Mullen Automotive to Implement Reverse Stock Split to Boost Nasdaq Compliance

Mullen Automotive Inc. (NASDAQ: MULN) announced it will conduct a 1-for-100 reverse stock split effective June 2, 2025, in an effort to regain compliance with Nasdaq's minimum bid price requirement. The shareholders approved the split on May 21, and the company's board of directors has finalized the implementation.

The reverse stock split will dramatically reduce the number of outstanding common shares from approximately 80 million to about 800,000. Investors will continue to trade under the same ticker symbol, with trading beginning on a split-adjusted basis. No fractional shares will be issued, and most existing equity instruments and convertible securities will be proportionally adjusted.

This strategic financial maneuver is critical for Mullen Automotive, as it seeks to maintain its Nasdaq listing by meeting the exchange's minimum $1.00 per share price requirement. The move is typical for companies struggling to maintain stock price stability and can help prevent potential delisting.

The reverse split comes as Mullen continues to develop its electric vehicle (EV) portfolio, including the Mullen ONE cargo van and Mullen THREE truck, both of which are California Air Resource Board and EPA certified. The company has also expanded its commercial dealer network and secured federal EV tax credit approval, positioning itself in the competitive electric vehicle market.

While reverse stock splits can signal financial challenges, they are often used as a tactical approach to meet exchange listing requirements and potentially restore investor confidence. The long-term impact will depend on Mullen Automotive's ability to execute its business strategy and demonstrate market viability in the rapidly evolving electric vehicle sector.