Mullen Automotive's stock rockets on record volume after EV maker vows to 'take action' against naked short sellers

By Tomi Kilgore

Mullen's stock bounces as volume surpasses 1 billion shares, after closing at a record low on Monday

Shares of Mullen Automotive Inc. skyrocketed Wednesday on massive volume, after the electric-vehicle maker said it retained a law firm to help it combat illegal naked short-selling activities.

The stock (MULN) bounced 58.7% in afternoon trading, after closing on Monday at a record low of 10.1 cents. Trading volume exploded to 1.07 billion shares, more than double the previous one-day record of 450.0 million shares on June 21, 2023, and nearly seven-time the full-day average over the past 30 days of about 160.0 million shares.

The EV maker's stock had suffered a record 85.2% monthly plunge in June, even after the company reported last week that it recorded revenue for the first time and that it was in the "best financial position" in its history.

On Wednesday, the Brea, Calif.-based company said it retained Christian Attar, formally known as Christian Levine Law Group, in partnership with Warshaw, Burstein LLP, to combat naked short selling, which is an illegal way of taking bearish bets against a stock.

Based on reports received from share-tracking company Shareholder Intelligence Services LLC, or ShareIntel, Mullen believes its stock may have been the target of a market-manipulation scheme -- naked short selling -- and has taken action to expose any potential wrongdoing.

The company noted that Christian Attar has prosecuted and collected "millions of dollars" in total damages on behalf of clients from those who have engaged in market manipulation schemes.

"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 Chief Executive Officer David Michery.

The stock has plummeted 93.7% over the past three months, while the Global X Autonomous and Electric Vehicles exchange-traded fund (DRIV) has rallied 15.1% and the S&P 500 has advanced 8.8%.

-Tomi Kilgore

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07-05-23 1500ET

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