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In a turbulent market environment, MULN (Mullen Automotive Inc. (NASDAQ:MULN)) stock has reached a 52-week low, trading at $10.6. InvestingPro analysis indicates the stock is in oversold territory, with a concerning "WEAK" overall Financial Health score of 0.62. This price level reflects significant pressure on the company’s valuation, as investors recalibrate their expectations in light of prevailing economic conditions. With a market capitalization of just $12.17 million and a concerning current ratio of 0.34, the company’s financial position remains challenging. The automotive sector has faced numerous headwinds, and MULN’s stock performance is indicative of the broader industry’s struggles. Discover more crucial financial metrics with InvestingPro, which offers 15+ additional investment insights. Over the past year, the stock has experienced a dramatic downturn, with Net Element Inc , which merged with Mullen Technologies Inc. to form Mullen Automotive Inc., seeing a staggering 1-year change of -99.98%. With revenue of just $1.09 million in the last twelve months and an EBITDA of -$250.65 million, this precipitous decline underscores the volatility and challenges that have beset the company in a competitive and rapidly evolving market.
In other recent news, Mullen Automotive has been making strategic moves on several fronts. The company recently approved a reverse stock split, a decision that was voted on and passed during a Special Meeting of Stockholders. The exact ratio of the split, ranging from 1-for-2 to 1-for-100, is to be determined by the Board.
In a bid to enhance its position in the electric vehicle market, Mullen Automotive is expanding its battery production capabilities at its Fullerton, California facility. The company acquired additional battery line equipment from Nikola (NASDAQ:NKLA) Corporation to boost the production of American-made battery packs, modules, and advanced solid-state polymers. The commencement of production at the Fullerton facility is planned for the second half of 2025.
Mullen Automotive has also secured repeat orders for its Mullen ONE, Class 1 EV cargo vans from two prominent California universities. The universities’ commitment to sustainability and carbon emissions reduction has led to an increased interest in Mullen’s commercial EVs.
Moreover, Mullen Automotive has regained compliance with Nasdaq Listing Rule 5250(c)(1) following the timely submission of its Annual Report on Form 10-K for the fiscal year ended September 30, 2024. This development ensures the continued listing and trading of Mullen Automotive’s common stock on The Nasdaq Capital Market.
Lastly, Mullen Automotive disclosed the issuance of additional convertible notes and warrants under an existing agreement, as part of its capital-raising efforts. The company issued approximately $4.2 million in principal amount of 5% Original Issue Discount Senior Secured Notes, convertible into shares of common stock, and five-year warrants for an aggregate of 8,255,933 shares of common stock.
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