stock isn’t exactly trending on popular investing forums. According to ApeWisdom, it has received one mention on r/WallStreetBets in the past twenty-four hours, with the number of mentioning users declining steadily. Fintel’s current short squeeze score for MULN isn’t terribly high either, at 60.81 (out of 100). However, the possibility of a Mullen short squeeze still warrants a closer look.
After a highly volatile day, MULN stock looks ready to close out the trading week in the green. That said, it isn’t by much. As of this writing, it is up less than 2% for the day and isn’t showing signs of a late rally. This slight growth may have been spurred by the news that Mullen’s electric vehicles (EVs) will qualify for this year’s federal tax credit. However, it looks increasingly like Mullen could be a likely short squeeze.
Fintel shows that since this morning, there have been zero shares of MULN stock available to short. One hour before, there had been roughly 9,00 shares available. The company boasts a short interest float percentage of just under 10% and 0.48 days to cover for shorts. As InvestorPlace contributor Larry Ramer reports, popular meme stock GameStop (NYSE:GME) also currently has no shares available to short.
If this trend continues, both companies could be headed for short squeezes in the near future.
On the date of publication, Samuel O’Brient 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.