EV Stock Alert: Mullen Automotive Faces Nasdaq Delisting Risk as Major Institutions Bail Out

Mullen Automotive (NASDAQ: MULN) just got hit with a compliance notice from Nasdaq. The company failed to file its Annual Report (Form 10-K) for fiscal year ending Sept 30, and now has 60 days to either submit the report or a compliance plan—or face delisting.

The Timeline:

• Notice received: Jan 22, 2025
• Deadline: Within 60 days or submit compliance plan
• Expected filing date: Jan 31, 2025

Here’s Where It Gets Worse: Institutional Exodus

The timing is brutal. While Mullen tries to get compliant, major hedge funds are heading for the exits:

• Vanguard Group dumped 366,133 shares (-100%) — ~$1.15M
• BlackRock bailed out 82,228 shares (-100%) — ~$259K
• Geode Capital ditched 80,089 shares (-100%) — ~$252K
• Charles Schwab, Northern Trust, State Street also went full exit

Out of 42 institutional moves tracked, only 3 added shares while 36 reduced positions. That’s the classic “we’re out” signal.

The Silver Linings (Probably Not Enough)

• Stock won’t be delisted immediately; trading continues
• Company has 60-day grace period + potential 180-day extension if compliance plan accepted
• Mullen has started commercial EV production in Tunica, MS
• Received IRS approval for $7,500 EV tax credits per vehicle
• Expanded dealer network to 7 dealers (Papé Kenworth, Pritchard EV, etc.)
• California HVIP approved Mullen THREE truck with up to $45K voucher per sale

The Real Problem: Late financial reporting = red flag on governance + transparency. Investors hate uncertainty. When big funds see compliance issues + delayed filings, they assume the worst and get out first. Mullen needs to nail that Jan 31 filing deadline, or watch more institutional money leave.

Bottom Line: Mullen has runway to survive this, but the institutional vote of no-confidence is already in. If the company misses Jan 31 or the compliance plan gets rejected, delisting becomes real. EV sector is hot, but execution matters. Watch that filing date closely.