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Mullen Automotive Inc. (NASDAQ:MULN), a player in the electric vehicle (EV) market currently trading near its 52-week low, announced significant updates to its corporate structure and incentive programs based on a recent SEC filing. According to InvestingPro analysis, the company faces significant financial challenges, with a weak financial health score of 0.51 out of 5, though its stock appears undervalued based on Fair Value calculations. The changes include an expansion of the company’s equity incentive plan and amendments to the CEO’s performance stock award agreements, following approval from stockholders at the Annual Meeting on March 13, 2025.
The stockholders approved two amendments to the 2022 Equity Incentive Plan. The first amendment adds an additional 20 million shares available for awards, while the second introduces an automatic annual increase of 10% in the total number of shares available, based on the number of shares outstanding as of the end of the preceding fiscal year. These changes come as InvestingPro data reveals the company is rapidly burning through cash, with negative free cash flow of $161.33 million in the last twelve months.
Furthermore, amendments to the 2022 and 2023 CEO Performance Stock Award Agreements were also approved, extending the deadlines for achieving certain milestones tied to stock awards for CEO David Michery. The adjustments include extended timelines for capital raising, vehicle completion, revenue benchmarks, battery development, and potential joint ventures or acquisitions, with the aim of aligning the CEO’s incentives with the company’s long-term goals.
The filing also detailed voting results on several other proposals from the Annual Meeting, including the election of directors and approval of the issuance of shares exceeding the 19.99% exchange cap for convertible notes and related warrants. However, a proposal to increase the authorized number of preferred shares was not approved.
The decisions made at the Annual Meeting reflect Mullen Automotive’s strategic efforts to incentivize leadership and align the interests of its executives with those of its shareholders. As the company continues to navigate the competitive EV landscape, these updates to its equity incentive plan and CEO performance awards are designed to support its future growth and innovation. InvestingPro subscribers have access to 18 additional key insights about Mullen’s financial position, including detailed analysis of its debt structure, profitability metrics, and market performance indicators.
This report is based on a press release statement and the latest SEC filing by Mullen Automotive Inc.
In other recent news, Mullen Automotive has reported several significant developments. The company faces a potential delisting from the Nasdaq Capital Market due to its Market Value of Listed Securities falling below the required $35 million for an extended period. Mullen has until August 25, 2025, to regain compliance or risk delisting. Additionally, Mullen Automotive has announced the sale of its Mullen ONE electric cargo vans to Orange County, North Carolina, contributing to the county’s Climate Action (WA:ACT) Plan for an all-electric fleet by 2025. The Mullen ONE and Mullen THREE vehicles are also now available through the Sourcewell contract, facilitating easier procurement by U.S. government agencies and educational institutions.
In another strategic move, Mullen has partnered with EO Charging to provide electrification solutions for Bollinger Motors’ commercial fleet customers. This partnership aims to enhance the infrastructure support for electric commercial fleets in North America. Furthermore, Mullen Automotive has approved a reverse stock split of its Common Stock, with an exchange ratio ranging from 1-for-2 to 1-for-100, as decided by the Board. This decision is part of the company’s strategy to remain compliant with exchange listing requirements. The reverse stock split was approved during a Special Meeting of Stockholders, with a significant majority voting in favor.
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