MULN stock experiences volatility following reverse split and EV expansion announcements

MULN stock has recently faced significant market fluctuations. On February 18, 2025, Mullen Automotive executed a 1-for-60 reverse stock split to comply with Nasdaq’s minimum bid price requirement. This strategic move aimed to boost the stock price by reducing the number of outstanding shares. However, the immediate market reaction was negative, with shares dropping over 25% post-split.

Details of the reverse stock split-MULN stock

The reverse split was approved by shareholders on January 31, 2025, and became effective on February 18. The company’s goal was to meet Nasdaq’s $1.00 minimum bid price requirement to maintain its listing. Despite the structural change, investor confidence remains shaky.

Expansion plans for Mullen’s EV lineup

In an effort to rejuvenate its market presence, Mullen announced plans to expand its electric vehicle lineup. The company is focusing on the production of its Mullen FIVE RS EV Crossover, aiming for a launch in Germany by December 2025. The vehicle boasts impressive specs, including a top speed of over 200 mph and acceleration from 0-60 mph in under two seconds. Mullen also plans to expand sales to other European countries, the UAE, and South Africa in 2026.

Investor sentiment and future outlook

Despite the ambitious expansion plans, investor sentiment remains cautious. The reverse split, while a strategic move to maintain Nasdaq compliance, has raised concerns about the company’s financial health and long-term viability. Market analysts suggest that Mullen needs to demonstrate consistent performance and deliver on its EV promises to regain investor trust.

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Conclusion

MULN stock is at a critical juncture. While the reverse split was a necessary step for Nasdaq compliance, the company’s future hinges on the successful launch and adoption of its new EV models. Investors and stakeholders will be closely monitoring Mullen’s performance in the coming months.