Yesterday, shares of Mullen Automotive (NASDAQ:MULN) stock finished the day higher by 65% following a slew of major announcements from the company and CEO David Michery. At the same time, MULN stock also experienced a record high in daily trading volume of 1.07 billion shares, more than doubling its previous daily trading volume record. It’s safe to say that retail sentiment concerning Mullen is still very much elevated. On ApeWisdom, which measures the popularity of Reddit stocks, MULN has moved up 40 spots to 16th place.
This morning, Mullen announced an up to $25 million stock buyback program, effective until Dec. 31. The electric vehicle (EV) company also disclosed a cash position of approximately $235 million. Mullen believes its stock is “significantly undervalued” and “trading at a significant discount to current cash position.”
MULN Stock Daily Volume Exceeds 1 Billion Shares
Last week, Michery surprised shareholders by providing guidance for the remainder of the year and for 2024. For the rest of the year, he expects 660 Class 1 vehicles will “leave the factory” while 930 Class 3 vehicles will “leave the factory to customers.” For 2024, he disclosed guidance of 368 Class 1 one-seaters, 11,000 Class 1 two-seaters and 3,000 Class 3 vehicles. That gives us a total of 1,590 vehicles for 2023 and 14,368 vehicles for 2024, which reflects a major ramp up in production next year.
Yesterday, Mullen announced that it had retained Christian Attar — formally known as Christian Levine Law Group — as part of its investigation into alleged market manipulation and naked short selling of its stock. The company had previously retained ShareIntel to assist with the investigation.
“Since our announcement on April 28, we have been actively investigating naked short selling and we now have enough intel to have the law firm actively investigate and, where justified, take action against any market manipulators using naked short selling, spoofing or other illegal acts,” said Michery.
Last but not least, Mullen will be able to finally report quarterly revenue for the first time ever. During the quarter ended June 30, Mullen recorded $308,000 in revenue from the sale of 22 EV cargo vans to Randy Marion Automotive Group (RMA). RMA has placed a total of $279 million in purchase orders for Mullen’s Class 1 and Class 3 EVs.
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On the date of publication, Eddie Pan 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.
