Mullen Automotive Faces 28.8% Drop Post Reverse Split
By ATTN Desk · Editorial oversight: Sean Han
Mullen Automotive Inc.
Introduction
Mullen Automotive Inc. (NASDAQ: MULN) is a Southern California–based automotive company incorporated in 2014. It designs and manufactures all-electric commercial and consumer vehicles, operating two U.S. assembly plants in Tunica, Mississippi, and Mishawaka, Indiana. The company went public on November 5, 2021.
Corporate Structure
- Headquarters: Brea, California
- Manufacturing Facilities:
- Tunica, Mississippi (commercial vehicles)
- Mishawaka, Indiana (consumer vehicles)
- Employee Count: 51–200 (per LinkedIn)
- Key Leadership: CEO & Founder David Michery (over 25 years in management, marketing, and restructuring)
- Major Holdings & Partnerships:
- 95% ownership of Bollinger Motors (agreement reached June 2, 2025)
- Dealer network including Papé Truck, Pritchard Automotive, Ziegler Truck Group
Developments and News
- April 11, 2025 – Effective date for a 1-for-100 reverse stock split of common shares.
- May 9, 2025 – Settlement reached with GEM Group, including a 55-day due diligence period for potential transfer of the Mishawaka plant to satisfy a ~$30 million arbitration award.
- June 2, 2025 – Definitive agreement to acquire an additional 21% of Bollinger Motors, increasing total ownership to 95% and reducing debt.
- June 5, 2025 – Mullen added to the ComEd State Rebate Program, offering incentives to Illinois business customers.
- June 9, 2025 – Disclosure of the sale of Mullen ONE Class 1 cargo vans to Global Expert Shipping, facilitated through a partnership with Pritchard Automotive; additional orders are anticipated.
- Q1 2025 Results – Reported a net loss of $119 million on $3 million in sales; ongoing focus on cost reductions and domestic battery manufacturing.
Financial and Strategic Analysis
| Metric | Value |
|---|---|
| Share Price (2025-06-13) | $2.2997 |
| Daily Change (%) | –28.80% |
| Volume | 1,243,774 |
| Market Capitalization | $2.58 million |
| Enterprise Value / Revenue | 2.95× |
| Revenue (TTM) | $8.93 million |
| Net Income (TTM) | –$439.11 million |
| Total Cash (MRQ) | $1.4 million |
| Levered Free Cash Flow (TTM) | $79.62 million |
| Purchase Order (Class 1 Vans) | $200 million (6,000 units) |
| Federal EV Tax Incentive | Up to $7,500 per vehicle |
| California HVIP Incentive | Up to $45,000 per vehicle |
Strategic Initiatives
- Scale production of Mullen ONE (Class 1 cargo van) and Mullen THREE (Class 3 low-cab utility vehicle).
- Reservations are open for the Mullen FIVE EV Crossover, capable of 0–60 mph in 3.2 seconds, with an estimated range of 325 miles and a starting price of $55,000.
- Develop a supercar program (Mullen GT/GTRS) via the DragonFLY K50 IP partnership with aims for a 0–60 mph time under 2 seconds and a top speed exceeding 200 mph.
- Implement an end-to-end ecosystem that encompasses research, financing, manufacturing, and servicing.
Market Position and Industry Context
- Sector: Electric commercial and consumer vehicles
- Growth Forecast: Global EV market is forecasted to grow at a CAGR of 22.6% through 2027.
- Competitive Factors:
- Maintain a U.S.–based manufacturing footprint.
- Eligibility for combined federal and state incentives (federal tax credits, HVIP, MOR-EV).
- Partnerships with dealers to provide nationwide sales and service.
- Challenges:
- Significant net losses and limited cash reserves.
- Dependence on large purchase orders and incentive programs.
- Ongoing legal and financial resolution processes with GEM Group.
TL;DR
On June 13, 2025, MULN shares declined by 28.8% to $2.30 following the implementation of a 1-for-100 reverse split and a trading volume of 1.24 million shares. The company reported a $119 million net loss on $3 million in Q1 2025 sales. Key developments include a settlement with GEM Group regarding the Mishawaka plant, a $200 million purchase order for 6,000 Class 1 vans, and plans for the Mullen ONE deliveries alongside the launch of the Mullen FIVE EV Crossover. Mullen holds $1.4 million in cash and continues to operate under combined federal and state incentive frameworks while expanding its dealer network.