It’s been another tough day for shareholders in Mullen Automotive (NASDAQ:MULN). MULN stock dipped another 10% today to less than 50 cents per share as investors priced in commentary from the company via an open letter to shareholders.

This open letter was penned by CEO David Michery, and provided a number of company updates. These updates highlight the company’s progress on its commercial orders, the IRS approval for tax credits for its vehicles, its Romeo Power transaction, production updates for the Mullen 3, and other general updates. We’ll get to some of those shortly.

However, it’s clear investors are focusing in on the first portion of the open letter, addressing concerns around the potential delisting of MULN stock from the Nasdaq exchange. The company notes:

“Mullen previously announced that it had requested a hearing before a Nasdaq Hearings Panel (the ‘Panel’). The hearing has been granted, and the hearing request stays any suspension or delisting action pending the hearing and the expiration of any additional extension period granted by the Panel following the hearing. The Company has engaged the services of Donohoe Advisory Associates LLC (‘Donohoe Advisory’) to represent its interests in this matter and to articulate its case to the Panel as the Company works toward regaining compliance with the Nasdaq bid price requirement.”

Obviously, these sorts of delisting risks aren’t great for shareholders considering speculating on beaten-down penny stocks. That said, let’s dive into a few key takeaways from this letter investors should take note of.

MULN Stock Dips on Release of Open Letter to Shareholders

• The company’s CEO noted that Mullen “has achieved significant milestones and continues to deliver on our commitments.” Michery says, “I remain optimistic and committed that Mullen is on the right path to achieving all business objectives, which will benefit our customers, shareholders, and employees.”
• Delisting risks were listed, as well as the company’s plan to mitigate these risk. However, investors appear to be focusing most intently on the risks in this letter.
• Michery noted commercial vehicle orders from British Airways, New York Power Authority, NRTC Automation Group and Randy Marion Automotive Group. However, he did not indicate the overall size and scale of these orders in their entirety.
• Production updates for the Mullen Class 3 outlined some key milestones achieved in August. These include the start of production at the company’s Mississippi plant, its first vehicles rolling off this line, and the company’s EV launch event.
• Interestingly, the CEO also decided to highlight its stock buyback program (a $25 million program authorized through the end of the year).

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Chris MacDonald did not have (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.