Mullen Automotive, Inc. (NASDAQ:MULN) has experienced a decline in its stock value as of Monday. The company recently announced that it has applied for Foreign Trade Zone status from the U.S. Department of Commerce for its commercial vehicle manufacturing and assembly center in Tunica, Mississippi.
The application for Foreign Trade Zone status was submitted on March 25, with a decision expected within the next 30 to 90 days. If approved, this status would make Mullen eligible for various benefits, including the deferral of import duties, thereby easing pressure on the company’s cash flow.
Mullen anticipates that deferring working capital on domestic sales could lead to a significant reduction in capital outlays, estimated at around $10 million for the remainder of fiscal year 2024.
Currently, Mullen Automotive shares are trading below the stock’s 50-day moving average of $6.66, with 16.7% of shares being sold short according to data from Benzinga Pro.
Investors are closely monitoring Mullen Automotive stock to determine if this decline is temporary or indicative of a larger trend. The company’s application for Foreign Trade Zone status has sparked significant interest and speculation within the investment community.
For those interested in purchasing MULN stock, there are various options to consider. In addition to traditional brokerage platforms, investors can explore purchasing an exchange traded fund (ETF) holding the stock or seek exposure to the Consumer Discretionary sector, where Mullen Automotive is categorized, through a mutual fund or other financial instrument in a 401(k) strategy.
At the time of publication, Mullen Automotive shares are down by 8.46% at $4.76 according to Benzinga Pro.
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