Mullen Automotive Stock Is Racing Higher Tuesday: What's Going On?

Mullen Automotive Inc MULN shares are trading higher Tuesday after the company received a $150 million capital infusion.

What Happened: Mullen on Tuesday announced that it received commitments for $100 million in financing from a family office. Additionally, the company said it sold up to $50 million of senior secured convertible notes to family offices and high net worth investors. The company sold such investors $12.5 million in notes on May 14.

Mullen said it expects the new financing commitments to generate enough cash and cash equivalents to fund operations over the next 13 months for both Mullen and Bollinger Motors, including Bollinger Motors B4 vehicle production.

Mullen may also be getting a lift Tuesday following reports suggesting President Joe Biden will implement tariff hikes across electric vehicles, solar panels and batteries to protect American industries from unfair competition. The report indicates that Biden plans to quadruple tariffs on imported Chinese electric vehicles from 25% to 100% this year.

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It’s worth noting that several stocks with high short interest are rallying Tuesday amid the return of trader "Roaring Kitty" to social media.  Keith Gill, best known as "Roaring Kitty" on YouTube and X or "DeepF***ingValue" on Reddit, took to X over the weekend, posting a meme of a person leaning forward in a chair, which sparked a rally in GameStop and other heavily shorted stocks.

Mullen is ranked fifth on Fintel’s short squeeze leaderboard, which uses quantitative models to track companies that have the highest likelihood of experiencing a short squeeze. According to data from Benzinga Pro, 24.21% of Mullen’s float is currently sold short.

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MULN Price Action: Mullen Automotive shares were up 10% at $6.36 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Mullen Automotive.