Why Is Mullen Automotive (MULN) Stock Up 45% Today?

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Mullen Automotive (NASDAQ:MULN) stock continues to rally on Thursday after the company recently announced plans to combat illegal naked short sellers.

Mullen Automotive announced the plan to take on naked short sellers yesterday and when it did MULN stock underwent a major rally. That resulted in the company’s shares soaring more than 69% higher during normal trading hours on Wednesday.

With yesterday’s news came heavy trading of MULN stock. When markets closed, some 1.2 billion shares of the stock had changed hands. To put that in perspective, the company’s daily average trading volume is about 113 million shares.

As of this morning, more than 89 million shares of MULN stock have been traded. While still below its daily average, this significant movement has the company’s stock climbing 44.9% higher during pre-market trading on Thursday.

MULN Stock Naked Short Sellers

Mullen Automotive has enlisted the aid of Christian Attar and Warshaw, Burstein LLP to take on naked short sellers. The company believes it had been targeted in a scheme to manipulate its stock price. It said as much based on data it received from Shareholder Intelligence Services LLC.

The idea of Mullen Automotive tackling potential naked short sellers head-on has investors excited. However, it’s worth noting that the company’s low share price could mean the stock is seeing a bit too much hype from this news. That’s just something investors will want to keep in mind before taking a stake in MULN.

There’s even more stock market news traders will want to know about below!

We’ve got all of the hottest stock market coverage traders need to know about on Thursday! That includes the biggest pre-market stock movers this morning, more news concerning MULN stock, and more. You can catch up on all of this news at the following links!

More Stock Market News for Thursday

On the date of publication, William White 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.

With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that  InvestorPlace.com’s writers disclose this fact and warn readers of the risks. 

Read More:Penny Stocks — How to Profit Without Getting Scammed

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