Sometimes certain news may emerge about a company which may result in momentary optimism among investors and lead to a pump in the stock. However, in some cases the jump may only be short lived and may end up costing money.
Trading Data
On Wednesday, MULN stock went down 16% to $0.80 with more than 61.70 million shares, compared to its average volume of 146.22 million shares. The stock moved within a range of $0.7920 – 0.9300 after opening trade at $0.90.
Key Details
The case in point could be the Mullen Automotive (NASDAQ:MULN) stock. The company was in the news back on Wednesday this week when it came up with an update with regards to its solid state polymer battery testing initiative. The Chief Executive Officer of the company David Michery stated that everyone at Mullen was happy at the preconditioning results that had been obtained.
The announcement came as a significant boost for the stock yesterday and it ended up clocking notable gains during premarket trading period. While the news may have come as a source of positivity, a closer look at the company reveals a different picture.
For instance, it ought to be noted that the company spend only $3.1 million when it comes to research and development. That is clearly not enough for an electric vehicle maker. That was only 2% of what was spent by the solid state lithium battery developer QuantumScape. Hence, it may be a good idea to stay away from Mullen for the time being.
Technical Data
MULN stock is below the 20-Day and 50-Day Moving averages of $1.42 and $1.88 respectively. Moreover, the stock is trading below the 200-Day moving average of $5.97.
