Mullen Automotive Stock (MULN) Crashes 26% after Brief Hype Spike

Mullen Automotive (MULN) just gave investors a brutal reminder of how fast sentiment can flip. Less than a day after the EV penny stock doubled on delayed filing news and optimism over a narrowed net loss, shares cratered 26% to close at just $0.25. Anyone who bought the top is now deep in the red—and wondering what happened.

MULN Stock Tanks after Filing Delay Euphoria Fades

On May 16, Mullen announced it would delay its quarterly 10-Q report. What lit the fuse? Mullen’s net loss had narrowed dramatically—from $171.4 million last year to just $53.9 million this quarter. That’s a big improvement, driven by lower R&D spend and warrant revaluation gains.

The stock soared over 100% on the news. But it didn’t stick.

By the next day, the market reality set in. Mullen is still facing major structural issues—from its ongoing receivership over Bollinger Motors to massive dilution risks. And with its market cap still under $5 million, the trading action is extremely thin and speculative. For many, the spike was just a liquidity event.

Markets Pull Back as Speculative Bets Unwind

The broader market also cooled slightly, putting pressure on riskier assets like penny stocks. In Mullen’s case, the pullback looked more like a classic pump-and-dump fade. Volume surged during the initial pop but dropped fast as buyers dried up. The chart shows a sharp selloff within minutes, with very little recovery.

For traders who chased the green candle, it’s a hard lesson.

Is Mullen (MULN) Still a Buy?

That depends on your appetite for risk. Mullen’s balance sheet remains fragile, and the company has yet to file its Q1 financials. TipRanks’ Spark AI gives the stock an “Underperform” due to weak fundamentals and poor technicals. While some retail traders are still betting on a turnaround, analysts remain unconvinced.