Mullen Automotive Soars 93.75% Amid Lawsuits, U.S. Sourcing Push

Mullen Automotive's stock surged by 93.75% in pre-market trading on April 4, 2025, marking a significant rise that has caught the attention of investors and analysts alike.

Mullen Automotive is currently facing multiple class action lawsuits, with several law firms, including Bronstein, Gewirtz and Grossman, LLC and Faruqi & Faruqi, LLP, encouraging shareholders to come forward and lead the legal action. The lawsuits allege that the company and its executives violated federal securities laws by making false and misleading statements, which led to a dramatic decline in the stock price.

The allegations include claims that Mullen's leadership, including CEO David Michery, had no true intention of implementing a reverse stock split despite falsely representing otherwise. Additionally, investors were misled about the legitimacy of business partnerships with companies like Rapid Response Defense Systems and Mullen Advanced Energy Operations, LLC. The capability of their battery technology was also frequently exaggerated, not meeting investor expectations. Information about prior convictions of affiliated individuals, such as Lawrence Hardge, was not disclosed, further complicating the integrity of the company's public statements.

Mullen Automotive has also been in the news for its efforts to boost U.S. parts sourcing for electric vehicles. The company sources 67% of its vehicle components from U.S. suppliers, highlighting its commitment to domestic manufacturing. This move is seen as a strategic effort to enhance its supply chain resilience and support local economies.