Mullen Announces 100 Class 1 and Class 3 EV Shipments with Sales Totaling $5.5M Through Dec. 18, While Reducing Company Burn to $5.3M Monthly Compared to $16.8M in August 2024

Rhea-AI Summary

Mullen Automotive reports significant progress in EV sales and cost reduction through December 18, 2024. The company has delivered 100 electric vehicles (57 Class 3 and 43 Class 1 EV cargo vans and trucks) since September 30, generating $5.5 million in sales. Notably, Mullen has substantially reduced its monthly burn rate from $16.8M in August to $5.3M in October and November 2024.

The company's vehicles qualify for various incentives, including a $15,000 Massachusetts MOR-EV program incentive and a $45,000 California HVIP rebate for the Mullen THREE, plus a $7,500 federal tax incentive for both models. Mullen is actively engaging with government agencies, universities, and large fleets to expand EV adoption.

Positive

• Sales of 100 EVs totaling $5.5M since September 30, 2024
• Significant reduction in monthly burn rate from $16.8M to $5.3M (68% decrease)
• Vehicles qualify for substantial government incentives up to $45,000 per unit
• Growing sales momentum across multiple industries

Negative

• Monthly cash burn still substantial at $5.3M
• Sales figures exclude Bollinger Motors performance, providing incomplete picture of overall business

Insights

Financial Analyst

The reported $5.5M in EV sales and significant burn rate reduction from $16.8M to $5.3M monthly represent important operational improvements for Mullen. The 68.5% decrease in monthly cash burn demonstrates improved cost management, though sustainability remains a concern given the company's small market cap of $10.9M. The sale of 100 vehicles shows early market traction, but revenue generation needs substantial scaling to achieve profitability. The available government incentives ($7,500 federal tax credit, up to $45,000 HVIP rebate) could help drive adoption, but the company's extremely low market capitalization raises serious concerns about long-term viability and funding capacity.

Market Research Analyst

The commercial EV market penetration strategy shows promise with diversified customer targeting across government agencies, universities and commercial fleets. The mix of 57 Class 3 and 43 Class 1 vehicles indicates balanced market demand across vehicle categories. However, the $55,000 average revenue per vehicle suggests thin margins when considering manufacturing costs and operational expenses. While the substantial incentives available could accelerate adoption, the current sales volume remains modest relative to the overall commercial vehicle market. The company's ability to scale production and sales while maintaining reduced operational costs will be important for sustainable growth.

Company has reduced monthly burn from $16.8M in August 2024 to $11.8M in September 2024 and to $5.3M in October and November 2024

Since Sept. 30, 2024, Mullen has sold and delivered 57 Class 3 and 43 Class 1 EV cargo vans and trucks for a total of 100 vehicles and $ 5.5 million; these numbers exclude sales and expenses by Bollinger Motors

Orders continue to build as Mullen moves forward efforts with government agencies, universities and large fleets to expand adoption of EV vehicles across America and abroad

BREA, Calif., Dec. 18, 2024 (GLOBE NEWSWIRE) -- via IBN – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today a commercial vehicle sales update since Sept. 30, 2024, with a total of 100 Class 1 and Class 3 EV cargo vans and trucks sold for sales totaling $5.5 million. The Company has also significantly reduced its monthly burn from $16.8 million in August 2024 to $11.8 million in September 2024 and to $5.3 million in October and November 2024.

The growing demand for sustainable commercial transportation solutions is driving significant sales momentum for Mullen Commercial electric vehicles across multiple industries. Mullen is in continued discussions with government agencies, universities and large fleets to expand adoption of EV vehicles across America. The total of 100 all-electric vehicles sold since Sept. 30, 2024, includes 57 Class 3 and 43 Class 1 EV cargo vans and trucks.

“We are working diligently to expand our efforts both domestically and internationally and being considerate of current market conditions on a global level, while managing the risk and expectations of placing our products in different use case scenarios,” said David Michery, CEO and chairman of Mullen Automotive. “Our sales continue to grow as we build positive traction step by step for both Mullen and Bollinger Motors.”

Mullen’s commercial EV lineup includes the Mullen ONE, Class 1 EV cargo van, and the Mullen THREE, Class 3 EV cab chassis truck, purpose-built to meet the demands of urban last-mile applications. Both vehicles are available for sale and in full compliance with U.S. Federal Motor Vehicle Safety Standards, the Environmental Protection Agency, and the California Air Resources Board (“CARB”) certifications denoting strict adherence to clean air emissions standards.

The Mullen THREE qualifies for a $15,000 incentive through the State of Massachusetts MOR-EV program and a $45,000 cash rebate voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program (HVIP). The Mullen ONE is also eligible for a $3,500 MOR-EV incentive in Massachusetts.  Both vehicles also qualify for a $7,500 federal tax incentive.

About Mullen

Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. Recently, CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network to seven dealers, which includes Papé Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key West Coast, Midwest, Pacific Northwest, New England and Mid-Atlantic markets.

To learn more about the Company, visit www.MullenUSA.com.

Mullen Forward-Looking Statements

Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, the Company’s prospects of future orders and sales and how long local and federal governmental incentives for electric vehicles will be available. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date.

Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

FAQ

How many vehicles has MULN delivered since September 30, 2024?

Mullen has delivered 100 electric vehicles since September 30, 2024, consisting of 57 Class 3 and 43 Class 1 EV cargo vans and trucks.

What is MULN's current monthly burn rate as of December 2024?

Mullen's monthly burn rate has decreased to $5.3M in October and November 2024, down from $16.8M in August 2024.

How much revenue did MULN generate from EV sales through December 18, 2024?

Mullen generated $5.5 million in sales revenue through December 18, 2024, from the delivery of 100 electric vehicles.

What government incentives are available for MULN's electric vehicles?

The Mullen THREE qualifies for a $15,000 Massachusetts MOR-EV incentive and a $45,000 California HVIP rebate, while both models qualify for a $7,500 federal tax incentive.

How has MULN's monthly burn rate changed since August 2024?

MULN's monthly burn rate decreased from $16.8M in August to $11.8M in September, and further down to $5.3M in October and November 2024.