BREA, Calif. - Mullen Automotive, Inc. (NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer with a current market capitalization of $10.86 million, has reported notable growth in commercial vehicle sales and a significant reduction in monthly expenses. The company sold a total of 100 Class 1 and Class 3 EV cargo vans and trucks since September 30, 2024, generating sales of $5.5 million. According to InvestingPro analysis, the stock appears undervalued despite trading near its 52-week low of $1.21.
The company's efforts to streamline operations have resulted in a decrease in its monthly cash burn rate, from $16.8 million in August 2024 to $11.8 million in September, and further down to $5.3 million in October and November 2024. InvestingPro data reveals challenging financial metrics, including an EBITDA of -$267.71 million and a current ratio of 0.53, indicating potential liquidity concerns. InvestingPro subscribers have access to 18 additional key insights about Mullen's financial health.
Mullen's recent sales success has been attributed to the growing demand for sustainable commercial transportation solutions. The company has been actively engaging with government agencies, universities, and large fleet operators to promote the adoption of EVs across the United States and beyond.
The lineup includes the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck, both of which comply with U.S. Federal Motor Vehicle Safety Standards, as well as the Environmental Protection Agency and the California Air Resources Board (CARB) certifications. These certifications are important indicators of the vehicles' adherence to strict emissions standards.
Additionally, both vehicles are eligible for various incentives, including federal tax incentives, a $15,000 incentive through the State of Massachusetts MOR-EV program, and up to a $45,000 cash rebate voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program (HVIP).
Mullen Automotive operates two vehicle plants in the United States and has expanded its commercial dealer network to seven dealers, enhancing sales and service coverage in key markets.
This sales update and the company's cost reduction efforts reflect Mullen Automotive's ongoing commitment to establishing a strong presence in the commercial EV market. With the next earnings report scheduled for January 17, 2025, investors will be closely monitoring the company's progress in expanding its $0.16 million trailing twelve-month revenue. The information is based on a press release statement from the company and InvestingPro financial data.
In other recent news, Mullen Automotive has secured significant developments in its operations. The company has secured additional financing of $4.4 million through the issuance of senior secured convertible notes and related warrants. This comes at a crucial time for Mullen Automotive, as the company has been rapidly burning through cash. The company has also received substantial orders for its electric commercial vehicles, with Associated Coffee ordering 10 Class 3 EV cab chassis trucks and TEC Equipment placing a repeat order for seven Bollinger B4 all-electric trucks.
Mullen Automotive has also made strides in settling its outstanding liabilities totaling over $20 million by issuing common stock to creditors. This agreement was approved by a Florida court and is designed to strengthen the company's financial position. In addition, Mullen Automotive's subsidiary, Bollinger Motors, has expanded its national dealer network with the addition of Bergey’s Truck Centers and Broadway Ford (NYSE:F) Truck Center, extending its reach into the mid-Atlantic and Midwest regions respectively.
The company has also announced strategic partnerships with Emerald Transportation Solutions and the National Auto Fleet Group. The partnership with Emerald aims to develop a refrigerated upfit for the Mullen THREE, a Class 3 all-electric truck. The collaboration with the National Auto Fleet Group is expected to distribute Bollinger B4 electric commercial trucks to government agencies. These are the recent developments from Mullen Automotive.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.