BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced an expansion of its U.S. dealer network and the start of production for its commercial EVs. The company has added seven prominent dealers across the nation, including Papé Group, a significant commercial dealer group on the West Coast.
The expansion follows a series of vehicle demonstrations across various industries, leading to new sales opportunities and orders from universities, local governments, small businesses, and large corporations. Internationally, Mullen Automotive has established relationships and received orders from Eastern Europe and the Middle East, including a substantial $210 million order from Volt Mobility.
Additionally, Mullen's subsidiary Bollinger Motors has started production of the Bollinger B4 electric truck in Michigan after completing necessary engineering and testing for compliance regulation. The B4 truck has received sales approval in all U.S. states and qualifies for significant incentives.
On the financial front, Mullen Automotive has transitioned from pre-revenue product development to revenue generation, with three vehicle lines in production showing positive sales margins. The company has secured financing to support sales growth through a $100 million preferred instrument and a $150 million fully available equity line.
Mullen's CEO, David Michery, remains optimistic about the company's trajectory despite challenges associated with its stock price. He stated the current stock price does not reflect the company's value and highlighted the strategic product focus and operational efficiency improvements that have reduced cash burn.
The company's manufacturing facilities in Tunica, Mississippi, and Mishawaka, Indiana, are operational, with the former receiving Foreign Trade Zone status approval, offering benefits such as duty deferment and elimination on exported vehicles.
Mullen Automotive has also received IRS approval for federal EV tax credits on its commercial vehicles, offering eligible customers up to $7,500 per vehicle. The Class 3 EV truck, Mullen THREE, is eligible for a $45,000 cash voucher at the time of purchase through the California Air Resource Board's HVIP approval.
This news is based on a press release statement from Mullen Automotive, Inc. and reflects the company's ongoing efforts to expand its market presence and product offerings in the electric vehicle industry.
In other recent news, Mullen Automotive has reported a series of notable developments. The company has expanded its employee equity incentive program by 11 million shares, demonstrating its commitment to retaining talent in the competitive electric vehicle market. Mullen Automotive has also initiated a 1-for-100 reverse stock split to meet Nasdaq's minimum bid price requirement.
In production news, Mullen Automotive, through its subsidiary Bollinger Motors, has started the production of the Bollinger B4 electric truck. This move marks a significant advancement in the electric commercial vehicle market. The Bollinger B4 Chassis Cab has been priced at $158,758, with customer deliveries expected to begin in October 2024.
In terms of sales, Mullen Automotive has started EV deliveries in the UAE, marking a significant milestone in their $210 million contract with Volt Mobility. The company has also issued over 13 million shares to Esousa Holdings LLC and over 3 million shares to Silverback Capital Corporation.
Mullen Automotive continues to expand its dealer network through partnerships with Affinity Truck Center and TEC Equipment Inc. These strategic moves reflect Mullen Automotive's ongoing efforts to enhance its market presence and meet the growing demand for electric commercial vehicles.
InvestingPro Insights
As Mullen Automotive (NASDAQ: MULN) accelerates its expansion and production of commercial electric vehicles, financial metrics and market performance provide a deeper understanding of the company's current position. According to InvestingPro data, Mullen Automotive's market capitalization stands at a modest $9.31 million. The company's Price / Book ratio as of the last twelve months ending Q3 2024 is 0.27, suggesting the stock is trading at a low multiple relative to the company's book value. This could be an indicator of undervaluation, which might interest value investors.
However, the company's financial health is a concern, with a significant revenue decline of 49.17% over the last twelve months as of Q3 2024. This is compounded by a gross profit margin of -1364.48%, reflecting substantial costs in relation to revenues. Additionally, Mullen Automotive's share price has experienced a sharp decline, with a one-year total return of -99.89% as of the data provided.
InvestingPro Tips highlight several challenges for Mullen Automotive, including a warning that the company may struggle to make interest payments on its debt and a note on the stock's high volatility. Notably, the stock is in oversold territory according to the Relative Strength Index (RSI), which could potentially signal a buying opportunity for contrarian investors. Furthermore, the company's short-term obligations exceed its liquid assets, emphasizing the importance of strategic financial management moving forward.
For those considering an investment in Mullen Automotive, additional insights are available. InvestingPro offers 19 more tips, including an analysis of the company's valuation and cash flow yield, which can be found at https://www.investing.com/pro/MULN. These tips can provide investors with a comprehensive view of the company's financial health and market performance, aiding in making informed investment decisions.
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