MULN Shares Rally: Opportunity or Volatility Trap?

Mullen Automotive (NASDAQ:MULN) has become a textbook penny stock story—plunging nearly 92% over the past year before staging a dramatic comeback. After bottoming at $0.18 per share, MULN surged roughly 92% within a single month, catching the attention of both retail traders and institutional players.

The Recent Momentum Behind MULN

The momentum isn’t without reason. Last month, the EV manufacturer landed a major contract: a 6,000-unit purchase order from Randy Marion Isuzu, LLC (part of one of America’s largest commercial vehicle dealer networks) valued at approximately $200 million. This deal validates Mullen’s I-GO Class 1 cargo van in the commercial delivery sector.

Beyond the order book, Mullen has been expanding its ecosystem. The company partnered with Loop Global to deliver integrated EV charging infrastructure, addressing a critical pain point for fleet operators. Meanwhile, its I-GO urban delivery vehicle has crossed the Atlantic, gaining traction in Europe through an exclusive distribution agreement—a potential revenue accelerator on the international stage.

Institutional Confidence vs. Market Reality

BlackRock’s recent 13F filing showed the investment giant added MULN to its holdings, lending credibility to the turnaround narrative. Such institutional backing typically signals confidence in the company’s trajectory.

Yet optimism must be tempered. The stock carries a weak Underperform Smart Score of 2 on TipRanks, reflecting broader concerns. Equity dilution remains a constant shadow over penny stocks, and capital access challenges could hamstring Mullen’s aggressive growth plans. Competition in the EV commercial space is intensifying, and macroeconomic headwinds threaten funding availability.

The Verdict

MULN presents a paradox: genuine business momentum paired with structural vulnerabilities. The $200 million purchase order and European expansion are real catalysts, but execution risk looms large. Short-term traders might find volatility appealing; long-term investors should approach with caution. The penny stock’s unpredictable swings suggest it remains a speculative play rather than a stable investment.