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BREA, Calif. - Mullen Automotive Inc. (NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced a significant increase in revenue, expecting to report approximately $4.5 million for the quarter ended September 30, 2024. This figure marks a sharp rise of 6791% from the $65,235 reported in the previous quarter.
The company also disclosed a marginal decrease in its monthly cash burn rate, now at $12.7 million, down from $12.8 million in the preceding quarter. This follows a more substantial reduction from $18.1 million for the quarter ended March 31, 2024. Mullen is undertaking measures to further reduce operating expenses, aiming to reach a cash flow breakeven point by the end of December 2025.
Mullen's recent operational updates include receiving $11.9 million from investors, with an additional $600,000 expected, which represents 25% of their additional investment right. The company also has an equity line commitment that could potentially bring in an additional $150 million, subject to market conditions and other factors.
The company began commercial vehicle production in Tunica, Mississippi, in August 2023, and in September 2023, received IRS approval for federal EV tax credits on its commercial vehicles. As of January 2024, Mullen's Class 1 EV cargo van and Class 3 EV cab chassis truck are both certified and available for sale in the U.S.
Mullen has expanded its commercial dealer network to seven dealers, enhancing sales and service coverage across various U.S. regions. Furthermore, the company's Tunica manufacturing center has been granted Foreign Trade Zone status, offering benefits such as duty deferment and elimination on exported vehicles.
The reported financials are preliminary estimates and have not been audited or reviewed by an independent accounting firm. They may differ materially upon completion of standard financial closing procedures. The information presented is based on a press release statement and should be considered with the understanding that it is not a substitute for full financial statements.
Investors are cautioned that forward-looking statements involve risks and uncertainties, including the success of cost-cutting initiatives and market conditions affecting the selling prices of Mullen vehicles. The company's future financial performance may be affected by various factors, including government incentives for electric vehicles and consumer behavior.
In other recent news, Mullen Automotive has made significant strides in its operations. The company recently issued convertible notes and warrants, raising approximately $12.5 million. Concurrently, Mullen Automotive secured a $3.2 million purchase order from Papé Kenworth for a fleet of commercial electric vehicles, marking a significant expansion in its market reach.
The company has also transitioned from pre-revenue product development to revenue generation, securing substantial orders domestically and internationally, including a $210 million order from Volt Mobility. Mullen Automotive has begun its EV deliveries in the UAE as part of this contract.
In addition to these developments, Mullen Automotive expanded its dealer network and commenced production of commercial electric vehicles, including the Bollinger B4 electric truck, produced by its subsidiary Bollinger Motors. The Bollinger B4 Chassis Cab has been priced at $158,758, with customer deliveries expected to begin in October 2024.
Mullen Automotive also expanded its employee equity incentive program and initiated a 1-for-100 reverse stock split. These are the recent developments in Mullen Automotive's operations.
InvestingPro Insights
While Mullen Automotive Inc. (NASDAQ:MULN) reports a significant revenue increase and efforts to reduce its cash burn rate, recent InvestingPro data paints a more nuanced picture of the company's financial health. As of the last twelve months ending Q3 2024, Mullen's revenue stood at just $0.16 million, with a concerning revenue growth decline of -49.17%. This stark contrast to the projected $4.5 million for the quarter ended September 30, 2024, underscores the volatility and rapid changes in the company's financial landscape.
InvestingPro Tips highlight some critical challenges facing Mullen. The company is "quickly burning through cash" and "may have trouble making interest payments on debt." These insights align with the article's mention of Mullen's ongoing efforts to reduce its monthly cash burn rate and seek additional funding through investors and equity lines.
Moreover, the stock's performance has been notably poor, with InvestingPro data showing a 1-year price total return of -99.93% as of the most recent data point. This aligns with another InvestingPro Tip stating that the "price has fallen significantly over the last year."
It's worth noting that InvestingPro offers 18 additional tips for Mullen Automotive, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects and challenges.
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