Mullen Automotive Faces Severe Losses and Volatility Amid Micro-Cap Struggles and Restructuring Efforts

Technical Analysis

Mullen Automotive, Inc. (MULN) closed at $0.10 on July 17, 2025, down 7.72%. The stock is trading at its 52-week low of $0.10 with no established support levels, and resistance at $0.1095. The Relative Strength Index (RSI) at 2 indicates extreme oversold conditions, suggesting possible short-term rebound potential; however, this is tempered by the high Average True Range (ATR) of 1,188.51, reflecting extreme volatility relative to the stock price. The 50-day and 200-day moving averages recorded at 10.17 and 525,453.10 respectively appear anomalous and likely data errors, so those indicators cannot be relied upon. The MACD at -1.93 confirms persistent bearish momentum over the past three months. Daily volume of 66.51 million far exceeds the average volume of 15.47 million, indicating heavy sell pressure and liquidity.

For the next trading day (July 18, 2025), the extremely low price and oversold RSI suggest a potential technical bounce; however, the absence of solid support and continued negative momentum likely limit gains. Over the upcoming week, price action is expected to remain pressured below resistance at $0.11, barring positive fundamental developments.

Fundamental Analysis

Mullen Automotive’s trailing twelve months (TTM) earnings per share (EPS) are deeply negative at -43,028.52, with no price-to-earnings multiple available due to losses. The market capitalization stands at approximately $206,000, indicating a micro-cap status and extremely limited market valuation. The company is in the early and capital-intensive phase of the electric vehicle sector, undergoing operational restructuring and rebranding as Bollinger Innovations, Inc., with a NASDAQ symbol change expected around August 15, 2025.

Recent announcements highlight the consolidation of Mullen and Bollinger Motors’ operations, including workforce reductions of 155 jobs and $35 million in annual cost savings. The company expects significant sales orders in the current fiscal quarter, which may mark progress toward revenue generation. Additionally, state-level commercial EV incentives projected in August could catalyze future product adoption, particularly the Bollinger B4 all-electric truck.

Despite strategic moves and potential demand stimuli, the company’s financials remain unsustainable, with ongoing heavy losses and minimal market cap suggesting high risk. The intrinsic value is difficult to determine given lack of profitability, but the substantial negative EPS and absence of cash flow visibility place the current valuation near its speculative floor.

Intrinsic Value and Long-Term Investment Potential

Intrinsic value appears substantially impaired by operational losses and failure to generate meaningful revenue as of mid-2025. The company is in a transformation stage that may unlock value if it successfully captures commercial EV market share and converts incentives into sales. Long-term potential warrants monitoring if operational efficiencies and sales growth materialize, but the near term remains precarious given current liquidity and valuation metrics.

Without clear signs of path to profitability and stable cash flows, the intrinsic value remains below the current market capitalization and the stock is exposed to significant downside risk. Industry tailwinds in electric vehicles provide a backdrop for possible appreciation, but substantial execution risk persists.

Overall Evaluation

Mullen Automotive exhibits severely negative fundamentals, extreme oversold technical conditions, and heavy speculative risk. The stock’s micro-cap size, negative EPS, lack of support levels, and bearish momentum dominate despite corporate restructuring efforts and upcoming sales catalysts. The consensus market stance is aligned with a 'Sell' consensus from analysts.

Based on the available data, the stock is a 'Sell' category candidate. The risks of capital erosion outweigh the speculative upside from restructuring and potential state incentives. Technical oversold signals may trigger transient price spikes, but these are unlikely to reverse the dominant downtrend or address fundamental weaknesses in the near term.