OAK PARK, Mich. – Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an electric vehicle manufacturer, has announced the addition of Affinity Truck Center as an official dealer for its subsidiary Bollinger Motors. The partnership is aimed at strengthening Bollinger Motors' presence in California's Central Valley, with Affinity set to offer the all-electric Bollinger B4 chassis cab from its sales locations in Bakersfield and Fresno.
Affinity Truck Center, a family-owned business since 1980, is also a certified dealership under the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), which supports the adoption of cleaner commercial vehicles. The Bollinger B4 is designed with input from fleets and upfitters, featuring a unique chassis that safeguards its 158-kwh battery pack, enhancing both capability and safety in the commercial market.
Serial production of the B4 is scheduled to commence on September 16, 2024, with customer deliveries expected to begin the following month. The partnership with Affinity Truck Center follows a series of recent milestones for Bollinger Motors, including expanding its dealer and service center network, achieving full warranty coverage for the B4, and securing sales with various fleet management groups.
Jim Connelly, chief revenue officer for Bollinger Motors, emphasized the strategic importance of the collaboration, citing Affinity's history in providing diverse transportation solutions and its potential to assist in the electrification of the Central Valley. Affinity President Kim Mesfin expressed enthusiasm for the B4, aligning with Bollinger Motors' vision for electric fleet vehicles and contributing to improved air quality in the region.
The information in this article is based on a press release statement from Mullen Automotive, Inc. and Bollinger Motors. The companies have outlined their forward-looking statements, highlighting the risks and uncertainties inherent in their business plans and future developments. These include factors such as market acceptance, regulatory changes, and the ongoing applicability of federal and state incentives for electric vehicles.
In other recent news, Mullen Automotive, owner of Bollinger Motors, has been making significant progress in the electric vehicle market. Bollinger Motors recently received California Air Resources Board certification for its B4 chassis truck, a Class 4 commercial vehicle. This certification opens up potential savings for customers through state incentives and federal tax credits. Bollinger Motors is set to start production of the B4 on September 16, 2024.
In addition to this, Mullen Automotive has expanded its dealer network through a partnership with TEC Equipment Inc., enhancing its presence in key Western U.S. markets. The company has also entered into a $210 million contract with Volt Mobility, a UAE-based leasing company, to supply 3,000 Class 1 and Class 3 EVs.
Mullen Automotive also issued over 13 million shares to Esousa Holdings LLC and over 3 million shares to Silverback Capital Corporation to fund its operations. Furthermore, Bollinger Motors has entered into an agreement with Texas Consulting & Development, LLC to supply Bollinger B4 Class 4 electric trucks. These are all recent developments in Mullen Automotive's operations.
InvestingPro Insights
As Mullen Automotive, Inc. (NASDAQ: MULN) forges ahead with its strategic partnership to enhance the presence of Bollinger Motors in California, the financial landscape presents a complex picture for investors. According to real-time data from InvestingPro, Mullen's market capitalization stands at a modest $22.72 million. This valuation reflects the challenges faced by the niche electric vehicle manufacturer in a competitive industry.
InvestingPro Tips for MULN indicate that the stock is currently in oversold territory, which could suggest a potential rebound or at least stabilization in the near term. However, the company has been quickly burning through cash, a condition that raises concerns about its financial sustainability in the long run. These insights are crucial for investors considering the stock's recent performance, which has seen a significant hit over the last week.
The financial health of Mullen is further highlighted by a few critical metrics: the company's price-to-book ratio as of Q3 2024 stands at 0.64, suggesting that the stock may be undervalued relative to its book value. However, the gross profit margin is deeply negative at -1364.48% for the same period, indicating that the cost of goods sold far exceeds the revenue generated, which is a red flag for profitability.
Moreover, with a revenue decline of 49.17% over the last twelve months as of Q3 2024, Mullen's ability to grow sales and scale operations effectively comes into question. This decline is exacerbated by a quarterly revenue contraction of 78.82% in Q3 2024, which underscores the urgency for the company to reverse this trend to maintain investor confidence.
For those interested in a deeper dive into Mullen's financials and strategic positioning, InvestingPro offers additional insights, with a total of 17 InvestingPro Tips available that provide a comprehensive analysis of Mullen's market performance and outlook. These tips can be accessed at https://www.investing.com/pro/MULN and may serve as a valuable resource for investors seeking to make informed decisions regarding Mullen's stock.
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