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BREA, Calif. - Mullen Automotive Inc. (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer, announced today a record GAAP revenue of $3.18 million for the quarter ending March 31, 2025. While this represents significant year-over-year growth of nearly 997%, InvestingPro data shows the company faces challenges with a negative EBITDA of $242.28 million and concerning gross profit margins. Alongside this financial update, the company revealed plans for additional cost-cutting measures, including staff reductions, facility eliminations, and a decrease in operating expenses, set to take effect in April 2025.
The company’s cost-cutting initiatives are part of a broader strategy to integrate operations and reduce the current burn rate while boosting near-term commercial revenue generation. Mullen’s CEO David Michery emphasized the firm’s commitment to adapting to market needs and maintaining competitiveness in a dynamic economy. "Our continued focus is on selling vehicles and advancing our battery technologies," Michery stated.
Mullen’s commercial EV offerings include the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck, both of which are compliant with U.S. Federal Motor Vehicle Safety Standards, the Environmental Protection Agency, and the California Air Resources Board certifications. These certifications indicate strict adherence to clean air emissions standards.
The company’s commercial dealer network spans across key markets in the United States, including the West Coast, Midwest, Pacific Northwest, New England, and Mid-Atlantic regions. Mullen operates two U.S.-based vehicle plants located in Tunica, Mississippi, and Mishawaka, Indiana.
In a move to expand its commercial vehicle portfolio, Mullen acquired a majority stake in Bollinger Motors in September 2022. Bollinger Motors, known for its B4 Chassis Cab, an all-electric Class 4 commercial truck, has started customer deliveries as of October 2024.
This announcement is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. These statements reflect the company’s current expectations regarding its cost-cutting plans and their anticipated impact on the company’s financials. InvestingPro data reveals the company’s overall financial health score is rated as WEAK, with particularly concerning metrics in cash flow and profitability. Investors seeking detailed analysis of Mullen’s valuation and future prospects can access comprehensive financial metrics and expert insights through InvestingPro. Mullen has disclosed that it may need additional financing and that various factors could affect its business operations and market expansion. The company’s plans and expectations may change in response to future events or developments.
In other recent news, Mullen Automotive Inc. reported a significant increase in its fiscal second quarter revenue, reaching $3.18 million, which represents a 189% rise from the previous fiscal year’s total revenue of $1.1 million. This surge highlights the sales potential of Mullen’s commercial electric vehicles, including the Mullen ONE and Mullen THREE, both of which meet stringent U.S. safety and environmental standards. Additionally, Mullen Automotive has ended its agreement with Volt Mobility, which had involved the distribution of Mullen’s commercial EVs in the United Arab Emirates. The reasons for this termination were not disclosed, but it marks a shift in the company’s business strategy.
Furthermore, Mullen Automotive has expanded its equity incentive plan, adding 20 million more shares for awards and introducing an automatic annual increase. Amendments to the CEO’s performance stock award agreements were also approved, aligning incentives with the company’s long-term goals. In regulatory developments, Mullen faces a potential delisting from the Nasdaq due to its Market Value of Listed Securities falling below the required $35 million. The company has until August 25, 2025, to regain compliance.
In another development, Mullen Automotive announced the deployment of its Mullen ONE EV vans to Orange County, North Carolina, as part of the county’s Climate Action Plan. This initiative aims to transition to an all-electric fleet by 2025, with the Mullen ONE contributing to reduced carbon emissions. These recent developments reflect Mullen Automotive’s ongoing efforts to expand its presence and address challenges in the competitive EV market.
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