Mullen Automotive Faces Challenges Amid Recent Developments
By ATTN Desk · Editorial oversight: Sean Han
Mullen Automotive Inc. (NASDAQ: MULN)
Introduction
Mullen Automotive Inc. is a Southern California–based electric vehicle (EV) manufacturer incorporated in 2014. The company went public via a reverse merger on November 5, 2021, and develops clean-energy commercial vehicles under brands including Mullen ONE (Class 1 cargo van) and Mullen THREE (Class 3 cab-over utility truck). Its headquarters are in Brea, California.
Corporate Structure
- Employees: Approximately 51–200
- Manufacturing Facilities:
- Tunica, Mississippi (120,000 sq ft)
- Mishawaka, Indiana (650,000 sq ft)
- Leadership:
- David Michery, Founder & Chief Executive Officer
- Dealer & Service Network:
- Seven commercial dealers covering the West Coast, Midwest, Pacific Northwest, New England, and Mid-Atlantic regions
Recent Developments and News
- April 9, 2025: Announced a 1-for-100 reverse stock split effective April 11 to comply with Nasdaq’s $1.00 minimum bid requirement.
- April 17, 2025: Mullen subsidiary Bollinger Motors delivered its first Class 4 electric truck order to EnviroCharge.
- April 21, 2025: “Cashflow on Wheels,” a multistate FedEx and Amazon DSP consolidator, purchased 20 Mullen THREE Class 3 trucks.
- April 22, 2025: Bragar Eagel & Squire, P.C. filed a class action complaint covering May 1, 2022, to March 26, 2025, alleging misleading statements about partnerships, reverse splits, and financing.
- April 30, 2025: Charged EV Magazine reported a multistate FedEx and Amazon consolidator bought 20 Mullen Class 3 trucks.
- May 6, 2025: Bollinger delivered a B4 commercial electric truck to New York City’s Lower East Side Ecology Center.
- May 9, 2025: Mullen and GEM Yield Bahamas Ltd. executed a settlement agreement; GEM has 55 days (plus extensions) to complete due diligence on transferring Mishawaka assets.
- May 20, 2025: Filed Form 10-Q for the quarter ended March 31, 2025.
- May 22, 2025: Filed Form 8-K disclosing board committee appointments and other corporate governance items.
Financial and Strategic Analysis
| Metric | Value (TTM or MRQ) |
|---|---|
| Stock Price (as of 2025-06-02) | $5.46 |
| Daily Volume | 274,343 shares |
| Market Capitalization (intraday) | $295.6 million |
| Revenue (TTM) | $8.93 million |
| Net Income (TTM) | –$439.11 million |
| Cash (MRQ) | $1.4 million |
| Price/Sales Ratio (TTM) | 0.95 |
| Profit Margin | 0.0% |
| Return on Assets (TTM) | –84.62% |
| Return on Equity (TTM) | –1,851.31% |
- Liquidity & Capital: Cash on hand is limited ($1.4 million). The reverse split aims to maintain Nasdaq listing.
- Incentive Eligibility:
- Up to $7,500 federal EV tax credit
- Up to $45,000 California HVIP incentive
- Up to $15,000 Massachusetts MOR-EV incentive
- Strategic Partnerships: Acquisition of Bollinger Motors (Class 4 trucks). Dealer network includes Papé Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group.
- Product Sourcing: Primarily rebadged Chinese imports (e.g., Yuejin-manufactured Mullen THREE, Wuling-based Mullen ONE).
Market Position and Industry Context
- Segment Focus: Class 1–3 commercial EVs targeting last-mile delivery and utility fleets.
- Regulatory Certifications: CARB and EPA certified for Mullen ONE and THREE.
- Competitive Landscape:
- Competes with established OEMs and startups in the commercial EV space.
- Faces sector consolidation and financing challenges among EV startups.
- Dealer Footprint: Coverage across key U.S. regions with potential growth in the Southeast and Mid-South markets.
- Manufacturing Advantages: Foreign Trade Zone status at both plants offers duty and tax savings on exports.
tl;dr
- On April 11, 2025, Mullen effected a 1-for-100 reverse stock split to meet Nasdaq’s $1.00 bid requirement.
- A class action complaint was filed April 22, 2025, alleging misleading disclosures from May 2022 to March 2025.
- On May 9, 2025, Mullen and GEM Group signed a settlement agreement, pausing collection activity during a 55-day due diligence period.
- Commercial traction includes multiple fleet orders in April and May 2025, and the first Bollinger B4 Class 4 truck delivery.
- As of June 2, 2025, the stock trades at $5.46 with a market cap near $296 million; the company reported $8.93 million in trailing revenue and a $439 million net loss.
- Upcoming catalysts include Q2 2025 earnings, completion of GEM due diligence, and continued production ramp at Tunica and Mishawaka.