Mullen Automotive (NASDAQ: MULN) has announced a projected $75 million in GAAP revenue over the next six months alongside substantial cost-cutting measures, marking a significant milestone as it aims to establish itself in the competitive electric vehicle market. The company expects to achieve an average monthly commercial sales figure of $12.5 million, encompassing sales opportunities and pilot programs from both Mullen Commercial and its subsidiary, Bollinger Motors. This revenue forecast demonstrates Mullen's growing presence in the commercial EV sector and its potential for market expansion.
Concurrently, Mullen Automotive is implementing aggressive cost-reduction strategies, planning to decrease its overall spend from $12.8 million to $7.3 million. This $5.5 million reduction will be achieved through a 20% workforce reduction, elimination of passenger vehicle programs, and facility consolidations. These initiatives reflect Mullen's commitment to improving its financial position and streamlining operations in pursuit of profitability. CEO and Chairman David Michery expressed confidence in the company's direction, stating that through continued focus on revenue growth and expense reduction, near-term cash flow will continue to improve.
Mullen's strategic positioning is further solidified by recent achievements, including commercial vehicle production at its Tunica, Mississippi plant beginning in August 2023 and IRS approval for federal EV tax credits on its commercial vehicles in September 2023. This Qualified Manufacturer designation offers eligible customers up to $7,500 per vehicle, potentially boosting sales and market competitiveness. The company has expanded its commercial dealer network to seven dealers, including the recent addition of Papé Kenworth, providing increased sales and service coverage in key markets across multiple regions.
The company's product 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 have received California Air Resource Board and EPA certification for sale in the United States. The Mullen THREE has also received CARB-issued HVIP approval, providing up to a $45,000 cash voucher at the time of vehicle purchase. Additionally, Mullen's recent Foreign Trade Zone status approval for its Tunica manufacturing center offers benefits including deferment of duties owed and elimination of duties on exported vehicles, potentially contributing to cost savings and improved international competitiveness.
As Mullen Automotive navigates the evolving EV industry, its revenue projections and cost-cutting measures signal a strategic approach to growth and sustainability. The company's focus on commercial EVs, expansion of its dealer network, and operational optimizations position it to capitalize on increasing demand for electric vehicles in the commercial sector, while the workforce reduction and program eliminations represent difficult but necessary steps toward financial stability in a challenging market environment.
