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Mullen Automotive (MULN)
NASDAQ:MULN

Mullen Automotive (MULN) AI Stock Analysis

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Mullen Automotive

(NASDAQ:MULN)

21Underperform
Mullen Automotive's overall stock score is very low due to severe financial challenges, indicated by unsustainable losses and negative equity. Technical indicators also show a lack of positive momentum, and valuation metrics are unfavorable. While recent corporate events present mixed implications, the overall outlook remains bleak, emphasizing significant risks and the need for restructuring.

Mullen Automotive (MULN) vs. S&P 500 (SPY)

Mullen Automotive Business Overview & Revenue Model

Company DescriptionMullen Automotive, Inc., an electric vehicle company, manufactures and distributes electric vehicles. It also operates CarHub, a digital platform that leverages AI to offer an interactive solution for buying, selling, and owning a car; and provides battery technology and emergency point-of-care solutions. The company was founded in 2014 and is based in Brea, California.
How the Company Makes MoneyMullen Automotive makes money primarily through the sale of its electric vehicles, which form the core of its revenue model. The company designs and manufactures EVs, which are sold directly to consumers or through partnerships with dealerships. Additionally, Mullen may generate revenue from after-sales services such as maintenance and repairs, as well as from any proprietary technology or software solutions they offer as part of their vehicles. Key revenue streams include vehicle sales, potential licensing agreements for technology, and strategic partnerships with other automotive or tech companies that can enhance their product offerings. Significant factors contributing to earnings may include government incentives for electric vehicle adoption, strategic collaborations, and advancements in EV technology that appeal to environmentally conscious consumers.

Mullen Automotive Financial Statement Overview

Summary
Mullen Automotive is facing severe financial difficulties across all financial statements. The income statement shows unsustainable losses and declining revenues, the balance sheet reflects high leverage with negative equity, and cash flow statements indicate liquidity challenges. These factors combined pose significant risks and suggest an urgent need for financial restructuring.
Income Statement
10
Very Negative
Mullen Automotive's income statement reveals significant financial challenges. The company has recorded negative gross and net profit margins, with TTM gross profit margin at -6045.88% and net profit margin at -10536.93%. Revenue growth is inconsistent, with the latest annual revenue decreasing to $1.09 million from $65.7 million in 2021. These figures indicate severe profitability issues and unstable growth trajectory.
Balance Sheet
5
Very Negative
The balance sheet highlights critical financial instability. The company has a negative stockholders' equity of $103.1 billion, indicating liabilities far exceed assets. The debt-to-equity ratio is not calculable due to negative equity. These figures reflect high leverage and financial distress, posing significant risk to stakeholders.
Cash Flow
15
Very Negative
Cash flow analysis shows substantial negative free cash flow of $25.7 billion TTM, with operating cash flow also negative. The free cash flow to net income ratio is not favorable, indicating that the company struggles to generate cash from operations. This suggests liquidity issues and challenges in sustaining operations without external financing.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
4.01M1.09M366.00K0.0065.71M65.00M
Gross Profit
-19.47M-15.80M92.12K-3.72M64.48M6.10M
EBIT
-383.86M-391.83M-377.77M-96.99M-22.40M-12.09M
EBITDA
-472.62M-438.35M-490.03M-93.71M-21.68M-1.49M
Net Income Common Stockholders
-510.55M-457.06M-972.25M-740.32M-65.41M-48.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.33M10.32M155.27M54.09M42.17K33.37K
Total Assets
173.02M178.63M421.71M302.59M17.17M21.99M
Total Debt
27.31M19.94M13.16M13.81M41.91M35.15M
Net Debt
24.99M9.62M-142.10M-40.28M41.86M35.12M
Total Liabilities
267.23M195.18M148.90M145.64M78.88M64.49M
Stockholders Equity
-103.07M-28.56M208.95M58.70M-61.71M-42.50M
Cash FlowFree Cash Flow
-161.33M-200.30M-287.10M-77.82M-17.68M-4.94M
Operating Cash Flow
-151.23M-185.56M-179.17M-65.80M-17.52M-4.37M
Investing Cash Flow
-2.23B-16.15M-107.92M-47.15M-161.78K-567.01K
Financing Cash Flow
76.54M56.76M358.42M197.28M17.69M2.75M

Mullen Automotive Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.74
Price Trends
50DMA
205.79
Negative
100DMA
3149.71
Negative
200DMA
124255.66
Negative
Market Momentum
MACD
-95.61
Negative
RSI
20.80
Positive
STOCH
1.45
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MULN, the sentiment is Negative. The current price of 0.74 is below the 20-day moving average (MA) of 5.21, below the 50-day MA of 205.79, and below the 200-day MA of 124255.66, indicating a bearish trend. The MACD of -95.61 indicates Negative momentum. The RSI at 20.80 is Positive, neither overbought nor oversold. The STOCH value of 1.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MULN.

Mullen Automotive Risk Analysis

Mullen Automotive disclosed 53 risk factors in its most recent earnings report. Mullen Automotive reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Mullen Automotive Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$6.55B11.403.24%4.25%2.38%-21.28%
REREE
45
Neutral
$82.73M-190.08%
38
Underperform
$10.83M-86.66%-81.46%-2552.53%
38
Underperform
$4.14M
36
Underperform
$83.01M-207.37%-31.25%98.68%
21
Underperform
$2.06M-950.02%996.94%98.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MULN
Mullen Automotive
0.74
-1,901,999.06
-100.00%
KXIN
Kaixin Auto Holdings
1.01
-6.73
-86.95%
NWTN
NWTN
0.38
-6.75
-94.67%
FFAI
Faraday Future Intelligent Electric
1.14
-0.82
-41.84%
REE
REE Automotive
2.85
-1.47
-34.03%
PEVM
Phoenix Motor Inc
0.09
-0.51
-85.00%

Mullen Automotive Corporate Events

Delistings and Listing ChangesStock Split
Mullen Automotive Announces 1-for-100 Reverse Stock Split
Neutral
Apr 11, 2025

Mullen Automotive announced a 1-for-100 reverse stock split of its common stock, effective April 11, 2025, to comply with Nasdaq’s minimum bid price requirement. The reverse split reduced the number of outstanding shares from approximately 238.7 million to 2.4 million, while maintaining the same trading symbol and adjusting the CUSIP number. This move aims to stabilize the company’s stock price and maintain its Nasdaq listing.

Spark’s Take on MULN Stock

According to Spark, TipRanks’ AI Analyst, MULN is a Underperform.

Mullen Automotive’s overall stock score is low, driven by severe financial challenges and negative technical indicators. The termination of strategic agreements and compliance issues further stress the company’s situation. Despite some positive corporate governance changes, the stock remains high-risk due to persistent financial instability and market conditions.

To see Spark’s full report on MULN stock, click here.

M&A TransactionsBusiness Operations and Strategy
Mullen Automotive Ends Agreement with Volt Mobility
Negative
Mar 20, 2025

On March 14, 2025, Mullen Automotive Inc. terminated its Purchase Agreement with Volt Mobility Holding Ltd., which was initially established on August 23, 2024, and later amended on November 4, 2024. This agreement involved the exclusive distribution of Mullen’s commercial EVs in the United Arab Emirates at preferred wholesale pricing, impacting the company’s strategic operations in the region.

Shareholder MeetingsBusiness Operations and Strategy
Mullen Automotive Approves Key Amendments at Annual Meeting
Positive
Mar 14, 2025

On March 13, 2025, Mullen Automotive held its Annual Meeting of Stockholders, where key amendments to the 2022 Equity Incentive Plan were approved. These amendments included an increase in the number of shares available for awards and an automatic annual increase in shares, which could enhance the company’s ability to attract and retain talent. Additionally, amendments to the CEO Performance Stock Award Agreements were approved, extending deadlines for achieving specific milestones related to capital, vehicle completion, revenue, battery development, and joint ventures. These changes are likely to impact the company’s strategic goals and operational focus, potentially benefiting stakeholders by aligning executive incentives with company performance.

Shareholder MeetingsStock Split
Mullen Automotive Approves 1-for-60 Reverse Stock Split
Neutral
Feb 18, 2025

On January 31, 2025, Mullen Automotive held a Special Meeting of Stockholders where a 1-for-60 reverse stock split of its common stock was approved to meet Nasdaq’s $1.00 minimum bid price requirement. Effective February 18, 2025, the company’s shares began trading on a split-adjusted basis with no change in the total authorized shares or the par value. The move aims to maintain Mullen’s Nasdaq listing, with adjustments made to convertible securities and warrants to reflect the new stock structure.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.