Mullen Automotive, Inc. (NASDAQ: MULN) experienced a significant boost in pre-market trading hours on Thursday, with shares soaring 7.46%. The surge comes after the company issued a letter to shareholders, addressing concerns about the recent decrease in share price.
In the letter, Mullen Automotive acknowledged that its stock has declined by 90% since March 31, 2023, dropping from $3.25 per share to $0.32 per share on June 13, 2023. However, despite this decline, the company remains confident in achieving its previously announced objectives, specifically regarding the production and sale of Class 3 commercial vehicles by the end of September 2023.
As of March 31, 2023, Mullen Automotive reported $86.7 million in available cash for operations, amounting to $0.68 per share. The company’s book value per share stood at $2.08 on the same date.
Furthermore, Mullen Automotive expanded its assets through two strategic acquisitions. On September 7, 2022, the company acquired a majority stake in Bollinger Motors, an EV truck company. This acquisition included the B1 and B2 electric SUV and pickup trucks, as well as Class 4-6 commercial cab chassis trucks. Bollinger plans to launch customer pilots by the end of December 2023, with sales starting in June 2024.
In another acquisition on December 1, 2022, Mullen purchased certain assets of Electric Last Mile Solutions (ELMS). This acquisition included intellectual property and a manufacturing plant in Mishawaka, Indiana. The company intends to produce the Mullen FIVE EV Crossover and Bollinger B1 and B2 SUVs and trucks at this facility.
Mullen Automotive also highlighted its Tunica assembly facility in Mississippi, which has over 120,000 square feet of manufacturing space. The facility is undergoing equipment installation to support the production of Mullen’s commercial Class 3 vehicles by the end of September 2023.
With a strong focus on innovation, Mullen Automotive has filed over 200 U.S. and international patent applications related to vehicle design, technology, safety, and convenience features. To date, the company has been granted 90 patents to support its Mullen FIVE consumer vehicle program.
Furthermore, Mullen Automotive has received purchase orders totaling $279 million from Randy Marion Automotive Group for Mullen Class 1 and Class 3 EV vans and trucks. Randy Marion Automotive Group, a prominent commercial vehicle dealer group based in North Carolina, has shown significant interest in Mullen’s electric vehicles.