Mullen Automotive Soars 7.62% on Legal Victory

Mullen Automotive's stock price surged 7.62% in pre-market trading on April 1, 2025, marking a significant rise for the electric vehicle manufacturer.

Mullen Automotive recently secured a pivotal legal victory in its ongoing battle against alleged stock manipulation. A federal judge denied a motion to dismiss the company's lawsuit against several financial institutions, including IMC Financial Markets and Clear Street Markets LLC. The lawsuit accuses these defendants of using high-frequency algorithmic trading tactics, such as "Baiting Orders," to manipulate Mullen's stock price between November 2021 and November 2023. The court's decision to proceed with the case indicates that there is sufficient evidence to support Mullen's claims of market manipulation, which could have artificially depressed the company's stock price and harmed its shareholders.

This legal victory is a significant milestone for Mullen Automotive, as it demonstrates the company's commitment to protecting its shareholders and ensuring fair market practices. The case will now move to the discovery phase, where both sides will gather and exchange evidence. This development could have a positive impact on investor confidence in Mullen Automotive, as it shows the company's willingness to take legal action against those who may be attempting to manipulate its stock price.

In addition to its legal victories, Mullen Automotive has been making strides in its commercial electric vehicle (EV) production. The company has two vehicle plants in the United States, located in Tunica, Mississippi, and Mishawaka, Indiana. In August 2023, Mullen began commercial vehicle production in Tunica, and in September 2023, the company received IRS approval for federal EV tax credits on its commercial vehicles. This approval offers eligible customers up to $7,500 per vehicle, making Mullen's EVs more affordable and attractive to potential buyers.

Mullen Automotive has also expanded its commercial dealer network to seven dealers, providing sales and service coverage in key markets across the United States. The company's recent expansion and legal victories position it well for future growth and success in the competitive EV market. Investors will be watching closely to see how these developments impact Mullen Automotive's stock price and overall performance in the coming months.