BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle manufacturer, has announced the completion of the first phase of its battery line integration at a high-energy facility in Fullerton, California. This facility is focused on the production of next-generation American-made EV battery packs, which are vital to the company's zero-emissions goals and reducing dependency on imported battery components.
The operationalization process of the plant has been executed in planned stages, starting with facility preparations and progressing to the installation of battery assembly line equipment. The initial phase concluded with the successful startup and early-stage commissioning of two battery assembly lines.
Mullen's CEO, David Michery, highlighted the significance of the new battery assembly plant, stating it represents both an investment in the company's future and a commitment to U.S. battery production. "Battery packs are a critical part of our supply chain as it strengthens our market position and supports the transition to American-made battery components," Michery said.
The facility is expected to contribute to the local economy by creating jobs. Production is set to begin in early 2025, and Mullen anticipates hiring over 200 individuals for roles in battery production and operational support.
Mullen Automotive has been active in the commercial electric vehicle market, with vehicle plants in Mississippi and Indiana. The company began commercial vehicle production in August 2023 and received IRS approval for federal EV tax credits on its commercial vehicles in September 2023. As of January 2024, Mullen's Class 1 EV cargo van and Class 3 EV cab chassis truck are both CARB and EPA certified, and available for sale in the U.S.
This announcement is based on a press release statement.
InvestingPro Insights
Mullen Automotive, Inc. (NASDAQ: MULN) is making strides in its battery production capabilities, which is a pivotal aspect of its strategy to become a key player in the electric vehicle industry. As the company focuses on its next-generation EV battery packs, it's important for investors to consider the financial health and market performance of Mullen.
According to InvestingPro data, Mullen Automotive holds a market cap of approximately $17.23 million and is trading at a low Price / Book multiple of 0.08 as of the last twelve months leading up to Q1 2024. This could be indicative of the stock being undervalued relative to its assets, which is a point of interest for value investors. However, the company's gross profit margin stands at a negative 458.51%, reflecting significant challenges in profitability.
InvestingPro Tips suggest that Mullen's stock is currently in oversold territory, with an RSI indicating that it might be due for a rebound. Additionally, the stock is trading near its 52-week low, which could present a potential entry point for investors looking for long-term opportunities. Nevertheless, it is critical to note that Mullen has been quickly burning through cash, which raises concerns about its financial sustainability.
For those considering an investment in Mullen, there are additional InvestingPro Tips available, offering deeper insights into the company's financials and market standing. With a total of 19 InvestingPro Tips, investors can gain a more comprehensive understanding of Mullen's position in the market. To explore these tips and make more informed investment decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As Mullen Automotive progresses with its battery assembly plant and aims to bolster its presence in the EV market, keeping an eye on these financial metrics and market indicators will be crucial for stakeholders and potential investors alike.
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