- MULN stock drops on lack of bullish surprise from CPI.
- December inflation on Thursday hit 6.5% YoY, good but what was already expected.
- Tesla stock has also dropped over 3% on the news.
- Mullen Automotive stock bounced off the 9-day moving average at $0.36.
Mullen Automotive (MULN) stock is trading down on Thursday as inflation data in the form of the Consumer Price Index for December proved in line with estimates rather than providing a bullish surprise. If headline inflation came in well below the 6.5% headline rate, then riskier stocks like Mullen would have outperformed. Instead, the headline rate of 6.5% YoY was exactly what the analysts had predicted, and so bullish traders bracing for a spike sold out of their positions. Electric vehicle leader Tesla (TSLA) has also sold off 3% on Thursday to land below $120 per share.
MULN stock is trading at $0.3912 in the early part of Thursday’s session, down 2.1%, while the NASDAQ is off 0.3%.
Mullen Automotive stock news: Waiting on a catalyst for MULN
Mullen Automotive has not been producing any new headlines thus far in 2023 and absolutely requires a catalyst to continue the rally that took place over the past month. The EV upstart is focused primarily on its major product endeavors slated for later in the year. These consist of the distribution deal of the I-GO delivery vehicle in Europe; production of the company’s US commercial vehicles, including those obtained through the acquisition of Bollinger Motors; and the second leg of the Strikingly Different tour that is advertising the Mullen FIVE consumer vehicle to be delivered in 2025.
Mullen finished the first part of its Mullen FIVE tour in late December. The second leg will begin this spring and tour through the Midwest, East Coast and Northwest of the United States. Each stop will be used to showcase the Mullen FIVE RS, a high-performance version of the more mainstream FIVE crossover that features 1,100 horsepower and a top speed of 200 mph.
“We had tremendous success on the first leg of the Mullen FIVE tour,” said David Michery, CEO and Chairman of Mullen Automotive. “Every location sold out, and we received overwhelmingly positive feedback on the Mullen FIVE.”
Initial test versions of the I-GO Commercial Urban Delivery EV produced in China by a contract OEM have arrived in Europe. The first units were shipped to Ireland where the Newmont Motor Group will be the first distributor to begin selling the I-GO to commercial customers. The vehicle meets the certifications to be sold in Ireland, Spain, the UK, Germany and France.
I-GO Urban Commercial Delivery EV / Source: Mullen Automotive
Mullen Automotive stock forecast
Mullen Automotive stock rallied 165% between December 7 and January 6. This rally saw the stock carried from a low of $0.18 to a high of $0.4775. The belief that a headline inflation rate below 6.5% would lead to a surge in MULN shares did not materialize, so bulls will now await the emergence of a new catalyst.
One good sign for bulls is that Thursday’s price action saw MULN stock descend to the 9-day moving average and quickly bounce back off that level at $0.36. This makes it the new support level of note. Any new positive catalyst for MULN stock will have bulls once again focused on $0.45 and $0.61, the latter resistance level from the high on October 25.
MULN daily chart
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