Mullen Automotive announced today that they have secured the exclusive right to sell, distribute, and brand a compact urban delivery vehicle.
Here it is:
It's called the I-GO and will start at $11,999. It's ready for sale now in the UK, Germany, Spain, France and Ireland, with the first vehicles set for Germany in December 2022.
The stock is up about 25% as I write this, but it has languished for most of this year as has the market as a whole.
If you squint really hard you can see a move up over the last week or so. Here's a quick look:
The stock has reclaimed its 50-day SMA, which is one of the first steps toward redemption.
I do like this stock, although it is highly speculative. There's a ton of overhead supply (people looking to get out of their underwater positions once they're back to even or slightly profitable) so unless there's something earth shattering, it will be a long slog ahead. The news this morning is not earth shattering, I'm afraid, but yes it's welcome.
There are some things that I'm liking as I look at the recent stock price action. Mostly, as the stock price has risen the volume trends have been positive. It has been going up on high volume days and settling back down on lower volume. Also, I've noticed that there has been an unusual amount of short selling over the last week, but the stock has held up in the face of that. That is a sign of strength.
Screenshot taken from the unusual short sales activity tool.
Also, as I write this, there are no shares available to short. This is another positive sign for longs.
This stock is a meme stock in a sexy industry, and I think there's always a chance for there to be a strong counter-trend rally. It has gotten so low in price, and the recent news has been pretty positive, so it may have bottomed at $0.21. We'll see.
But I think the risk is pretty low here for a long position. Longs may finally be rewarded for their patience as the stars seem to be aligning for MULN