Mullen Automotive (MULN) Surges 256%: What’s Behind the Explosive Rally?

Mullen Automotive Inc. (NASDAQ: MULN), the embattled EV manufacturer, shocked investors today with a staggering 256% surge in its stock price. The rally comes amid a flurry of speculation, high trading volume, and renewed interest in small-cap EV plays.

A Sudden Reversal of Fortune
Mullen shares, which have spent much of the past year in steady decline, suddenly caught fire in today’s trading session. At the heart of the move is a mix of short-covering pressure, viral retail investor momentum, and potential optimism around upcoming corporate developments.

According to trading data, volume exploded well above daily averages, pointing to heavy retail and algorithmic participation. MULN has become a trending ticker on several retail investor platforms and forums.

What’s Driving the Rally?

While there’s no official news from the company at the time of writing, the move could be driven by:

Short squeeze dynamics: MULN has had one of the highest short interests on the NASDAQ, and today’s move may reflect shorts racing to cover.
Speculative buying: Penny stock traders and momentum chasers are piling in, betting on a multi-day run.
Upcoming catalysts: Rumors continue to swirl about a potential update from the company, possibly involving vehicle deliveries, new partnerships, or financial restructuring.
Investor Caution Warranted
Despite the impressive move, investors should approach MULN with caution. The company remains heavily dilutive, has a history of failed milestones, and continues to face liquidity concerns. The stock is still trading far below its former highs, and its fundamentals remain weak.

This kind of move—while potentially profitable for nimble traders—often ends with sharp reversals once momentum fades.

Bottom Line
Mullen Automotive’s 256% rally is the latest reminder of how quickly sentiment can shift in the small-cap EV space. Whether this marks a genuine turnaround or a short-lived spike remains to be seen. For now, MULN is back in the spotlight—and traders are watching closely.