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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer with a market capitalization of $3.2 million, has reached a settlement with investment entities GEM Yield Bahamas Limited and GEM Global Yield LLC SCS, collectively known as GEM, over previous legal disputes. According to InvestingPro data, the company faces significant financial challenges, with a current ratio of 0.25 indicating potential liquidity concerns. The agreement, which concludes all outstanding litigation, involves the transfer of Mullen’s Mishawaka, Indiana manufacturing facility to GEM.
The settlement, announced today, satisfies a federal court judgment in favor of GEM and allows Mullen to transfer the ownership of the facility without encumbrances. With this resolution, Mullen aims to concentrate on its forward-looking operational goals, while all pending enforcement and post-judgment proceedings will be terminated with prejudice.
The Mishawaka plant, which spans approximately 780,000 square feet on nearly 58 acres, was previously utilized by General Motors for Hummer H2 production and later by AM General. It features an extensive automotive infrastructure, including a body shop, paint shop, general assembly area, and water treatment plant.
Mullen’s business activities include the production of commercial EVs, with manufacturing sites in both Tunica, Mississippi, and the now-transferred Mishawaka, Indiana. While the company has launched several vehicles, such as the Mullen ONE and Mullen THREE, which have received certification from the California Air Resource Board (CARB) and the Environmental Protection Agency (EPA), InvestingPro analysis reveals the company generated revenue of $8.93 million in the last twelve months, with a concerning gross profit margin of -241%. Subscribers to InvestingPro can access 14 additional key financial insights about Mullen’s performance and prospects.
The company’s commercial dealer network spans across the United States, providing sales and service in key regions. Mullen also holds a majority stake in Bollinger Motors, which has initiated production of its B4 electric truck and developed a dealer network of over 50 locations nationwide.
This settlement marks an important step for Mullen as it seeks to streamline its operations and focus on the expansion of its electric vehicle offerings. The transfer of the Mishawaka facility to GEM is part of Mullen’s broader strategy to resolve disputes and strengthen its business position in the competitive EV market. Financial metrics from InvestingPro indicate the company faces substantial challenges, with an overall Financial Health Score rated as "WEAK" and a significant cash burn rate that may impact its operational capabilities.
The information in this article is based on a press release statement from Mullen Automotive, Inc.
In other recent news, Mullen Automotive has increased its stake in Bollinger Motors to 95% after settling legal claims with Bollinger’s founder. This move allows Bollinger Motors to exit receivership and continue operating as a subsidiary of Mullen Automotive, with a focus on its all-electric commercial trucks. Additionally, Mullen’s commercial electric vehicles, including the Mullen ONE Class 1 EV cargo van, are now eligible for rebates up to $7,500 through the ComEd Business & Public Sector EV Rebate Program in Illinois. This program is expected to provide significant cost savings for businesses transitioning to electric vehicles.
Mullen Automotive also announced the upcoming release of the Mullen FIVE RS, a high-speed EV crossover, set to debut in Germany in December 2025. The vehicle features impressive specifications, including a top speed of over 200 mph and a 0-60 mph acceleration in under 2 seconds. Furthermore, Mullen has unveiled plans to execute a 1-for-100 reverse stock split to comply with Nasdaq’s minimum bid price requirement. This action, effective June 2, 2025, will consolidate shares and adjust equity awards accordingly.
The company is collaborating with Faissner Petermeier Fahrzeugtechnik AG to ensure the quality of the FIVE RS, aiming for a successful market entry. Mullen’s authorized dealers in Illinois, Pritchard EV and Range Truck Group, are assisting customers with rebate processes. These developments highlight Mullen Automotive’s strategic efforts to strengthen its position in the EV market and expand its product offerings.
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