The American electric car brand Mullen Automotive has saved itself from bankruptcy once again. But the threat of closure still lurks.
Mullen Automotive, a smaller maker of electric cars, has once again avoided bankruptcy and a potential delisting from the Nasdaq stock exchange.
The threat of delisting is due to the company not being able to meet the requirements for a minimum price of 1 dollar per share. stock. Something that even Polestar has had to contend with as recently as this year.
Despite several warnings and several attempts to regain control, Mullen continues to struggle to stay relevant on the stock market.
The first warning of a potential delisting was received by Mullen in September 2022, after the share price had been below the minimum limit for 30 consecutive trading days.
The deadline to meet the requirements was originally set for March 2023, but Nasdaq later extended it to September 2023.
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Although Mullen briefly managed to creep above $1 per share, the share price again fell below the limit earlier this year. To meet Nasdaq's demands, the company recently conducted a stock increase to raise new capital.
This unloading meant that a planned hearing with the Nasdaq panel in November 2023 was canceled and that Mullen can continue operations without fear of immediate delisting.
Still, there remains much uncertainty about the company's future, as Mullen has yet to begin production of any of its promised choir robes, although several prototypes have been presented to the public.
Most recently, Mullen presented their Five RS model, an electric crossover with impressive specifications. The car was presented at the Consumer Electronics Show in Las Vegas in January and has two electric motors that together deliver 1,000 hp and a torque of 1,151 Nm.
The Five RS can accelerate from 0 to 100 km/h in under two seconds and has a top speed of over 322 km/h.
Despite these promising numbers and a plan to begin production of the Five RS in late 2025, Mullen is far from proving they can deliver as promised.
Like many other electric car startups, the challenge is not to promise, but to deliver. Several of the car brands have already broken their necks, including Fisker Inc. with Danish Henrik Fisker at the helm.
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