The American electric car brand Mullen Automotive has once again narrowly avoided bankruptcy. But the threat of closure still looms.
Mullen Automotive, a smaller electric vehicle (EV) manufacturer, has managed to avert potential delisting from the Nasdaq stock exchange. The threat of delisting stems from the company's inability to maintain the minimum required price of $1 per share, a challenge even Polestar faced earlier this year.
Despite multiple warnings and repeated efforts to regain stability, Mullen continues to struggle to stay relevant in the stock market.
The first warning of a potential delisting came in September 2022, after the share price remained below the minimum threshold for 30 consecutive trading days. The original deadline to meet the requirement was set for March 2023, but Nasdaq later extended it to September 2023.
This was reported by Yahoo! Finance.
Although Mullen briefly managed to rise above $1 per share, the stock price fell below the limit again earlier this year. To meet Nasdaq's requirements, the company recently carried out a stock increase to raise new capital.
This move led to the cancellation of a planned hearing with the Nasdaq panel in November 2023, allowing Mullen to continue operations without the immediate risk of delisting.
However, uncertainty remains about the company's future, as Mullen has yet to begin production on any of its promised vehicles, despite showcasing several prototypes to the public.
Most recently, Mullen unveiled its Five RS model, an electric crossover with impressive specifications. The car was presented at the Consumer Electronics Show in Las Vegas in January and boasts two electric motors that together deliver 1,000 hp and 1,151 Nm of torque.
The Five RS can accelerate from 0 to 100 km/h in under two seconds and has a top speed exceeding 322 km/h.
Despite these promising figures and plans to begin production of the Five RS by late 2025, Mullen is far from proving it can deliver on its promises.
Like many other EV startups, the challenge lies not in making promises but in delivering on them. Several brands have already failed in this regard, including Fisker Inc., led by Danish entrepreneur Henrik Fisker.
