Mullen Automotive (NASDAQ: MULN) CEO and Chairman David Michery provided shareholders with a comprehensive update on the company's recent progress and financial performance, highlighting expanding sales efforts and substantial new financing. The company has secured a $100 million preferred instrument and a $150 million fully available equity line, providing critical capital for operations in the capital-intensive automotive industry. This financial backing supports Mullen's ability to penetrate the competitive EV market as it secures customer interest in its products.
The update detailed significant progress at Bollinger Motors, a Mullen subsidiary that has obtained regulatory and sales approvals essential for bringing vehicles to market. Bollinger has formed a partnership with Roush Industries, a well-established name in automotive engineering and manufacturing, which could accelerate product development and production capabilities. Most notably, Bollinger has commenced production on its first customer-ready B4 electric trucks, marking a crucial transition from development to manufacturing and positioning the company to compete in the growing commercial EV segment.
Michery expressed optimism about the company's future, stating that Mullen's group of companies continues to work toward meeting milestones and growing sales despite challenges with the stock price. The company has achieved several recent milestones, including starting commercial vehicle production at its Tunica, Mississippi plant in August 2023 and receiving IRS approval for federal EV tax credits on its commercial vehicles. This Qualified Manufacturer designation offers eligible customers up to $7,500 per vehicle, potentially boosting the attractiveness of Mullen's vehicles to buyers.
Mullen's product lineup now 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 (CARB) and EPA certification for sale in the United States. The CARB-issued HVIP approval for the Mullen THREE provides an additional incentive with up to a $45,000 cash voucher at purchase. The company has expanded its commercial dealer network to seven dealers, including the recent addition of Papé Kenworth, providing broader sales and service coverage across key markets in the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions.
As Mullen Automotive continues advancing in vehicle production, sales, and financing, the company appears to be positioning itself as a serious contender in the EV market. The success of these efforts could have significant implications for the broader EV industry, potentially accelerating electric vehicle adoption in both commercial and consumer sectors as businesses look to electrify their fleets and consumers seek more sustainable transportation options.
