Why Is Mullen (MULN) Stock Up 65% Today?

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Mullen (NASDAQ:MULN) stock closed up by more than 65% today following surprisingly optimistic year-end guidance from company CEO David Michery. Indeed, alongside the upcoming start to production of Mullen’s Class 3 electric vehicles (EVs), it seems investors have newfound reason to hold onto their hopes for the company.

What’s up with Mullen lately?

Well, in a recent interview, Michery revealed that the company expects 660 Class 1 vehicles to “leave the factory” in 2023. Meanwhile, 930 Class 3 vehicles are expected to “leave the factory to customers” this year as well. Next year, Michery stated the company also plans on releasing 368 Class 1 one-seaters, some 11,000 Class 1 two-seater vehicles and 3,000 Class 3 vehicles.

According to Michery, the one-seaters are intended mostly for short deliveries. The one-seaters will also likely play a smaller role in sales.

MULN Stock Soars on Naked Short Selling Investigation

Interestingly, this guidance is not the only news item out of the oft-downtrodden EV maker. Mullen also recently announced that it has retained Christian Attar and Warshaw, Burstein, LLP for its investigation into alleged naked short selling. Mullen noted that Christian Attar has collected millions of dollars on behalf of clients in recent years in the prosecution of market manipulation.

“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 CEO David Michery.

If you recall, Mullen announced back in late April that it had hired Shareholder Intelligence Services to investigate market manipulation and fraudulent short selling. This was in response to higher-than-normal trading volume and “evidence of unusually high levels of failure to deliver on short sales.”

Between its recent production schedule and its commitment to investigate market manipulation, Mullen seems to have found some initiative lately. Investors have clearly taken notice as well. Today, MULN stock is trending at around 17 cents per share.

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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.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

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