Mullen Automotive: Unveiling the Truth Behind EV Promises

Court: C.D. California

Case: 2:22-cv-03026

Lofty Promises and Market Debut

Mullen Automotive BINI went public on Nasdaq in November 2021 through a merger with Net Element. The company promised luxury vehicles like the Dragonfly K50 supercar (via Qiantu Motors) and the MX-05 SUV, while touting advanced, non-flammable solid-state batteries. Early announcements fueled excitement, pushing the stock to $13 soon after the IPO.

But by early 2022, delays, missed commercialization goals, and questionable claims triggered a collapse in investor confidence.

Hype vs. Reality

Despite press releases about battery breakthroughs and production progress, Mullen struggled to deliver. Partnerships faltered—Qiantu canceled its deal after Mullen defaulted on payments—yet the company continued taking reservations. By February 2022, its stock had lost over 90% of its value.

Investor Lawsuit and Settlement

In June 2022, shareholders sued, claiming Mullen misled them about production timelines, battery capabilities, and partnerships. The lawsuit included undisclosed financial struggles and overstated technology claims.

After 2 years of litigation, in August 2024, Mullen agreed to a $7.25 million settlement with investors, allowing affected shareholders to claim compensation for losses. They're still accepting late claims for this agreement.

The Struggle to Survive

Mullen’s financials reveal a company burning cash and failing to scale. In 2023, it posted nearly $1 billion in losses on just $400,000 in revenue, while diluting investors by issuing new shares to raise capital. Its Mississippi plant remained largely inactive, and no meaningful EV production materialized.

For investors, Mullen’s story is a stark reminder of the risks of betting on unproven companies riding hype cycles in fast-growing industries like EVs.