The news of Mullen Automotive applying for a DOE loan indicates a strategic move towards expanding its battery production capabilities, which is a positive step for the company's growth in the EV sector. However, the immediate market reaction to the news has been negative, with a 3.07% drop in share price. This could be due to investor concerns about the company's current financial position or the perceived risks associated with the loan application process. The short-term impact is negative, but the long-term outlook could improve if the loan is granted and the expansion plans are successful.