, Columnist
Meme Stock Mullen’s Dilution Machine Is Running Out of Road
Retail investors have learned a harsh lesson in shareholder dilution.
No more road.
Source: Bloomberg
This article is for subscribers only.
Electric-vehicle startups that don’t have Saudi Arabia or Jeff Bezos bankrolling them are resorting to desperate tactics to keep the lights on. Retail investors chasing the next Tesla Inc. risk being taken for a very costly ride.
Consider California-based Mullen Automotive Inc., which has yet to generate significant revenue and whose shares have lost 99% of their value since the start of 2022. Why? Look no further than its share count which has ballooned by almost 700 times during the same period, a near 70,000% increase.