American EV maker Mullen continues to have an underperforming stock on their hands, and it appears the company believes a foul play might be behind all of that. Mullen shares saw another dip this week, losing 5.5% of its value on Thursday and then crashing another 5% in after-hours trading.
The company’s CEO David Michery addressed the struggling stock in a note to shareholders, saying that the trading price of shares isn’t a good indicator of the company’s worth.
“I am very disappointed by the performance of our stock,” Michery wrote. “I do not believe the trading price of our stock even closely resembles the company’s actual value. It is evident that, regardless of meeting significant corporate milestones (i.e., vehicle production completion within projected timelines), stock traders continue to place downward pressure on the stock, causing the price to fall.”
Michery went as far as saying that “unlawful trading practices” might be behind Mullen’s unsuccessful attempts to get its stock price up.
Mullen initiated several reverse-stock splits in recent months in order to stay above NASDAQ’s minimum price of $1 per share. The company had a 1-for-25 reverse stock split in May and then a 1-for-9 reverse stock split in early August. However, the price of shares hasn’t been able to take off even after these measures.