Why Is EV Maker Mullen Automotive Stock Tanking Today?

Shares of electric vehicle maker Mullen Automotive Inc. (NASDAQ:MULN) are plummeting today after the company said it will implement a 1-for-100 reverse stock split of its common shares, effective April 11, 2025, just after midnight Eastern Time.

The company aims to lift its share price to meet Nasdaq's minimum bid requirement and avoid potential delisting.

Mullen stated that its shares will remain listed under the symbol MULN. They’ll begin trading on a split-adjusted basis when markets open on April 11.

Also Read: EV Maker Mullen Automotive To Further Cut Costs And Slash Workforce: Details

The reverse stock split received shareholder approval during the company's annual meeting on March 13. The board was granted the authority to implement a split within a range of 1-for-2 to 1-for-100.

While the move increases the stock’s per-share price, it does not guarantee continued listing on the exchange.

Following the reverse stock split, each block of 100 existing shares will be combined into a single share. This move will shrink the total number of outstanding common shares from approximately 220 million to nearly 2.2 million.

The company will not issue partial shares; instead, any fractional holdings will be rounded up to the next full share.

All outstanding equity-based instruments such as awards, warrants, and convertible notes will be proportionally revised to align with the updated share count.

However, the total shares reserved under the company's 2022 Equity Incentive Plan will not be modified. The par value and the overall number of authorized shares for both common and preferred stock will also remain the same.

Also, Mullen has entered a partnership with Enpower Greentech Inc. today, to produce and supply SWIFT series solid-state batteries (SSBs). These advanced lithium-ion batteries will power commercial vehicles and serve a range of industrial uses, including aerospace, marine, medical devices, and drones.

The EV maker had assured last week that its electric vehicles, including those from subsidiary Bollinger Motors, are fully manufactured in the U.S. and unaffected by new tariffs on imported EVs and parts.

Price Action: MULN shares traded lower by almost 25% at last check Wednesday.

Read Next:

• This Beverage Maker, Tobacco Company And Packaged Food Giant Outshine In A Recession

Image: Shutterstock