Mullen Automotive Inc. (NASDAQ:MULN) shares are trading lower on Tuesday after the company reported its fiscal second-quarter results.

What To Know: Mullen reported second-quarter revenue of $4.95 million, its strongest revenue results to date. The company also reduced its quarterly net loss to approximately $47.1 million from a loss of $132.4 million in the year-ago period.

「This growth underscores the effectiveness of our strategic initiatives and increasing demand for our vehicles despite challenging market conditions,」 said David Michery, chairman and CEO of Mullen Automotive.

The company emphasized lower cash burn, with operating and investing cash use down 56.6% to $52.4 million compared to the same period in 2024. However, Mullen ended the quarter with just $2.3 million in cash and restricted cash, and negative $156.1 million in working capital, which may be weighing on shares on Tuesday.

Another potential source of concern is the recent court-appointed receivership of Bollinger Motors, a majority-owned subsidiary of Mullen Automotive. Although the company stated it does not expect the Bollinger situation to materially impact its liquidity or capital resources, the development adds uncertainty to its broader business outlook.

The pullback in shares comes after Mullen Automotive stock soared on Monday in a move that appeared to be driven by short covering. The stock is still heavily shorted, according to Benzinga Pro. The company also had a very small market cap of approximately $180,000 as of Monday's close, which is likely adding to the extreme volatility in shares.

Mullen shares traded on abnormally high volume on Monday. More than 45 million shares had traded hands at last check on Tuesday, versus the company's average trading volume of about 5 million, according to Benzinga Pro data.

Price Action: Mullen Automotive shares were down 26.8%, trading around 25 cents at the time of publication, according to Benzinga Pro.

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