Mullen share value plummets by over 90% in first half of 2023
By Bradley Osborne - 1st August 2023
USA – Over the past several months, the share price of new battery electric vehicle manufacturer Mullen Automotive Inc has tumbled by 90%, from USD3.25 at the end of March to USD0.32 per share on 13 June. As of writing (25 July), the company’s value stood at USD0.14 per share.
In a letter to shareholders on 15 June, Mullen stated that it was currently trading at a discount to its current cash position of USD135m or USD0.38 per share. An announcement following this, published on 5 July, Mullen said it was retaining the services of lawyer Christian Attar and Warshaw, Burstein LLP to investigate alleged naked short selling activities. Based on reports from consultant ShareIntel, Mullen stated that it may have been the target of a “market manipulation scheme”. It alleges that market traders may have been selling shares to buyers without having first bought them from the company (i.e., “naked short selling”).
