Bollinger (BINI) Plunges 15.89% Amid 2284.11% 14-Day Surge as Legal Woes and Cash Flow Pressures Mount

Bollinger (BINI) plunged 15.89% on Friday, marking its 14th consecutive day of declines amid a 2284.11% surge in the 14-day period. The stock hit a fresh 16-month low intraday, shedding 17.29% as mounting legal and operational challenges weigh on investor sentiment.

The company’s rebranding from Mullen Automotive and subsequent merger with Bollinger Motors in July 2025 has been overshadowed by a string of supplier lawsuits. Six active cases in Oakland County Circuit Court, totaling over $5 million in unpaid invoices, highlight severe cash flow constraints. Unresolved claims from Tool House Inc., Wurth Electronics ICS, and Auto Metal Craft Inc. underscore a $24 million accounts payable backlog, raising questions about the firm’s solvency and vendor trust.

Efforts to stabilize finances have included a 1-for-250 reverse stock split in August and aggressive cost-cutting. Operational restructuring—such as closing California facilities and halting third-party manufacturing—reduced quarterly cash burn by 58% to $8.9 million. However, these measures have not stemmed the share price decline, which fell 19.7% in late September amid weak lead generation and stalled commercial traction.

Leadership changes and a pivot to commercial EV logistics have not yet translated into market confidence. Despite CEO David Michery’s claims of a $150 million equity line and $80 million in committed capital, liquidity risks persist. Recent payments to founder Robert Bollinger and ongoing legal settlements further strain resources, with the stock trading near $1.75—a far cry from its peak during the rebranding phase.

Broader industry headwinds compound Bollinger’s struggles. Reduced federal incentives, rising tariffs, and soft demand for electric trucks have dampened prospects. While retail investor sentiment remains mixed, institutional caution is evident, with the stock trading at a steep discount to peers. A three-year moratorium on reverse stock splits signals stability intentions, but tangible revenue growth and liability resolution will be critical to reversing the downward spiral.