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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), a manufacturer of electric vehicles (EVs), has announced that its Mullen ONE and Mullen THREE commercial electric vehicles are now available for purchase through the Sourcewell contract held by National Auto Fleet Group (NAFG). This development allows U.S. government agencies and educational institutions to procure these EVs without the typical extended bidding processes. According to InvestingPro data, the company faces significant financial challenges with an EBITDA of -$242.28M and a weak financial health score of 0.5 out of 5.
Sourcewell, a government agency, streamlines procurement for over 50,000 member agencies by managing hundreds of competitively solicited contracts. NAFG, a vehicle vendor selected by Sourcewell, will facilitate the acquisition of Mullen’s Class 1 and Class 3 electric vehicles. This partnership aims to expedite the vehicle purchasing process for municipal customers, potentially reducing the time to acquisition. InvestingPro analysis reveals the company is quickly burning through cash, with a concerning current ratio of 0.24, indicating potential challenges in meeting short-term obligations. (Unlock 18 additional ProTips with InvestingPro subscription.)
David Michery, CEO and chairman of Mullen Automotive, highlighted the importance of the addition of Mullen products to Sourcewell, stating it would greatly benefit municipal customers by simplifying the purchasing process. The company’s revenue growth stands at 996.94%, though InvestingPro data shows concerning gross profit margins of -484.91%.
NAFG also offers point-of-sale vouchers through the California Air Resource Board (CARB) HVIP program for the Mullen THREE, Class 3 EV truck. The 2024 model, with a suggested MSRP of $68,500, is eligible for a cash voucher of up to $45,000. Combining this with the available $7,500 federal tax credit could bring the net cost of the vehicle to under $17,000.
Mullen Automotive operates two U.S.-based vehicle plants and has expanded its commercial dealer network to seven dealers, offering coverage in key U.S. markets. In September 2022, Mullen acquired a majority stake in Bollinger Motors, which has since achieved several milestones, including production launch, CARB certification, and establishing a dealer and service network.
The information for this article is based on a press release statement.
In other recent news, Mullen Automotive has announced the expansion of its battery production capabilities at its Fullerton, California facility. The company acquired additional equipment from Nikola (OTC:NKLAQ) Corporation to boost its production of American-made battery packs and modules. This move aligns with Mullen’s strategy to meet the demand for domestically produced battery systems. Additionally, Mullen Automotive has approved a reverse stock split, following a Special Meeting of Stockholders where it was decided to adjust the company’s stock structure. This decision is aimed at enhancing the perceived value of the stock and ensuring compliance with exchange requirements.
Mullen has also secured repeat orders for its Mullen ONE Class 1 EV cargo vans from two California universities, reflecting the growing interest in sustainable transportation solutions. The orders will be fulfilled by the Papé Group and Randy Marion Automotive Group, supporting the universities’ sustainability goals. Furthermore, Mullen Automotive regained Nasdaq compliance by filing its Annual Report on Form 10-K, ensuring continued listing on The Nasdaq Capital Market. The company has also entered a strategic partnership with EO Charging to provide electrification solutions for Bollinger Motors’ commercial fleet customers, enhancing infrastructure support for electric vehicles. These developments highlight Mullen Automotive’s ongoing efforts to strengthen its position in the electric vehicle market.
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