The shares of Mullen Automotive Inc. jumped Wednesday after the electric vehicle maker announced it had retained a firm to assist it in combating illegal naked short selling activities.

After falling 6.3% to a new record low on Monday, the stock MULN, +0.41% rebounded 2.9% during morning trading. The stock suffered an 85.2% drop in June, despite reporting last week it had recorded revenue and was in “the best financial position in its history”.

The Brea, Calif., company announced on Wednesday that it had retained Christian Attar (formerly known as Christian Levine Law Group) in partnership with Warshaw Burstein LLP to combat naked short-selling, which is a way to take bearish bets against a stock .

Mullen has taken steps to uncover any possible wrongdoing based on the reports it received from ShareIntel LLC, a company that tracks shareholders.

Christian Attar, the company’s CEO, noted that he has successfully prosecuted market manipulators and recovered “millions” of dollars in damages for clients.

“Since the announcement made on April 28 we have been actively investigating naked selling. We now have enough information to have our law firm investigate and take action, where warranted, against any market manipulators who use naked short-selling, spoofing, or other illegal acts,” stated Chief Executive Officer David Michery.

The stock fell 95.9% in the last three months. Meanwhile, the Global X Autonomous and Electric Vehicles Exchange-Traded Fund DRIV -0.34% soared 15.2% and S&P 500 SPX -0.11% grew 8.7%.