BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced a $150 million financing commitment to bolster its operations and sales efforts. The company has received a $100 million investment from a family office and sold an additional $50 million in senior secured convertible notes to various investors. The initial sale of $12.5 million in notes was completed today.
This capital injection is aimed at sustaining the company's operations and supporting the production of Bollinger Motors' B4 vehicle for the next 13 months. Mullen Automotive has recently made significant strides, including obtaining California Air Resource Board (CARB) HVIP approval for the Mullen THREE, a Class 3 EV truck, which allows for a cash voucher of up to $45,000 at purchase.
Furthermore, Mullen has expanded its commercial dealer network with the addition of Pritchard EV and National Auto Fleet Group, enhancing its presence in key U.S. markets. The company has also achieved Foreign Trade Zone Status for its Tunica, Mississippi, manufacturing center, providing benefits such as duty deferment and elimination on exported vehicles.
Mullen began commercial vehicle production in Tunica in August 2023 and received IRS approval for federal EV tax credits on its commercial vehicles in September 2023. As of January 2024, Mullen's Class 1 EV cargo van and Class 3 EV cab chassis truck are both CARB and EPA certified and available for sale in the U.S.
The company operates two U.S.-based vehicle plants, one in Tunica, Mississippi, with 120,000 square feet, and another in Mishawaka, Indiana, with 650,000 square feet. The recent developments and financial backing aim to strengthen Mullen's position in the competitive EV market.
The information in this article is based on a press release statement from Mullen Automotive, Inc.
InvestingPro Insights
In light of Mullen Automotive's recent financial developments, analysis from InvestingPro provides a nuanced perspective on the company's market position. Despite the positive news of capital infusion, Mullen Automotive is grappling with significant challenges. The company's aggressive share buyback strategy, as noted in one of the InvestingPro Tips, indicates a management confident in the company's value, potentially aiming to signal strength to the market or to optimize capital structure.
On the financial metrics side, Mullen Automotive's market capitalization stands at a modest $37.87 million, reflective of its status as a niche player in the electric vehicle industry. The Price / Book ratio, as of the last twelve months leading up to Q1 2024, is remarkably low at 0.18, which could be interpreted as the market pricing the company's assets at a significant discount.
This metric, alongside the fact that Mullen holds more cash than debt on its balance sheet, may be of interest to value-oriented investors. Still, the company's gross profit margin presents a stark contrast, with a negative 458.51%, indicating that Mullen is currently spending more to produce its goods than it earns from their sale.
For investors seeking a deeper dive into Mullen Automotive's financial health and market prospects, there are additional InvestingPro Tips available. These tips provide insights into aspects such as the company's cash burn rate, stock volatility, and revenue valuation multiples. Interested readers can find a total of 17 additional tips on InvestingPro, which may serve as a valuable resource for making informed investment decisions. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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