BREA, Calif. - Mullen Automotive, Inc. (NASDAQ:MULN) announced today that its subsidiary, Bollinger Motors, has entered into an agreement with Texas Consulting & Development, LLC (TCD) to supply Bollinger B4 Class 4 electric trucks. This partnership aims to bolster TCD's service offerings to ports and industries with a focus on Vehicle-to-Grid (V2G) and Vehicle-to-Building (V2B) technologies.
The collaboration is expected to enhance TCD's ability to provide comprehensive clean energy solutions and assist clients in developing strategies to reduce carbon emissions. Bollinger Motors' Chief Revenue Officer, Jim Connelly, emphasized the alignment of both companies' goals to leverage electrification technology for operational efficiency and carbon footprint reduction.
Steven Villarreal, Managing Partner of TCD, highlighted the partnership's potential to integrate Bollinger's commercial trucks into a broader infrastructure that includes charging options for EV fleets. This integration is seen as a step forward in addressing the future of EVs and their role in edge energy production for grid providers in the U.S.
Bollinger Motors has recently achieved several milestones, including the start of Bollinger B4 production, sales to various fleet management companies, and expansion of its dealer and service center network. Furthermore, Bollinger Motors has qualified for federal clean vehicle tax credits under the Inflation Reduction Act, offering significant incentives for the adoption of its B4 chassis cab.
The agreement with TCD follows Bollinger Motors' continued efforts to expand its market presence and provide electric vehicle solutions that meet the needs of various industries. This partnership is based on a press release statement and represents a strategic move within the electric vehicle manufacturing sector.
In other recent news, Mullen Automotive has made significant strides in the electric vehicle market. The company has begun shipping the first commercial EV cargo vans and trucks to Volt Mobility, a UAE-based leasing company. This is part of a $210 million contract for 3,000 Class 1 and Class 3 EVs, which signals the onset of a 16-month delivery schedule.
Mullen Automotive has also issued over 13 million shares to Esousa Holdings LLC and over 3 million shares to Silverback Capital Corporation to finance its operations. Additionally, Bollinger Motors, a subsidiary of Mullen Automotive, has expanded its commercial EV dealer network in key Western U.S. markets through a partnership with TEC Equipment Inc.
In line with these developments, Mullen Automotive has secured a $210 million deal with Volt Mobility to supply 3,000 EV cargo vans and trucks over the next 16 months. Bollinger Motors has set a production date for the Bollinger B4, a Class 4 electric commercial truck, on September 16, 2024, with deliveries expected to begin in October 2024. These are all recent developments in Mullen Automotive's operations.
InvestingPro Insights
In the context of Mullen Automotive's recent partnership announcement with Texas Consulting & Development, LLC, it's pertinent to consider the company's financial health and market performance. Mullen Automotive has been facing significant challenges, as reflected in its real-time metrics and InvestingPro Tips.
According to InvestingPro data, Mullen Automotive has a market capitalization of approximately $34.72 million, which is relatively small compared to other players in the electric vehicle industry. The company's revenue for the last twelve months, as of Q3 2024, stands at $0.16 million, which indicates a substantial decline of 49.17% in revenue growth. This contraction in revenue is even more pronounced on a quarterly basis, with a decrease of 78.82% in the same period. Furthermore, the gross profit margin is strikingly negative at -1364.48%, suggesting that the company spends far more to produce its goods than it earns from their sale.
InvestingPro Tips highlight several areas of concern for investors considering Mullen Automotive's stock. The company is quickly burning through cash and has been trading with high price volatility. In addition, Mullen's short-term obligations exceed its liquid assets, which could pose liquidity risks. Over the past month, the stock has taken a significant hit, and it has fared poorly over the last six months. This is corroborated by the price total return metrics, which show a one-week price total return of -8.58%, and a staggering one-year price total return of -99.55%.
Despite these challenges, it's important to note that Mullen Automotive is making strategic moves to expand its market presence, as evidenced by the recent agreement with TCD. Investors interested in a more in-depth analysis can find additional InvestingPro Tips for Mullen Automotive, which provide further insights into the company's financials and stock performance. There are 17 additional InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/MULN.
While the partnership with TCD may provide future growth opportunities for Mullen Automotive, potential investors should carefully consider the company's current financial state and market performance when evaluating its stock.
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