What's Going On With Mullen Automotive Stock Today?

Mullen Automotive, Inc. MULN shares are diving around 23% Friday.

On December 19, the company announced a 1-for-100 reverse stock split, which came into effect yesterday (December 21). 

The reverse stock split is primarily intended to bring the company into compliance with the $1.00 minimum bid price requirement for maintaining its listing on Nasdaq.

In this regard, in October, the company announced that it received a favorable decision from the Nasdaq Hearings Panel. However, it was subject to certain conditions (including the minimum bid price notion).

Meanwhile, the company said today it achieved a production milestone on December 13, 2023, with the 100th Mullen THREE, Class 3 cab chassis electric truck, rolling off the assembly line in Tunica, Mississippi. 

As of December 22, 2023, the company has completed 125 Mullen THREE's. 

"This is an important milestone for Mullen and demonstrates our EV assembly plant in Tunica is scaling up to meet the commercial vehicle production schedule that was planned at launch," said David Michery, CEO and chairman of Mullen.

The production plan is aligned with current customer purchase orders. Randy Marion previously placed a purchase order for 1,000 Class 3 trucks, the company said. Yesterday, Mullen said it delivered 38 Class 3 Vehicles to Randy Marion Automotive Group.

News provider kalkinemedia quoted posts from observers who guess that Mullen Automotive strategically announced the latest development in anticipation of a potential capital raise, potentially slated for 2024. 

Price Action: MULN shares are trading lower by 24.21% to $10.80 on the last check Friday.

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