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MULN holds onto 5% gain as profit-taking melts rally



  • MULN stock has fallen 19% since receiving notice that NASDAQ exchange would continue to honor its listing.
  • Mullen Automotive had been in violation of a rule requiring its share price to remain above $1. 
  • NASDAQ has given Mullen until January 22, 2024, to keep its share price above $1 for 20 consecutive trading sessions.
  • Mullen CEO David Michery will hold a shareholder meeting on December 15 to vote on a reverse split with a ratio between 1-for-2 to 1-for-100.


Mullen Automotive (MULN) stock’s double-digit gain on Tuesday has dissipated late in the session to a +5% gain as traders take profits. MULN stock’s higher open was a relief for shareholders, who were dealt a 9.3% decline to start the week on Monday.

Mullen stock was unable to hold onto its rally following last Thursday’s announcement that the NASDAQ exchange will give the company further time to push its stock price above the necessary $1 threshold. Friday and Monday’s sell-off may be over, however, as Mullen stock has rallied as high as $0.34 on Tuesday, though price action has moved back to near $0.27.

The US market is attempting to advance on Tuesday as investors look ahead to the Federal Reserve’s interest rate decision on Wednesday. The NASDAQ Composite, Dow Jones and S&P 500 have all moved from morning losses to afternoon recoveries.

Mullen stock news

On Thursday, Mullen announced two requirements that the NASDAQ Hearings Panel provided in order to retain its listing on the well-known exchange:

“1. on or before Jan. 22, 2024, the Company must demonstrate compliance with Listing Rule 5550(a)(2), by maintaining a closing bid price of $1 per share for 20 consecutive trading sessions; and

2. on or before March 8, 2024, the Company must demonstrate compliance with Listing Rule 5620(a) by holding an annual shareholder meeting.”

CEO David Michery has already announced a meeting to vote on the reverse split set for December 15. Much of the downward pressure on Mullen Automotive has come from the knowledge that the electric vehicle (EV) manufacturer will need to effect a serious reverse split in order to drive the share price above $1.

“I am pleased NASDAQ gave the Company this opportunity to continue implementing its business plan. We are diligently working to regain and maintain compliance with Nasdaq’s continued listing requirements,” Michery said in a statement.

Management already failed a similar policy in late August when it effected a 1-for-9 reverse split that was not enough to keep the share price above the threshold. MULN shares fell to $0.60 in the leadup to the September 5 date given by NASDAQ to retain its share price. 

This time around, shareholders are expecting management to realize a much larger reverse split to make sure there is no chance the share price will fall below the $1 level before January 22. Management should still have the majority of its $25 million buyback program available to drive the share price higher. As of September 27, management said it had only spent $5,610,600 of the funds available for share buybacks and has not updated this figure since.

Mullen Automotive FAQs

Mullen Automotive is a publicly-traded development-stage electric vehicle company based in Brea, California that typically uses outside partnerships to manufacture its vehicles. The company was founded in 2014 and currently sells self-designed electric delivery vehicles. Besides its commercial offerings, Mullen plans to begin manufacturing its Mullen FIVE EV crossover in late 2024 or early 2025. Mullen Automotive went public on the NASDAQ exchange through a reverse merger in late 2021.

David Michery has been the company’s CEO since he founded and incorporated the company in 2014. The existing company came from the merging of CODA Automotive and Mullen Motor Cars through acquisition. Michery is joined by Chief Financial Officer Jonathan New, Chief Commercial Officer John Schwegman and President of the Automotive Division Calin Popa.

Through a partnership with Randy Marion Automotive Group, Mullen distributes its Mullen One delivery van that has an electric range of 110 miles. Through an agreement with a Chinese manufacturer and distributor based in Ireland, the company also distributes the Mullen-GO Commercial Urban Delivery EV in Europe. In July 2023, Mullen will begin commercial production at its facility in Mississippi of its Class 3 EV Cab Chassis long-haul truck for immediate delivery. Through its 60% ownership stake in Bollinger Motors, Mullen will also reap the benefits of that company’s B1 SUV and B2 pickup truck, as well as other commercial vehicles in the future. The Mullen FIVE crossover vehicle is not slated for production until at least late 2024, but it is already taking reservations.

Mullen has been diluting its stock since going public in late 2021. This is because the company as of yet currently has little revenue from operations and no profits. The stock has fallen over 99% since the company’s reverse merger in November 2021, and the rapid dilution is mostly to blame. Taking into account Mullen’s 1-for-25 reverse stock split on May 4, 2023, Mullen had 33,338,727 shares outstanding on September 30, 2022, but 126,281,274 shares on March 31, 2023. The company is allowed to sell up to 200 million shares under current authorization.

Mullen stock forecast

Mullen stock has registered a serious rally on Tuesday, which might stem from management using some of its buyback funds. Mullen stock has been in a downtrend since at least September 18.

Bulls will need to push the MULN share price above the 21-day Simple Moving Average (SMA) if they want any sustained rally to occur. The 21-day SMA is moving just below $0.36 on Tuesday. Most traders will likely wait for the reverse split to arrive in December. Support just above $0.22 stems from the floor found there on October 23 and 24.

MULN daily chart

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