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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced additional orders for five Mullen ONE, Class 1 EV cargo vans from two prominent California universities located in Los Angeles and the San Francisco Bay Area. The orders, to be fulfilled by the Papé Group and Randy Marion Automotive Group, reflect the universities' ongoing commitment to sustainability and carbon emissions reduction. The announcement comes as the company's stock trades near its 52-week low, with InvestingPro data showing a significant 73% decline year-to-date.
The Mullen ONE EV cargo vans, known for their compact size and substantial cargo space, are becoming increasingly popular on college campuses for various logistical needs such as deliveries and maintenance operations. Mullen's commercial EVs are designed to meet the urban demands of last-mile delivery services, and the company has seen a growing interest from educational institutions in electrifying their fleets. According to InvestingPro analysis, while the company's revenue grew 199% in the last twelve months, it faces challenges with cash burn and liquidity, with current assets covering only 34% of short-term obligations.
David Michery, CEO and chairman of Mullen Automotive, expressed that the repeat orders from the universities are a testament to the value and performance of Mullen's commercial EVs. The company's lineup also includes the Mullen THREE, 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.
Mullen Automotive operates two vehicle plants in the United States, located in Tunica, Mississippi, and Mishawaka, Indiana. Since beginning commercial vehicle production in Tunica in August 2023 and achieving CARB and EPA certification by January 2024, Mullen has expanded its commercial dealer network to seven dealers across key U.S. markets.
The company's growth is further supported by its majority-owned EV truck company, Bollinger Motors, which has achieved production launch, CARB certification, FMVSS compliance, and EPA Certificate of Conformity, along with developing a nationwide dealer and service network.
The latest EV orders from the California universities underscore the increasing adoption of electric vehicles in the commercial sector and Mullen Automotive's role in this transition. This news is based on a press release statement. InvestingPro subscribers have access to 18 additional investment tips for MULN, including detailed analysis of the company's financial health score and valuation metrics, crucial for understanding the complete investment picture in the competitive EV sector.
In other recent news, Mullen Automotive has regained compliance with Nasdaq Listing Rule 5250(c)(1) after timely submission of its Annual Report, ensuring the continued listing of its common stock on The Nasdaq Capital Market. The company has also reported a surge in electric vehicle sales, generating $5.5 million from selling 100 Class 1 and Class 3 EV cargo vans and trucks. Mullen Automotive has secured an additional $4.4 million in financing through the issuance of senior secured convertible notes and related warrants. Analysts from InvestingPro have noted the company's rapid cash burn and challenging profit margins. These are recent developments from Mullen Automotive.
Mullen Automotive has also 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. The company has committed $12 million to battery development and manufacturing in the United States, aiming to enhance its production capabilities. Mullen Automotive's subsidiary, Bollinger Motors, expanded its national dealer network into the mid-Atlantic and Midwest regions. The company 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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