Mullen Automotive Inc., a troubled maker of electric trucks and cargo vans, is stalling again in its efforts to get out of the starting gate.
In October, the Brea-based company made bold promises that it would record $75 million in sales for the six-month period ending March 31.
At the halfway point, it reported $2.9 million in sales for its fiscal first quarter that ended Dec. 31, 2024.
Chairman and Chief Executive David Michery said it was “our strongest quarter to date,” praising its Bollinger unit.
“Bollinger is now moving with speed and attaining solid commercial sales results,” he said. “Mullen Commercial also has solid momentum and continues to build on Class 1 and 3 sales opportunities across the U.S. We’ve recently reduced our expenses even further and are continuing our focus on growing our sales and customer base across America.”
However, the Brea-based company gave no guidance update on its October forecast. The shares collapsed 48% in the two trading sessions after the report to a $5.6 million market cap. The shares have dropped about 99% in the past six months (Nasdaq: MULN).
The company has undergone several reverse share splits in recent years to keep its stock above $1 to comply with Nasdaq requirements. Its most recent reverse split was 1-for-60 on Feb. 18.
In an odd twist given the Trump Administration’s focus on reducing expenditures, Mullen is hoping to receive subsidies from the government.
Mullen in December submitted a modified plan to the U.S. Department of Energy that incorporates its facilities in Fullerton and Mishawaka, Indiana, for U.S.-based battery and pack production. In total, Mullen is seeking $55 million in matching DOE funds to support the U.S. manufacturing capabilities.
In November, its Bollinger B4 vehicle became eligible for New York State’s New York Truck Voucher Incentive Program, an incentive for commercial electric vehicles from the New York State Energy and Research Development Authority providing up to a $100,000 cash voucher incentive on the all-electric B4 truck.
The company, which burned through $27.8 million in the most recent quarter, had $2.7 million in cash as of Dec. 31. It said it’s received $8.8 million during the quarter by issuing senior secured convertible notes and warrants. The working capital was a negative $186.2 million.
A $75M Promise
In October, Mullen made unusual claims to Wall Street.
It promised GAAP revenue of $75 million by the end of March, citing “sales programs and pilot programs.” At the same time, it said it’d cut spending by executing a 20% reduction in headcount across its operations, eliminating the program for its only passenger vehicle and consolidating company facilities via lease terminations and subleasing.
At that time, the company had an estimated 300-plus employees at Mullen’s headquarters in Brea and its two U.S. vehicle plants. One is in Tunica, Mississippi, running 120,000 square feet, with another in Mishawaka, Indiana, spanning 650,000 square feet.
The EV-maker claimed it would ramp up to a $12.5 million average per month in revenue to reach its $75 million goal.
While first quarter sales of $2.9 million were a record amount for the company, it was a bit different from a traditional income statement.
The company said it invoiced 58 vehicles valued at $4.4 million, received $6 million in cash and recorded $2.9 million in revenues.
“The difference between invoiced amounts and revenues was due to the company continuing to defer the revenue recognition on most of Mullen commercial vehicles invoiced until invoices are paid and the return provision on the vehicles is nullified by dealer’s sale of the vehicle to the end user,” the first quarter statement said.
As of Feb. 1, the company said it has trimmed costs by $13 million annually with headcount reductions.
The quarterly net loss attributable to common shareholders after preferred dividends widened to $114.9 million, or $661 per share, compared to $61.4 million, or $91,940 loss per share, for the same period a year earlier. The high loss per share is because of the reverse stock split.
A $10M Bright Spot
The company’s brightest spot is Bollinger Motors unit, which provided the bulk of its quarterly sales – $2.8 million.
Bollinger Motors, based in Oak Park, Michigan, delivered 20 B4 trucks.
On Thursday, Feb. 20, the company said it is partnering with EO Charging, a provider of EV charging solutions for depot-based fleets. EO will provide comprehensive electrification solutions for Bollinger Motors’ commercial fleet customers, the company said.
“Electrifying a commercial fleet can feel like a daunting challenge, with many unknowns in infrastructure, scalability and cost. Our partnership with EO Charging eliminates those uncertainties by giving fleet managers access to the expertise, equipment and end-to-end solutions needed to make electrification seamless and efficient,” Jim Connelly, chief revenue officer of Bollinger Motors, said in a Feb. 20 statement. “By combining the Bollinger B4 with EO Charging’s proven infrastructure, we’re ensuring businesses of any size can transition with confidence, knowing they have the support of industry leaders trusted by global brands like DHL, Amazon, UPS and Microsoft.”
A sign of Mullen’s distress was that Robert Bollinger, founder of Bollinger Motors, provided Bollinger with $10 million in non-dilutive long-term debt financing to support Bollinger’s production ramp-up and sale of the B4 truck.
Mullen’s unusual first quarter statement included individual sales:
• Mr. Appliance of Owings Mills, Maryland, purchased the Mullen ONE EV cargo van, marking the company’s first venture into the home services vertical.
• Westland Floral purchased the Mullen THREE, Class 3 EV trucks for the floral and nursery vertical.
• Associated Coffee, a San Francisco Bay-area coffee distributor, purchased the Mullen THREE, Class 3 EV trucks for local coffee and snack deliveries.
• Two unidentified California universities in Los Angeles and the San Francisco Bay area placed Class 1 EV cargo van orders.
