Mullen Automotive (MULN) recently took drastic action to maintain its Nasdaq Exchange listing, executing a reverse stock split — a strategy often viewed by investors as a last-ditch effort to avoid delisting. While this move provides the struggling electric vehicle maker with a temporary lifeline to remain on the exchange, MULN stock has endured catastrophic losses throughout 2025. Investor confidence has severely eroded amid persistent financial distress, mounting operational challenges, and escalating concerns over the company’s viability.

In this article, we’ll examine what the reverse stock split means for Mullen, evaluate the company’s fundamentals, and explore whether investors should view this move as a second chance — or a final warning.

About Mullen Automotive Stock

Mullen Automotive (MULN) is a development-stage electric vehicle company engaged in multiple segments of the automotive industry. The company is building and supplying the latest generation of commercial trucks. It also has a lineup of high-performance passenger vehicles at various stages of development, slated for launch in the coming years, contingent on available financing. 

At its peak, the company reached a market capitalization of more than $600 million as investors flocked to EV stocks. The EV hype enabled the company to acquire several businesses, including Bollinger Motors, Electric Last Mile Solutions, and Romeo Power’s assets. Still, the company’s vehicles have struggled to gain widespread popularity, and its continued heavy cash burn has caused investor interest to fade rapidly. The company is currently valued at under $10 million. 

Shares of the struggling electric vehicle maker have shed most of their value since the start of the year, as legal challenges, financial strain, and weak sales growth have eroded investor confidence. At the same time, MULN stock has been heavily influenced by speculation and hype among retail investors, undergoing sharp price surges followed by steep declines.

Mullen Executes 1-for-100 Reverse Stock Split

On June 2, MULN stock underwent a 1-for-100 reverse stock split that had been approved by the company’s board of directors last week. Following the reverse stock split, the company’s common stock was assigned a new CUSIP number: 62526P802. This move decreased the number of outstanding shares from roughly 80 million to about 800,000. In other words, every 100 shares of Mullen’s common stock was combined into 1 new post-split share. 

The reverse stock split was designed to help the company meet the $1 minimum bid price requirement to maintain its listing on the Nasdaq exchange. Still, the company stated that there is no guarantee it will meet the minimum bid price requirement.

Meanwhile, this marked the company’s seventh reverse stock split since early 2023. MULN stock ended its first split-adjusted trading session down more than 32%.

Recent News for MULN Stock

On June 4, MULN stock spiked more than 198% after the company issued notes under two securities purchase agreements. Mullen entered into an agreement with Esousa Group Holdings LLC and TD Capital No 1 Pty Limited for a total purchase price of $11 million. A separate agreement with TD Capital No 1 Pty Limited carries a purchase price of $2.58 million.

On June 3, Mullen announced the relaunch of its ultra-high-performance FIVE RS EV Crossover, with vehicle sales in Germany scheduled to begin in December 2025. The company announced it had successfully completed 800-volt battery performance testing at TUV SUD’s Munich facility and is now moving forward with on-road testing for final validation. It also intends to launch the FIVE RS in additional EU countries, the UAE, and South Africa in 2026.

On June 2, Mullen Automotive announced it had regained full control of Bollinger Motors and settled recent claims and debt that had resulted in a court-ordered receivership for Bollinger. Mullen stated that the transaction boosts shareholder equity by approximately $3.5 million and wipes out a substantial amount of debt. As part of the transaction, Mullen acquired an additional 21% stake in Bollinger, raising its total ownership to 95%. Mullen anticipates that integrating Bollinger’s capabilities into its EV ecosystem will generate substantial synergies, fueling innovation and supporting market expansion.

On May 9, Mullen entered into a settlement agreement with GEM Yield Bahamas Limited and GEM Global Yield LLC SCS. Under the terms of the settlement agreement, GEM has a 55-day due diligence period — extendable at GEM’s discretion — to assess the transfer of the Mishawaka assets as full satisfaction of the judgment.

MULN Posts Record Q2 Results but Runs Out of Cash

On May 20, Mullen Automotive reported its financial results for the second quarter of fiscal year 2025. The company generated $5 million in revenue for Q2, up from $33,000 in the same quarter a year earlier. CEO and Chairman David Michery described this as the company’s strongest quarterly performance to date, highlighting year-over-year growth exceeding 143-fold. This substantial revenue growth was driven by a customer waiving its right of return for 60 vehicles in January 2025.

The company also made solid progress in reducing expenses, having recently launched cost-cutting initiatives. Research and development expenses decreased by 57% year-over-year to $10.4 million in fiscal Q2. Also, general and administrative expenses decreased by 14% year-over-year to about $41.4 million, mainly driven by lower settlements and penalties, professional fees, and promotional costs. As a result, the company’s net loss attributable to stockholders narrowed to $47.1 million, down from $132.4 million in the same quarter last year.

Despite these positives, Mullen’s core challenge remains — it has virtually no cash on the balance sheet. The company cut its cash burn by 56.6% year-over-year to $52.4 million for the six months ended March 31, 2025, but the amount remains significant. And this comes at a time when the company held only $2.3 million in cash, cash equivalents, and restricted cash as of March 31. Although the latest securities purchase agreements offered some relief, the funds raised are insufficient to cover even the company’s quarterly cash burn rate based on figures from the six months ended March 31, 2025. With that, the company lacks the balance sheet strength to support its ongoing cash burn. 

The Bottom Line on MULN Stock

While Mullen’s reverse stock split may help the company retain its Nasdaq listing, it merely buys some time, as the core issue — a weak balance sheet — remains. Moreover, the latest securities purchase agreements do not alter the company’s long-term outlook, which is why I believe the stock will continue to face significant selling pressure amid mounting bankruptcy risks. And don’t forget to consider the speculative nature of the stock. Given all this, I do not recommend investing in MULN stock.