BREA, Calif. - Mullen Automotive Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced a new partnership with GAMA, a distributor based in southeastern Europe, to offer its full lineup of commercial EVs in the Balkans Region. This move marks the company's continued expansion into European markets.
GAMA, which has a history of distributing electric vehicles in the region, will represent Mullen's complete range of commercial electric vehicles, including urban delivery vehicles, vans, and trucks. The distributor has successfully delivered over 300 vehicles in the past year and is known for securing public tenders for local governments. GAMA's network boasts eight sub-dealers throughout the Balkans and is in the process of establishing a new facility in Belgrade.
The initial order from GAMA includes 53 commercial EVs, signifying a significant step for Mullen in the Balkans Region. This partnership aligns with Mullen's strategic efforts to extend its global footprint, particularly in Europe.
Mullen Automotive has two vehicle plants in the United States, one in Tunica, Mississippi, and another in Mishawaka, Indiana. The company began its commercial vehicle production in Tunica in August 2023, and its commercial vehicles have been approved for federal EV tax credits by the IRS, providing up to $7,500 per vehicle for eligible customers.
Both Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, have received certification from the California Air Resource Board and the Environmental Protection Agency and are available for sale in the U.S. as of January 2024.
David Michery, CEO and chairman of Mullen Automotive, expressed enthusiasm for the partnership, stating that securing GAMA as a distributor is a pivotal development for the company's presence in southeastern Europe.
The information in this article is based on a press release statement.
InvestingPro Insights
As Mullen Automotive Inc. (NASDAQ: MULN) ventures into the European market through its partnership with GAMA, the company's financial health and stock performance provide critical insights for investors. According to InvestingPro data, Mullen Automotive holds a market capitalization of $45.76 million, reflecting its position as a niche player in the electric vehicle industry. Despite the company's aggressive expansion efforts, Mullen is not profitable over the last twelve months, with a reported gross profit margin of -254.49% as of Q2 2024, indicating significant challenges in maintaining cost-effective operations.
InvestingPro Tips reveal that Mullen's management has been actively repurchasing shares, which can be an indicator of confidence in the company's future prospects. However, the company also faces a rapid cash burn rate, which is essential for investors to monitor given the capital-intensive nature of the automotive industry. Moreover, the stock has experienced considerable volatility, with a one-week price total return of -17.49% and a six-month price total return of -77.09%, as of mid-2024. This could signal uncertainty among investors regarding the company's short-term performance.
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