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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an electric vehicle manufacturer with a current market capitalization of $2.56 million, has announced the expansion of its battery production capabilities at its Fullerton, California facility. According to InvestingPro data, the company’s stock is trading near its 52-week low, reflecting ongoing market challenges in the EV sector. The company acquired additional battery line equipment from Nikola (NASDAQ:NKLA) Corporation to enhance its production of American-made battery packs, modules, and advanced solid-state polymers.
The newly purchased assets from Nikola include a high-volume standard battery chemistry production line and an electro-dynamic shaker system for in-house laboratory testing. With these additions, Mullen’s Fullerton facility will house two high-volume standard battery chemistry lines, a high-precision, low-volume standard battery chemistry R&D line, a high-precision, low-volume solid-state polymer R&D line, and a complete battery testing laboratory.
Mullen’s CEO and chairman, David Michery, emphasized the company’s commitment to transitioning to American-made battery components, highlighting the strategic move in Southern California. This expansion aligns with Mullen’s strategy to meet the demand for domestically produced battery systems and reduce reliance on imports.
In September 2023, Mullen initially purchased battery production assets from Romeo Power, a subsidiary of Nikola Corporation, for $3.5 million. The deal included equipment, inventory, and intellectual property for EV battery pack and module production. On December 17, 2024, Mullen submitted a modified plan to the U.S. Department of Energy seeking $55 million in matching funds to support these manufacturing capabilities. InvestingPro analysis reveals the company’s current ratio of 0.34 and negative EBITDA of $250.65 million, highlighting the importance of securing additional funding. For deeper insights into Mullen’s financial health and 18 additional ProTips, consider an InvestingPro subscription.
Mullen Automotive, headquartered in Southern California, operates two U.S.-based vehicle plants in Tunica, Mississippi, and Mishawaka, Indiana. The company has already begun commercial vehicle production and has expanded its commercial dealer network across the United States.
The start of production at the Fullerton facility is planned for the second half of 2025. This development is a step forward in Mullen’s plan to produce commercial vehicle battery packs and explore other industry applications and commercial sales opportunities.
This expansion is based on a press release statement and is part of Mullen’s broader efforts to enhance its position in the electric vehicle market. The company’s forward-looking statements involve risks and uncertainties, including the timing of the installation of the new assets and the receipt of potential DOE funding. With annual revenue of $1.09 million and a WEAK financial health score according to InvestingPro, investors should carefully monitor the company’s execution of these expansion plans. Mullen has stated that it may update its forward-looking statements as new information becomes available or as future events unfold.
In other recent news, Mullen Automotive has reported a surge in electric vehicle sales, generating $5.5 million from selling 100 Class 1 and Class 3 EV cargo vans and trucks. The company has also secured an additional $4.4 million in financing through the issuance of senior secured convertible notes and related warrants. Mullen Automotive has committed $12 million to battery development and manufacturing in the United States, aiming to enhance its production capabilities. The company has fulfilled a significant order of two Class 3 EV trucks for Westland Floral and sold its first EV van to the home service brand, Mr. Appliance. Analysts from InvestingPro have noted the company’s rapid cash burn and challenging profit margins. Mullen Automotive’s subsidiary, Bollinger Motors, expanded its national dealer network into the mid-Atlantic and Midwest regions. The company also received substantial orders for its electric commercial vehicles from Associated Coffee and TEC Equipment. Mullen Automotive announced strategic partnerships with Emerald Transportation Solutions and the National Auto Fleet Group. These are recent developments from Mullen Automotive.
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