Mullen Automotive (MULN) receives Nasdaq determination and now faces stock delisting
The stock of EV startup Mullen Automotive hit an all-time low Wednesday evening following a delisting determination sent by the Nasdaq Stock Market for failure to maintain a minimum bid price of $1. This news comes as the latest blow to a company that has consistently sparring with financial firms and analysts lately and must now fight being delisted altogether.
Mullen Automotive ($MULN) is a Southern California-based EV startup approaching its 10-year anniversary while still working to bring its first passenger EV to market. The startup appeared closest to its goal following a 2020 merger in which it pivoted toward building its own bespoke EV model – the FIVE crossover SUV.
However, we started scratching our heads in the fall of 2022 when Mullen claimed a majority stake in Bollinger Motors’ commercial EV business, vowing to resurrect the latter’s ill-fated B1 and B2 electric trucks into production as well.
This was quickly followed by the acquisition of another commercial EV startup, Electric Last Mile Solutions (ELMs) and all its assets – including its Class 3 truck which recently went into production in Mississippi.
Then there’s last April’s partnership with EVT – a company led by convicted fraudster Lawrence Hardge – yet another interesting decision. Believe it or not, financial firms and stockholders follow these movements and invest their money as such. As a result, Mullen’s stock has had a tough go of it.
The startup implemented a 1-for-25 reverse stock split in May, followed by a 1-for-9 reverse split in August, but still fell below the $1 threshold where it has remained since August 16. Due to this non-compliance, the Nasdaq has determined Mullen’s stock must be delisted, but the company is of course, fighting back.
Mullen requests hearing to avoid stock delisting
In a press release sent out by Mullen Automotive today, the startup acknowledged it has received a letter of non-compliance from the Listing Qualifications Department of The Nasdaq Stock Market after missing its September 5, 2023 deadline to get its stock back above $1.
Mullen followed by stating it immediately filed a request for a hearing before the Nasdaq Listing Qualifications Panel on September 6, seeking an “extension of time and (to) present its plan to regain compliance.”
Due to the filed request, Mullen’s stock will stay listed for now and the Nasdaq Panel now has the power to decide if it will grant the startup an additional 180 days from the original September 5 deadline to regain compliance, but there is no guarantee.
Today’s news represent’s Mullen stock’s last deep inhale before potentially sinking for good. The last month alone has been a whirlwind ride of stock splits, buyback programs, and an open letter from CEO David Michery trying to calm down shareholders while a towering inferno of concern figuratively blazes behind him.
Most recently, Mullen has filed a lawsuit against some major players in stock trading, including TD Ameritrade and Charles Schwab, alleging a scheme in which these firms manipulated share prices unlawfully. Whether that’s true or not is not for us media to determine, but when you point the finger at someone, there’s situations when it’s important to remember that there are still three fingers pointing back to you.
As of market opening Thursday, Mullen’s stock sat at $0.40 per share, down another five cents since market close last night, which remains its lowest value to date.
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The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.
The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.
A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.
McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”
“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.
In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.
Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.
In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.
WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal
Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.
Rivian R1S and R1T upgrade deal offers up to $6,000
Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.
After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.
Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.
With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.
Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:
- Tri with Max battery: $6,000 USD / CAD 8,600
- Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
- Dual with Max battery: $3,000 USD / CAD 4,300
The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.
After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”
Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.
The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.
Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.
Electrek’s Take
Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.
Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.
Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.
Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.
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