BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an electric vehicle manufacturer, has announced through its subsidiary Bollinger Motors the delivery of three Bollinger B4 chassis cab electric trucks to TEC Equipment locations in Lacey, Washington, Fontana, California, and Oakland, California. The transaction, valued at approximately $500,000, has been completed with electronic payment, allowing for immediate revenue recognition within Mullen's current fiscal quarter ending December 2024.
The Bollinger B4 is a Class 4 commercial truck, designed with input from fleets and upfitters, featuring a unique chassis that safeguards its 158-kilowatt-hour battery pack. This design aims to deliver exceptional capability and safety in the commercial market. Each vehicle qualifies for federal clean vehicle tax credits of $40,000 under the Inflation Reduction Act, with additional state incentives potentially increasing total savings to over $100,000.
TEC Equipment, a reputable full-service truck and trailer dealership founded in 1976, has expressed enthusiasm for the partnership, highlighting the Bollinger B4's suitability for commercial fleet needs. The delivery marks a significant step for Bollinger Motors in establishing its presence on the West Coast.
In recent months, Bollinger Motors has achieved several milestones, including its production launch, regulatory certifications, and expanding its dealership and service network. The company, majority-owned by Mullen since September 2022, is headquartered in Oak Park, Michigan, and specializes in all-electric commercial chassis cab trucks.
Mullen Automotive, based in Southern California, operates vehicle plants in Mississippi and Indiana and has recently commenced commercial vehicle production. The company boasts a growing network of commercial dealers and has secured various certifications and approvals for its electric vehicles, positioning itself as a player in the commercial EV market.
This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected in the forward-looking statements due to various factors.
In other recent news, Mullen Automotive has received a significant boost in its electric vehicle production. Bollinger Motors, a majority-owned subsidiary of Mullen, secured $10 million in debt financing from its founder, Robert Bollinger, to expedite the production of the Bollinger B4, an all-electric Class 4 truck. This comes as the company recently initiated full-scale production of the B4 model. In other financial developments, Mullen Automotive has settled about $4.5 million in secured promissory notes through the issuance of 340,000 shares of common stock.
The company has also expanded its commercial dealer network, adding Papé Kenworth to its roster. This move is expected to enhance Mullen's sales and service coverage across key U.S. markets. On the financial front, Mullen issued convertible notes and warrants, raising approximately $12.5 million. Additionally, it secured significant orders from Papé Kenworth and Volt Mobility, totaling $3.2 million and $210 million respectively.
These developments mark Mullen Automotive's successful transition from pre-revenue product development to revenue generation. The company has also established Mullen Credit Corporation, a subsidiary aimed at supporting its dealership network. This aligns with Mullen's strategy to accommodate its rapid business growth. These are the recent developments in Mullen Automotive's operations.
InvestingPro Insights
While Mullen Automotive's recent delivery of Bollinger B4 chassis cab electric trucks marks a positive step in its commercial EV strategy, InvestingPro data reveals some challenging financial metrics for the company. As of the last twelve months ending Q3 2024, Mullen's revenue stood at a modest $0.16 million, with a concerning revenue growth decline of 49.17% over the same period.
InvestingPro Tips highlight that Mullen is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors could potentially impact the company's ability to scale its operations and meet future production targets, despite the recent $500,000 transaction.
The company's market capitalization stands at just $4.14 million, reflecting investor skepticism about its prospects. This is further underscored by the stock's performance, with InvestingPro data showing a staggering 99.91% price decline over the past year.
It's worth noting that Mullen's Price to Book ratio is 0.12, which an InvestingPro Tip identifies as "trading at a low Price / Book multiple." This could indicate that the stock is undervalued, but it may also reflect concerns about the company's future prospects.
Investors considering Mullen should be aware that InvestingPro offers 17 additional tips for MULN, providing a more comprehensive analysis of the company's financial health and market position. These insights could be crucial for understanding the risks and potential opportunities associated with Mullen Automotive as it navigates the competitive electric vehicle market.
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