Mullen (MULN) shares opened about 40% up on Friday, April 4 after the EV maker said it was well-insulated from higher tariffs on imported vehicles under President Donald Trump.
Mullen assembles all of its vehicles in the United States.
Plus, 67% of the components used in its namesake vehicles, and 71% used in Bollinger Motors (its subsidiary) are domestically sourced as well, according to the company’s press release.
That said, Mullen stock is currently down more than 99% versus the start of 2025. Since opening higher, the stock has reversed course and is down more than 2% as of this writing.
Mullen’s Financials Do Not Inspire Investment
Mullen’s focus on domestic production is not enough to drive investor interest.
Why? Mullen continues to struggle with improving revenue, while its net income tanked nearly 36% in Q4.
Investors should also note that Mullen is a penny stock that’s currently in breach of Nasdaq’s minimum listing requirements that require a share price above $1. So, a departure from the stock exchange may be on the horizon as well.
Additionally, the automaker has working capital of about $281 million only at the time of writing, indicating it will soon have to raise fresh capital, which typically dilutes existing shareholders.
Mullen Stock Is a High-Risk Investment
Mullen remains unattractive despite its press release today confirming relative immunity to the new tariffs for the sheer reason that it’s a penny stock.
Penny stocks are high-risk investments, as they can be prone to manipulation and tend to have less institutional backing.
Moreover, high volatility and low liquidity are inherent features of penny stocks, which makes them immensely unpredictable and challenging for investors seeking stability and consistent returns.
Finally, Mullen shares are not currently covered by Wall Street analysts as tracked by Barchart. That’s a red flag as well since it indicates a lack of significant interest in the EV stock from the financial community.
