Is it possible to gamble and win in the world of investing based on cool-looking cars and a dream of disruption? Perhaps, as California-headquartered electric vehicle manufacturer Mullen Automotive (NASDAQ:MULN) is among the most disruptive automakers around. Yet, MULN stock isn’t the type of asset you’ll want to take an oversized position in. It’s a buy, but not for the faint of heart.

Sure, governments around the world support EV adoption. Does this mean every EV startup will succeed in 2023? Not necessarily. The competition is fierce in this space and the global economy looks shaky.

Yet Mullen is pressing forward this year regardless of the skeptics macroeconomic conditions. That’s either admirable or foolhardy. I’ll call it admirable, but wouldn’t dare to wager more than a few dollars on Mullen Automotive.

What’s Happening with MULN Stock?

Like it or not, MULN stock is definitely a penny stock now. Mullen Automotive shares traded above $5 at the beginning of 2022, but that’s in the rearview mirror now. Shares now cost less than 30 cents apiece.

InvestorPlace Markets Analyst Thomas Yeung got me thinking about how Reddit traders like to discuss Mullen as a potential short-squeeze target. They can sometimes move low-priced stocks hundreds of percentage points up or down in a matter of weeks or days.

As a result, MULN stock could fluctuate in price like a cryptocurrency in 2023. If you take a large position, you could face substantial capital loss very quickly. That’s not really investing; it’s just gambling.

To borrow a phrase from Yeung, there could be a “series of inexplicable 100%-plus gains” this year for Mullen’s shareholders. Or, there could be disaster, and investors should always consider worst-case scenarios.

Have Fun and Be Aware with Mullen Automotive

If you invest a large amount of money in MULN stock, then you’ll want to delve deeply into Mullen Automotive’s financials. If you look back at last year’s second quarter to gauge its fiscal health, you’ll see its net earnings loss ballooned during that quarter.

If you’re only wagering a few dollars on MULN stock, though, then you can indulge in big dreams and ignore Mullen’s financials. With that in mind, you’re invited to glance at Mullen Automotive’s futuristic-looking vehicles and marvel at its two spacious U.S.-based production facilities.

That, really, is the crux of Mullen Automotive. The company could end up selling plenty of vehicles, both in America and abroad. But then, Mullen’s shareholders could also incur a total loss — only time will tell.

So, Is MULN Stock a Buy or Sell?

I’m willing to forgive Mullen Automotive’s painful-looking past financials for a moment. After all, many of today’s successful businesses once looked terrible on paper.

The point is, feel free to put a few dollars on the chopping block and take a chance on MULN stock. It’s a buy in 2023, as far as I’m concerned, though investors must temper their big dreams with small position sizes.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.