BREA, Calif. - Mullen Automotive Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, announced today that Robert Bollinger, the founder of Bollinger Motors, has provided the company with $10 million in non-dilutive debt financing. This funding is aimed at accelerating the production and distribution of the Bollinger B4, an all-electric Class 4 commercial truck.
The investment is expected to boost Bollinger Motors' capabilities as the company has recently commenced full-scale production of the B4 model. The trucks are currently being assembled at Roush Industries in Livonia, Michigan, featuring over 70% of components sourced from the United States.
David Michery, CEO and chairman of Mullen Automotive, highlighted the significance of Robert Bollinger's ongoing support, which he believes is crucial for enhancing the brand's growth and presence in the EV market.
Bollinger Motors, now a majority-owned subsidiary of Mullen Automotive, began the production of the B4 truck in September 2022. The company has also achieved a significant milestone by shipping these trucks nationwide to customers and dealers.
Mullen Automotive has been actively expanding its footprint in the commercial EV sector. With facilities in Tunica, Mississippi, and Mishawaka, Indiana, the company started commercial vehicle production at its Tunica plant in August 2023. Mullen's commercial vehicles, including the Mullen ONE and Mullen THREE, have received certification from the California Air Resource Board (CARB) and Environmental Protection Agency (EPA), making them available for sale in the U.S.
In addition, the Mullen THREE has been approved for the CARB's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which offers a cash voucher of up to $45,000 at the time of purchase.
The company's commercial dealer network has expanded to seven dealers, including the recent addition of Papé Kenworth, providing comprehensive sales and service coverage across various U.S. regions. Furthermore, Mullen Automotive has received Foreign Trade Zone status for its Tunica manufacturing center, offering benefits such as duty deferment and elimination on exported vehicles.
Details regarding the financial arrangement will be disclosed in a forthcoming Current Report on Form 8-K to be filed with the Securities and Exchange Commission. This announcement is based on a press release statement provided by Mullen Automotive Inc.
In other recent news, Mullen Automotive has made noteworthy strides in its financial and operational performance. The company has settled approximately $4.5 million in secured promissory notes through the issuance of 340,000 shares of its common stock, effectively managing its financial liabilities. Mullen Automotive also reported a significant 6791% surge in quarterly revenue, totaling around $4.5 million.
The company's subsidiary, Bollinger Motors, delivered its first Bollinger B4 electric trucks to Nacarato Truck Centers, resulting in an $800,000 revenue boost. Mullen Automotive also launched Mullen Credit Corporation, a subsidiary geared to support its dealership network.
In other developments, Mullen Automotive reported projected GAAP revenue of $75 million over the next six months and reduced monthly spending by $5.5 million. The company has also regained compliance with Nasdaq's minimum bid price requirement.
In terms of financial developments, Mullen issued convertible notes and warrants, raising approximately $12.5 million. The company also secured significant orders from Papé Kenworth and Volt Mobility, totaling $3.2 million and $210 million respectively. These are among the recent developments in Mullen Automotive's operations.
InvestingPro Insights
As Mullen Automotive (NASDAQ: MULN) secures $10 million in non-dilutive debt financing from Robert Bollinger, it's crucial to examine the company's financial health and market performance. According to InvestingPro data, Mullen's market capitalization stands at a modest $5.02 million, reflecting the challenges faced by this emerging EV manufacturer.
InvestingPro Tips highlight that Mullen is "quickly burning through cash" and "may have trouble making interest payments on debt." These insights are particularly relevant given the recent debt financing, suggesting that while the $10 million injection is beneficial, it may be necessary for the company's ongoing operations and expansion plans.
The company's financial metrics paint a concerning picture. With a revenue of just $0.16 million in the last twelve months as of Q3 2024 and a staggering revenue decline of 49.17% over the same period, Mullen faces significant hurdles in scaling its operations. The gross profit margin of -1364.48% further underscores the company's struggle to achieve profitability in its current phase.
Despite these challenges, Mullen's strategic moves, such as the production of the Bollinger B4 and expansion of its commercial dealer network, demonstrate its efforts to gain traction in the competitive EV market. However, investors should note that the stock is "trading at a low Price / Book multiple" of 0.14, which could indicate undervaluation or reflect the market's skepticism about the company's future prospects.
For those interested in a deeper analysis, InvestingPro offers 17 additional tips for Mullen Automotive, providing a comprehensive view of the company's position in the EV industry.
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