Mullen Automotive: Big Promises That Ended in 90% Stock Drop — Could It Have Gone Differently?

Court: C.D. California

Case: 2:22-cv-03026

After numerous reverse splits, stock drops, and undelivered cars, it's worth digging a little deeper into Mullen’s history and how investors can recover their losses.

Mullen Automotive went public in November 2021 with big promises, positioning itself as an EV innovator with cutting-edge technology and game-changing vehicles.

But by early 2022, despite the announcements, $MULN failed to deliver its promises of launching the Dragonfly K50 supercar or the MX-05 electric SUV. A Hindenburg Research report revealed that the company inflated battery performance claims, overstated production capabilities, and continued to take reservations for vehicles it couldn’t deliver.

On top of that report, Mullen was also accused of rebranding Chinese EVs, lacking EPA certifications to sell vehicles in the U.S., and overstating partnerships with companies like Qiantu Motors. When all these issues came to light, Mullen’s stock plummeted over 90% from its IPO highs. Afterward, investors filed a lawsuit against the company.

Fast forward to today, Mullen has agreed to a $7.25M settlement to resolve these claims. So, if you bought shares during the IPO hype and were impacted, you might be eligible to file a claim and recover some of your losses. They’re still accepting claims even though the deadline has passed.

Now, the reality is that Mullen is still struggling. The company burns through $50M per quarter while generating minimal revenue, raising doubts about its long-term viability.