BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN) announced today that its subsidiary, Bollinger Motors, is set to begin production of the Bollinger B4 Chassis Cab, a new Class 4 electric commercial truck, on September 16, 2024. The company expects to commence deliveries and revenue recognition in October 2024.
The Bollinger B4 is designed with input from fleets and upfitters to meet the specific needs of the commercial market. Its unique chassis encloses the 158-kWh battery pack, aiming to provide both capability and safety. Bollinger Motors has differentiated the B4 from competitors by avoiding the use of outboard-mounted batteries on adapted internal combustion engine (ICE (NYSE:ICE)) chassis, which can expose batteries to damage.
To facilitate production, Bollinger Motors has partnered with Roush Industries, a company with over 50 years of experience in engineering, prototyping, and manufacturing. Roush has already worked with Bollinger Motors in producing the B4 Development Vehicles in 2023.
Bryan Chambers, president of Bollinger Motors, highlighted the team effort required to progress from startup to production, expressing pride in the dedication shown by the Bollinger team, Roush Industries, and the supply chain network. Jim Connelly, chief revenue officer of Bollinger Motors, noted strong market momentum and confidence in the B4's potential to transform customer businesses.
In recent developments, Bollinger Motors has achieved several milestones, including full warranty coverage for the B4 Chassis Cab, an Environmental Protection Agency Certificate of Conformity, and significant vehicle sales to various fleet management and service providers. The company has also expanded its dealer and service center network and secured partnerships for battery supply, vehicle assembly operations, warranty administration, and mobile service provision.
Additionally, Bollinger Motors has qualified for federal clean vehicle tax credits under the Inflation Reduction Act, amounting to $40,000 per B4 chassis cab.
This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties, which could cause actual results to differ from those projected. Mullen Automotive has not provided any additional information beyond what is contained in the press release.
In other recent news, Mullen Automotive has seen substantial developments in its operations. The electric vehicle manufacturer reported total assets of approximately $191.4 million as of June 30, 2024, and secured $250 million in new financing commitments to fuel growth. Mullen has also expanded its sales and distribution network, adding six dealerships and five new commercial dealer partners.
The company has started production of commercial vehicles at its Tunica, Mississippi plant and has received IRS approval for federal EV tax credits on its commercial vehicles. Mullen's commercial EVs, the Mullen ONE and Mullen THREE, have been recognized for potential incentives in Massachusetts and California.
Mullen has completed a delivery of Mullen ONE electric cargo vans to the University of Virginia and sold a Mullen THREE truck to Princeton University, marking a growing presence in the higher education sector. The company also expanded its dealership network through its Boston-area dealer, Eco Auto.
Mullen has appointed John Taylor as the President of the Commercial EV division, following his significant contributions, including the successful launch of Mullen's commercial EV lines. These are all recent developments in Mullen Automotive's operations.
InvestingPro Insights
As Mullen Automotive gears up for the production of the Bollinger B4 Chassis Cab, investors are closely monitoring the company's financial health and stock performance. According to recent data from InvestingPro, Mullen Automotive has a market capitalization of approximately $9.73 million. The company's revenue for the last twelve months as of Q3 2024 stood at $0.16 million, reflecting a significant decline in revenue growth of -49.17%. The stock price has also experienced substantial volatility, with a 1-week total return of -35.32% and an even more drastic 1-year total return of -99.61%.
InvestingPro Tips highlight several critical factors that potential investors should consider. Mullen Automotive is trading at a low Price / Book multiple of 0.28, which could suggest undervaluation relative to the company's book value. However, the company is also quickly burning through cash and has weak gross profit margins, with a gross profit margin of -1364.48% for the same period. These indicators may raise concerns about the company's ability to sustain its operations and fulfill its short-term obligations, which exceed its liquid assets.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available on the platform. These tips provide deeper insights into Mullen Automotive's financial performance and stock trends, such as the stock's high price volatility and its position as a niche player in the industry. With this information, investors can make more informed decisions regarding their interest in Mullen Automotive as the company approaches a significant milestone in its production timeline.
It's worth noting that the company's stock is currently trading near its 52-week low, which could be a critical point for investors looking for entry points or considering the stock's potential for a rebound. For those interested in exploring the full range of 19 InvestingPro Tips, which may shed further light on Mullen Automotive's financial standing and market position, they can be found at: https://www.investing.com/pro/MULN.
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