Shares of Mullen Automotive Inc. (NASDAQ: ) fell to a 52-week low, trading at $0.89, as the company faces a turbulent market environment. With a market cap of just $8 million and an EBITDA of -$267.7 million over the last twelve months, the company’s financial performance at InvestingPro is rated as POOR. This new low comes in sharp contrast to the performance over the past year, with Net Element Inc which merged with Mullen Technologies Inc. before the company’s NASDAQ listing, experiencing a dramatic 1-year change of -99.93%. Investors are closely monitoring MULN’s strategic moves and market conditions as the company navigates these challenging financial waters. Technical analysis from InvestingPro indicates that the stock is currently in oversold territory, with worrisome metrics including a current ratio of 0.53 and negative gross profit margins. InvestingPro subscribers have access to 18 additional key insights into MULN’s financial position.
In other recent news, Mullen Automotive reported a significant development in its business. The company saw an increase in electric vehicle sales, generating $5.5 million from the sale of 100 Class 1 and 3 EV cargo vans and trucks. Mullen Automotive also secured an additional $4.4 million in financing through the issuance of senior secured convertible bonds and related warrants.
At the same time, the company issued new convertible bonds and warrants to raise capital, which InvestingPro analysts point out is crucial given Mullen’s financial challenges and the rapid depletion of cash reserves. The company also reached a settlement agreement related to a derivative suit filed against it, agreeing to implement management improvements and pay $500,000 in legal fees.
Mullen Automotive has also made significant progress in battery manufacturing in the United States, investing $12 million in this initiative. Furthermore, the company fulfilled significant orders for Westland Floral and sold its first EV van to Mr. Appliance, marking strategic steps to diversify its clientele. These are the latest achievements of Mullen Automotive.
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