Mullen Automotive Inc. (NASDAQ: MULN) has finalized a 1-for-100 reverse stock split, effective June 2, 2025, as part of its strategy to meet Nasdaq's listing standards. This decision, approved by shareholders on May 21 and subsequently by the board of directors, will reduce the company's outstanding common shares from approximately 80 million to about 800,000. The stock will continue to trade under the same ticker symbol, with adjustments made to reflect the split.
The reverse stock split is a calculated effort to address Nasdaq's minimum bid price requirement, ensuring Mullen Automotive's continued presence on the exchange. This move is expected to stabilize the stock's market price, making it more attractive to investors and potentially increasing its liquidity. The company has assured that all existing equity instruments and convertible securities will be proportionally adjusted, with the exception of the 2022 Equity Incentive Plan, which remains unchanged.
As a Southern California-based electric vehicle manufacturer, Mullen Automotive has been actively expanding its commercial EV production. With operations in Tunica, Mississippi, and Mishawaka, Indiana, the company has made significant strides in the EV market. Its product lineup, including the Mullen ONE and Mullen THREE, has received certifications from the California Air Resource Board and the EPA, further solidifying its position in the industry. The Mullen THREE, in particular, offers eligible customers up to a $45,000 cash voucher through the HVIP approval, enhancing its market appeal.
Mullen Automotive's strategic initiatives, including the expansion of its commercial dealer network and securing Foreign Trade Zone status for its Tunica manufacturing center, underscore its commitment to growth and innovation in the electric vehicle sector. The reverse stock split is a pivotal step in ensuring the company's long-term viability and success, providing a foundation for future expansion and investor confidence in a highly competitive market.
