Mullen Automotive, Inc. (NASDAQ:MULN) shares continue to fall Wednesday after the company effected a 1-for-100 reverse stock split before Tuesday's opening bell.
The Details:
Mullen Automotive shares have fallen nearly 50% in the past five days after the company announced and effected its 1-for-100 reverse stock split in order to regain compliance with Nasdaq's minimum bid requirements.
What Else: Mullen's subsidiary, Bollinger Motors, announced the 2025 Bollinger B4 Chassis Cab electric truck will have a manufacturer's suggested retail price (MSRP) of $158,758. The company commenced serial production of the B4 this week and will begin delivering vehicles to customers in October 2024. Bollinger said the 2025 B4 will be eligible for combined federal and state incentives that could be in excess of $100,000.
Should I Sell My MULN Stock?
Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.
Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.
Shares of Mullen Automotive have lost 99.83% year to date. This compares to the average annual return of -99.2%, meaning the stock has underperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.
Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Mullen Automotive stock currently has an RSI of 19.21, indicating oversold conditions.
For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.
MULN Price Action: According to Benzinga Pro, Mullen Automotive shares are down 14.7% at $8.91 at the time of publication Wednesday.
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Image: Courtesy of Mullen Automotive, Inc.
