Mullen Automotive (MULN) Shares Plunge 25% Amid Reverse Stock Split Plans

Shares of Mullen Automotive Inc MULN tumbled 25.4% to $0.08 on Friday afternoon, extending recent losses following the company's announcement of a 1-for-100 reverse stock split.

What To Know: The electric vehicle manufacturer aims to regain compliance with Nasdaq's $1.00 minimum bid price requirement through the reverse split, which will take effect at 12:01 a.m. ET on June 2.

Approved by shareholders at a May 21 special meeting, the split will consolidate every 100 shares of Mullen’s common stock into a single share. The move will reduce the number of outstanding shares from approximately 80 million to about 800,000. While no fractional shares will be issued, any fractional holdings will be rounded up.

Mullen’s common stock will continue trading under the symbol “MULN” on a split-adjusted basis starting June 2. However, the company cautioned that there is no guarantee the split will bring shares above the $1.00 threshold required for continued Nasdaq listing.

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How To Buy MULN Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Mullen Automotive’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, MULN has a 52-week high of $2,867,995.30 and a 52-week low of $0.075.