Mullen Automotive ends agreement with Volt Mobility

Published 20/03/2025, 22:56
Mullen Automotive ends agreement with Volt Mobility

In a recent move, Mullen Automotive Inc. (NASDAQ:MULN) has terminated a material definitive agreement with Volt Mobility Holding Ltd., as disclosed in an 8-K filing with the Securities and Exchange Commission. The termination notice, sent on March 14, 2025, ends a Purchase Agreement originally signed on August 23, 2024, and the subsequent amendment on November 4, 2024, which had assigned the agreement to Lessor Car Rental LLC. According to InvestingPro data, Mullen faces significant financial challenges with a current ratio of 0.24, indicating potential difficulties meeting short-term obligations.

The Purchase Agreement was significant as it involved Volt Mobility’s assignor agreeing to purchase Mullen’s commercial electric vehicles (EVs) at preferred wholesale pricing. These EVs were intended for distribution in the United Arab Emirates region, with Volt Mobility acting as the exclusive representative.

The termination of this agreement marks a change in Mullen Automotive’s business strategy, although the reasons for this decision have not been disclosed in the filing. The company, headquartered in Brea, California, is known for its involvement in the motor vehicles and passenger car bodies industry under the SIC code 3711.

This development could be of interest to investors and market watchers of Mullen Automotive, as it may affect the company’s distribution plans and presence in the Middle East market. As of now, the company has not provided any further details regarding the termination or its future plans for the region.

This report is based on the latest 8-K filing by Mullen Automotive Inc. with the SEC and provides the known facts regarding the termination of the agreement with Volt Mobility.

In other recent news, Mullen Automotive Inc. announced significant updates to its corporate structure and incentive programs, including an expansion of its equity incentive plan and amendments to the CEO’s performance stock award agreements. These changes, approved by stockholders, aim to align CEO David Michery’s incentives with the company’s long-term goals. In another development, Mullen Automotive faces a potential delisting from the Nasdaq Capital Market due to its Market Value of Listed Securities falling below the required threshold. The company has until August 25, 2025, to regain compliance by meeting the Nasdaq’s listing standards. Additionally, Mullen Automotive has successfully deployed its Mullen ONE EV cargo van to Orange County, North Carolina, as part of the county’s Climate Action (WA:ACT) Plan. This deployment is facilitated through a Sourcewell contract, which simplifies the procurement process for government agencies. In a strategic move, Mullen Automotive has partnered with EO Charging to provide comprehensive electrification solutions for Bollinger Motors’ commercial fleet customers. This partnership will support fleet managers in transitioning to electric vehicles with reliable charging infrastructure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.