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Mullen reports solid financials, expands EV production

EditorNatashya Angelica
Published 08/06/2024, 08:22 PM
MULN
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BREA, Calif. - Mullen Automotive Inc. (NASDAQ: NASDAQ:MULN), an emerging manufacturer of electric vehicles (EVs), has announced key operational achievements and financial updates that signal robust growth despite economic challenges. The company expects to report total assets of approximately $191.4 million as of June 30, 2024, with a cash position that currently exceeds its market capitalization.

The company has met all federal and state regulatory requirements for its Class 1 and Class 3 commercial EVs and is actively selling these vehicles across the United States. Mullen's B4 Class 4 electric truck, produced by its subsidiary Bollinger Motors, has received EPA certification, marking a significant step as manufacturing is set to begin later this year.

Mullen's CEO and Chairman, David Michery, highlighted the company's strong balance sheet and the recent securing of $250 million in new financing commitments to fuel growth. Of this financing, $50 million has been received, with an additional $50 million available as an investment right and $150 million through an equity line of credit.

The company has expanded its sales and distribution network, adding six dealerships and five new commercial dealer partners in the last quarter. Bollinger Motors has also announced four commercial dealers in the U.S. and has agreements to sell over 200 B4 Class 4 EV trucks. Orders for Mullen's commercial EVs, including the Mullen GO and Class 1 and 3 EV cargo vans and trucks, have been received from southeastern Europe, indicating an expansion in international distribution.

Mullen's production center in Tunica, Mississippi, has manufactured hundreds of Class 1 and Class 3 electric vehicles in 2024, and the company has begun fulfilling orders from its U.S.-based facilities. In addition, the company is advancing its solid-state polymer pack program with expectations to have the packs fully certified for production and sale in the second half of 2025.

This information is based on a press release statement, which also includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. Mullen's plans and achievements reflect its commitment to innovation and operational excellence in the electric vehicle market.

In other recent news, Mullen Automotive has seen a series of significant developments. The company has integrated four of its electric cargo vans into DB Schenker's operations at the Intel (NASDAQ:INTC) technology campus, marking a step towards DB Schenker's carbon neutrality initiative.

Mullen Automotive also secured a $304,000 order for 29 units of the Mullen GO from international distributor GAMA. Bollinger Motors, a subsidiary of Mullen Automotive, announced comprehensive warranty coverage for its upcoming Bollinger B4 Chassis Cab, and Mullen Automotive received an order from the City of Dublin, Ohio, for its Class 3 electric truck, the Mullen THREE.

In addition, Mullen Automotive launched the POWER BOOST program, allowing customers to upgrade their lithium-ion battery packs to solid-state polymer battery packs for their Class 1 EV cargo vans. The company also made its first commercial EV sale in Massachusetts.

Bollinger Motors, meanwhile, appointed James Taylor, a former GM executive, as its new CEO, with Bryan Chambers promoted to President and COO, and Siva Kumar named Chief Strategy Officer and Senior Vice President of Finance.

Mullen Automotive also appointed Alain Van Munster as Vice President of Sales for Europe, Middle East, and Africa, marking the company's expansion into these markets. These are all recent developments in both companies' operations.

InvestingPro Insights

As Mullen Automotive Inc. (NASDAQ: MULN) progresses with its operational achievements, InvestingPro data and tips provide additional context for investors evaluating the company's potential. With a market capitalization of just $19.09 million, Mullen's cash position surpassing its market cap is a noteworthy highlight. This indicates a level of financial stability, as the company holds more cash than debt, an important consideration for investors given the capital-intensive nature of the automotive industry.

Two InvestingPro Tips that stand out for Mullen are its high shareholder yield and the indication that the stock is currently in oversold territory according to the Relative Strength Index (RSI). A high shareholder yield can be a sign that the company is effectively returning value to its investors, which may be attractive to those seeking investment opportunities with potential for returns. The RSI metric suggests that the stock may be undervalued, presenting a possible entry point for investors looking for a rebound opportunity.

Key InvestingPro Data metrics include the company's Price / Book multiple for the last twelve months as of Q2 2024, which stands at a low 0.2. This could suggest that the stock is undervalued relative to the company's book value, aligning with the oversold indication from the RSI metric. Additionally, the significant price decline over the past year, with a 1 Year Price Total Return of -99.29%, reflects the stock's high volatility and the challenges it has faced in the market.

Investors interested in deeper analysis can find more InvestingPro Tips for Mullen, which cover various aspects of the company's financial health, stock performance, and industry positioning. There are additional tips available on the InvestingPro platform for those who wish to explore further.

For more detailed insights and additional tips on Mullen Automotive Inc., investors can visit https://www.investing.com/pro/MULN.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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