BREA, Calif. - Mullen Automotive Inc. (NASDAQ:MULN), a manufacturer of electric vehicles (EVs), announced Wednesday that it has regained compliance with Nasdaq's minimum bid price requirement. The company confirmed receipt of a formal notice from The Nasdaq Stock Market LLC, stating its full compliance with all continued listing requirements, allowing it to remain listed on The Nasdaq Capital Market.
The compliance notice, received on October 16, 2024, has led to the cancellation of a previously scheduled Nasdaq Panel hearing, effectively closing the matter. Mullen expects to be removed from Nasdaq's list of noncompliant companies within four business days from the notice.
Mullen Automotive has been actively expanding its commercial EV production and dealership network. The company's facilities in Tunica, Mississippi, and Mishawaka, Indiana, have been instrumental in its growth. Recently, Mullen received IRS approval for federal EV tax credits, and its vehicles, the Mullen ONE and Mullen THREE, have been certified by the California Air Resource Board (CARB) and the Environmental Protection Agency (EPA).
The company also announced the expansion of its commercial dealer network with the addition of Papé Kenworth and others, enhancing sales and service coverage across various U.S. regions. Additionally, Mullen's Tunica manufacturing center has been granted Foreign Trade Zone status, providing benefits such as duty deferment and elimination on exported vehicles.
This announcement is based on a press release statement from Mullen Automotive Inc. and contains forward-looking statements that involve risks and uncertainties. Mullen has clarified that it may update forward-looking statements as required by law, but it has no obligation to do so.
In other recent news, Mullen Automotive has announced the establishment of Mullen Credit Corporation, a subsidiary aimed at supporting its dealership network. The company has also made significant strides in its financial position, projecting $75 million in GAAP revenue over the next six months and reducing monthly spending by $5.5 million. Mullen Automotive reported a substantial 6791% surge in quarterly revenue, totaling approximately $4.5 million for the quarter ended September 2024.
These developments are part of Mullen's strategy to accommodate its rapid business growth and to transition from pre-revenue product development to revenue generation. The company recently issued convertible notes and warrants, raising approximately $12.5 million. It also secured orders from Papé Kenworth and Volt Mobility, totaling $3.2 million and $210 million respectively.
Mullen Automotive's commercial EV lineup, including the Mullen ONE and Mullen THREE, has received certifications from the EPA and California Air Resources Board. The company's dealer network has expanded with the addition of Papé Kenworth and others, providing sales and service across key U.S. markets. These are recent developments in Mullen Automotive's operations.
InvestingPro Insights
While Mullen Automotive (NASDAQ:MULN) has regained compliance with Nasdaq's minimum bid price requirement, InvestingPro data reveals some challenging financial metrics for the company. As of the last twelve months ending Q3 2024, Mullen's revenue stood at a modest $0.16 million, with a concerning revenue growth decline of -49.17%. This aligns with an InvestingPro Tip indicating that the company is "quickly burning through cash."
The company's financial health appears precarious, with an operating income margin of -185,781.29% for the same period. This extreme negative margin underscores the InvestingPro Tip that Mullen "may have trouble making interest payments on debt." Additionally, the tip that "short term obligations exceed liquid assets" further highlights the company's financial strain.
Despite these challenges, Mullen's stock is trading at a low Price / Book multiple of 0.12, which could be of interest to value investors. However, this should be weighed against the InvestingPro Tip that the stock "has fared poorly over the last month," with a one-month price total return of -78.18% as of the data's cutoff date.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Mullen Automotive, providing a deeper insight into the company's financial situation and market performance.
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