2023 has not fared well for Mullen Automotive (NASDAQ:MULN) so far. Shares of the electric vehicle (EV) company are down by more than 20% year-to-date, exasperated by its fourth-quarter earnings report, the resale of up to 2.49 billion shares of MULN stock and a lack of sales and profitability.
During Q4, Mullen reported zero dollars in sales and a net loss before accrued preferred dividends and non-controlling interest of $378.46 million, up from a loss of $156.06 million a year ago. Since inception, accumulated losses have now totaled $1.27 billion while the working capital deficiency has risen to $261.9 million.
On Feb. 16, Michery reported receiving six million shares as part of his 2022 equity incentive plan and 16.69 million shares as part of his 2022 performance stock award agreement. These shares were received at no cost to Michery. This comes as shares of MULN have declined by more than 55% during the past year.
MULN Stock: CEO David Michery Receives 22.6 Million Shares
After receiving the shares, Michery gifted five million shares and transferred one million shares, both to unknown recipients. The recipients of these shares are not required to be disclosed under Securities and Exchange Commission (SEC) guidelines. He also directly sold 14.94 million shares at an average price of 31.64 cents per share. Following the sale, gift and transfers, he still owns 113.67 million shares, cementing him as the largest shareholder of MULN.
Since September, Michery has now received a total of 164.45 million shares, which includes the recently received 22.69 million shares. Most of these shares were awarded for satisfying CEO performance milestones, such as being added to the Russell 2000 index and entering into an agreement with a manufacturer that sets Mullen apart or provides it with a first-mover advantage when compared to its competitors.
Also interesting is Michery’s proclivity to gift or transfer shares after receiving them. In his last Form 4 filing, he received 33.87 million shares and transferred 1.46 million shares to an unknown recipient. A previous Form 4 filing received last November showed he gifted away 5.35 million shares after receiving 28.77 million shares as part of his performance stock award agreement.
These actions do not spell confidence for the future of Mullen. Other large insiders seem to be skeptical as well. Both Esousa and Acuitas Group’s Terran Peizer, who have helped finance the company, reported ownership of zero shares as of Dec. 31.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.