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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has commenced the shipment of commercial EV cargo vans and trucks to Volt Mobility, a UAE-based leasing company. The initial dispatch, part of a $210 million contract for 3,000 Class 1 and Class 3 EVs, took place on September 2, 2024, signaling the start of a 16-month delivery schedule.
Under the agreement, revenue recognition for Mullen will begin in the first fiscal quarter starting October 1, 2024. This deal follows a $3 million deposit from Volt, as previously announced on August 26, 2024. Volt Mobility, which leases vehicles to corporate clients in the Middle East and Gulf States, counts major delivery services like UPS, DHL, and FedEx (NYSE:FDX) among its clientele.
The vehicles are being assembled at Mullen's Mississippi facility, capable of producing up to 20,000 Class 1 and 6,000 Class 3 vehicles annually. Volt's order includes the Mullen ONE Class 1 EV cargo van and the Mullen THREE Class 3 EV cab chassis truck, as well as Bollinger B4 and B5 cab chassis trucks from Mullen's subsidiary, Bollinger Motors.
Mullen's CEO, David Michery, expressed that the shipment marks a significant milestone in the company's global commercial EV business expansion. The company's commercial EVs comply with U.S. Federal Motor Vehicle Safety Standards, EPA, and California Air Resources Board (CARB) certifications. The Bollinger B4 is set to start production on September 16, 2024, with deliveries beginning in October.
Volt Mobility, established in 2020, has rapidly become a prominent commercial EV leasing company in the region, offering a range of light to heavy-duty electric vehicles. Mullen Automotive, on the other hand, operates two vehicle plants in the United States and recently expanded its commercial dealer network. Mullen's vehicles have also received IRS approval for federal EV tax credits and CARB's HVIP approval, offering significant incentives to customers.
The information provided here is based on a press release statement. It should be noted that forward-looking statements involve risks and uncertainties, and actual results may differ. Mullen has not assumed any obligation to update forward-looking statements as they are based on current expectations and may change.
In other recent news, Mullen Automotive issued new shares, expanded its dealer network, secured a $210 million deal with Volt Mobility, and set a production date for the Bollinger B4 EV truck. The company issued over 13 million shares to Esousa Holdings LLC and over 3 million shares to Silverback Capital Corporation. Mullen Automotive's subsidiary, Bollinger Motors, partnered with TEC Equipment Inc. to distribute its commercial electric vehicles across key Western U.S. markets. Mullen Automotive also inked a purchase agreement with Volt Mobility to supply 3,000 EV cargo vans and trucks over the next 16 months. Bollinger Motors is set to begin production of the Bollinger B4, a Class 4 electric commercial truck, on September 16, 2024. These are all recent developments in Mullen Automotive's operations.
InvestingPro Insights
As Mullen Automotive (NASDAQ:MULN) embarks on its significant EV shipment contract with Volt Mobility, the company's financial health and stock performance are important indicators for investors to consider. According to InvestingPro data, Mullen's market capitalization stands at a modest $33.55 million, reflecting its status as a niche player in the electric vehicle industry. The company's revenue for the last twelve months as of Q3 2024 is reported at $0.16 million, with a steep revenue decline of 49.17% during that period. This underscores the challenges Mullen faces in scaling its operations and the importance of contracts such as the one with Volt Mobility for its future growth.
InvestingPro Tips suggest that Mullen's stock has been experiencing high price volatility and is currently trading near its 52-week low, which could be a point of concern for potential investors. Additionally, the stock has taken a significant hit over the last week, month, and six months, with price total returns of -22.82%, -76.05%, and -96.93% respectively. These metrics highlight the stock's recent underperformance and may suggest caution among investors considering the company's shares.
For those looking to delve deeper into Mullen Automotive's financials and stock performance, InvestingPro offers additional insights, including a total of 19 InvestingPro Tips for MULN. These tips provide a comprehensive analysis of the company's financial health and stock trends, which could be valuable for making informed investment decisions. More details and tips can be found at: https://www.investing.com/pro/MULN
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