What's Going On With Mullen Automotive Stock?

Mullen Automotive Inc MULN shares are trading lower Thursday after soaring nearly 70% on Wednesday following a letter to shareholders from CEO David Michery.

What Happened: Michery published a letter to shareholders Wednesday afternoon addressing the company's declining stock value. Mullen shares are down more than 98% year-to-date.

"I previously announced that the Company engaged Share Intel and other parties to investigate what I suspect to be unlawful trading practices in our stock. We are assembling all the data received to date and should have something to announce in the coming days," Michery said. 

"I am extremely frustrated that the hard work of Mullen‘s dedicated team and the significant momentum and successes achieved to date are overshadowed by the unrealistic value attributed to our stock."

Michery highlighted the company's cash balance of $227.4 million and noted that Mullen recently announced a $25 million buyback. Michery also pointed out that he recently purchased shares. The Mullen CEO bought 102,040 shares at an average price of $0.9842 per share last week.

Mullen has until Sept. 5 to meet the Nasdaq's continued listing requirement of $1 per share. The Nasdaq generally requires a company to maintain a price above $1 per share for ten consecutive days to demonstrate ability to maintain long-term compliance.

See Also: EV Maker Mullen Debuts Ultra-High-Performance FIVE RS Demonstrator

MULN Price Action: Mullen shares closed Wednesday up 68.1% at 80 cents. The stock was down 3.76% at 77 cents at the time of publication, according to Benzinga Pro.

Photo: courtesy of Mullen Automotive.