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DUBAI - Mullen Automotive, Inc. (NASDAQ:MULN), an American electric vehicle (EV) manufacturer, has commenced its foray into the United Arab Emirates (UAE) market. This week, the company's technical and sales team landed in Dubai to facilitate the initial delivery of Mullen ONE EV cargo vans and Mullen THREE cab chassis trucks, marking a significant step in their $210 million contract with Volt Mobility.
The delivery, which took place on September 18, 2024, is part of a larger order from Volt Mobility that includes 300 electric commercial vehicles to be supplied throughout 2024, with an additional 3,000 vehicles expected for delivery in 2025. Mullen also plans to establish a parts and service network to support the fleet operations of Volt Mobility in the region.
Volt Mobility operates in the Gulf Cooperation Council (GCC) region, providing vehicle transport and leasing services, as well as EV charging infrastructure in the Middle East. Mullen's collaboration with VoltiE Group, a Miami-based EV charging company, aims to enhance the EV ecosystem by providing both vehicles and charging solutions.
Mullen's expansion into the UAE underscores the company's global ambitions and follows its recent production commencement of commercial vehicles in Tunica, Mississippi, in August 2023. The company's commercial vehicles have received certification from the California Air Resource Board (CARB) and the Environmental Protection Agency (EPA), making them eligible for federal EV tax credits and cash vouchers for customers in the United States.
The company's CEO, David Michery, emphasized the importance of the UAE market and the collaborative efforts with Volt Mobility to ensure a successful market launch.
This news article is based on a press release statement and provides an overview of Mullen Automotive's strategic move into the UAE market with its electric commercial vehicles. It reflects the company's current activities and future plans without speculation or promotional commentary.
In other recent news, Mullen Automotive, through its subsidiary Bollinger Motors, has set the Manufacturer's Suggested Retail Price for its all-electric Bollinger B4 Chassis Cab at $158,758. The B4, a Class 4 commercial truck, is set to begin customer deliveries in October 2024. Bollinger Motors has also received California Air Resources Board certification for the B4 truck, enabling additional state incentives for customers.
In other business developments, Mullen Automotive has expanded its employee equity incentive program by 11 million shares and initiated a 1-for-100 reverse stock split to comply with Nasdaq's minimum bid price requirement. The company has also begun shipping the first commercial EV cargo vans and trucks to Volt Mobility, marking the start of a $210 million contract for 3,000 Class 1 and Class 3 EVs.
Mullen Automotive has also issued over 13 million shares to Esousa Holdings LLC and over 3 million shares to Silverback Capital Corporation. The company has expanded its dealer network through partnerships with Affinity Truck Center and TEC Equipment Inc. These recent developments reflect Mullen Automotive's continued efforts to enhance its market presence and meet the growing demand for electric commercial vehicles.
InvestingPro Insights
Amidst Mullen Automotive's strategic expansion into the UAE market, a glance at the company's financial health and stock performance reveals critical insights. According to InvestingPro data, Mullen Automotive's market capitalization stands at a modest $12.22 million, reflecting the size of the company in the competitive electric vehicle industry. Additionally, the company's Price / Book ratio as of the last twelve months ending Q3 2024 is 0.35, which indicates the stock may be trading at a low valuation relative to the company's book value.
However, the revenue data paints a challenging picture, with a significant decline of 49.17% in revenue over the last twelve months leading up to Q3 2024. This downturn is further emphasized by a quarterly revenue growth drop of 78.82% in Q3 2024. These figures suggest that Mullen Automotive is facing substantial headwinds in generating sales. Moreover, the company's gross profit margin stands at a deeply negative -1364.48%, underscoring the cost challenges it faces in producing its vehicles.
InvestingPro Tips highlight several areas of concern for investors and potential stakeholders. Mullen Automotive may struggle to make interest payments on its debt, as indicated by one of the tips, and is rapidly depleting its cash reserves. Furthermore, the company's short-term obligations exceed its liquid assets, which could pose liquidity risks. These factors are crucial for investors to consider, especially given the company's ambitious expansion plans.
For those interested in a deeper analysis, InvestingPro offers additional tips on Mullen Automotive, providing a comprehensive view of the company's financial position and stock performance. There are 19 more InvestingPro Tips available, which could further inform investment decisions regarding Mullen Automotive.
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