Mullen Automotive, Inc. (MULN) Declared Among the Worst Electric Vehicle Hustles
Robbins LLP is investigating Mullen Automotive, Inc. (NASDAQ: MULN) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws. Mullen is an electric vehicle company.
Mullen went public through a reverse merger with troubled payment processing company Net Element. On November 5, 2021, Mullen’s first day of trading, the stock closed at $11.77. By February 22, 2022, the stock had fallen to a low of $0.61. After Mullen made a series of representations regarding “significant advancement” on the development of solid-state batteries and the acquisition of an unnamed Fortune 500 customer, the stock now trades around $2.40.
On April 6, 2022, Hindenburg Research published a report calling Mullen “one of the worst” electric vehicle hustles. Among other things, Hindenburg observed that “[d]espite only spending ~$3 million in R&D in 2021, Mullen claims its solid-state battery technology is on track for commercialization in 18 to 24 months, putting it [a]head of every major technology and automaker in the industry who have collectively invested billions on solving the problem.” The Hindenburg report also alleged that the Chief Executive Officer of EV Grid, Inc., which makes batteries and battery management systems for vehicles, refuted a press release issued by Mullen regarding test results for its battery, stating “[w]e never would have said that” and “[w]e never did say it and certainly wouldn’t have said it based on the results of testing that battery.” Additionally, the Hindenburg report alleged that Mullen’s claims to be in a joint venture with NextMetals Ltd. to create a solid-state battery were refuted by a NextMetals senior executive who said it “‘was a nonstarter’ and ‘didn’t exist.'” On this news, Mullen’s stock price fell $0.07 per share, or 2.57%, to close at $2.65 per share on April 6, 2022.
Next Steps: If you own shares of Mullen Automotive, Inc. (MULN), you have legal options. Submit a form for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
