Mullen Automotive has reported a substantial increase in revenue for the quarter ended September 30, 2024, with the company anticipating approximately $4.5 million in revenue compared to $65,235 in the previous quarter. This represents a 6,791% quarter-over-quarter increase, marking a significant milestone in the company's growth trajectory. The remarkable revenue surge comes alongside a continued reduction in monthly cash burn, which decreased to approximately $12.7 million from $12.8 million in the previous quarter and $18.1 million for the quarter ended March 31, 2024.
This financial progress coincides with Mullen's expansion in the electric vehicle market. The company began commercial vehicle production at its Tunica, Mississippi plant in August 2023 and received 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. Mullen'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 now California Air Resource Board and EPA certified for sale in the U.S.
The company has been expanding its commercial dealer network, recently adding Papé Kenworth to bring the total to seven dealers. This expanded network provides sales and service coverage in key markets across the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions. Additionally, Mullen's Tunica, Mississippi commercial vehicle manufacturing center has received Foreign Trade Zone status approval, offering benefits such as deferment of duties owed and elimination of duties on exported vehicles. More information about the company's manufacturing facilities can be found at https://www.mullenusa.com.
David Michery, CEO and Chairman of Mullen, expressed optimism about the company's performance, stating that revenue is up significantly and cash burn continues to decrease. The company projects achieving breakeven on a cash basis by December 2025. The Mullen THREE has also received CARB-issued HVIP approval, providing up to a $45,000 cash voucher at the time of vehicle purchase, which could further stimulate demand. For detailed specifications of Mullen's commercial vehicles, visit https://www.mullenusa.com/commercial-vehicles.
The substantial revenue growth and improving financial metrics reported by Mullen Automotive are significant for the EV industry and investors. As the automotive sector continues its shift toward electrification, Mullen's progress demonstrates the potential for emerging manufacturers to gain traction in this competitive market. The company's focus on commercial EVs, expanding dealer network, and strategic manufacturing decisions appear to be yielding positive results. For the broader EV industry, Mullen's growth could signal increasing adoption of electric commercial vehicles, a crucial segment for reducing transportation-related emissions.
Investors and industry observers will likely be watching closely to see if Mullen can maintain this growth trajectory and achieve its goal of cash flow breakeven by December 2025. The company's performance in the coming quarters will be crucial in determining whether it can establish itself as a significant player in the evolving EV market. The combination of dramatic revenue growth, reduced cash burn, and strategic expansions positions Mullen as a company to watch in the commercial electric vehicle space.
