Mullen Automotive Drops 0.9% Amid Lawsuit Settlement

On July 17, 2025, Mullen Automotive's stock experienced a 0.9% drop in pre-market trading.

Mullen Automotive has recently settled a lawsuit with shareholders, agreeing to pay $7.25 million in compensation. This settlement follows a period of legal challenges faced by the company, which has been under scrutiny for its financial practices and operational strategies.

In a strategic move, Mullen Automotive has increased its investment in Bollinger Motors, becoming a 95% owner. This acquisition is part of the company's broader strategy to expand its presence in the electric vehicle (EV) market, particularly in the commercial vehicle segment.

Mullen Automotive has made significant strides in its commercial vehicle production. In August 2023, the company began producing commercial vehicles in Tunica, Mississippi. This production facility is crucial for Mullen's plans to scale its operations and meet the growing demand for electric commercial vehicles.

In September 2023, Mullen Automotive received approval from the IRS for federal EV tax credits on its vehicles. This approval is a significant milestone for the company, as it allows Mullen to offer more competitive pricing to its customers and attract more buyers to its electric vehicle lineup.