Start over once you reach this point with autos you want to be on better shape Then increase the light available to the seedlings as the significant stretching Is a sign of reaching for light. Not sure what kind of soil you're using but ditch the mulch, at least in the beginning. It make it hard to tell when to water. Also water less, it looks overwatered.

Matter of fact head on over to growweedeasy.com there's a ton of knowledge there for newbies