What's Going On With Mullen Automotive Stock Today?

Mullen Automotive, Inc. MULN shares are trading higher on Tuesday. The stock may be rebounding following recent struggles.

What To Know: Mullen stock has been in a downtrend since the early 2023. Most recently, shares were hit last Thursday after the company announced that it filed a preliminary proxy statement to the SEC to hold a stockholders' meeting to effect a reverse stock split of the company's common stock.

The exchange ratio of the split is to be between 1-for-2 to 1-for-100, although the board of directors will decide the exact exchange ratio after the approval of the reverse split by stockholders. The stated purpose of the split is to regain compliance with the Nasdaq minimum bid price listing rule. The meeting is to be held on Dec. 15.

News of the announcment dragged on the stock into Monday, on which the company also provided an update on its lawsuit against TD Ameritrade, Charles Schwab, National Finance Services and others. The update included information such as an order issued by Judge Analisa Torres.

However, shares rebounded by nearly 37% on Tuesday on unusually high volume. According to data from Benzinga Pro, the stock experienced above-average trading volume of 98.43 million shares compared to its average volume of 55.23 million.

Mullen stock also has elevated short interest with 16.39% of shares currently sold short, which could have helped to fuel the price move.

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MULN Price Action: Shares of MULN were up 27.7% at $0.29 at the time of publication, according to Benzinga Pro.

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