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Mullen releases statement claiming to be on track for deliveries; Shares remain near 52-week low

Published 03/16/2023, 03:04 PM
Updated 03/16/2023, 03:08 PM
© Reuters.  Mullen (MULN) releases statement claiming to be on track for deliveries; shares remain near 52-week low

By Michael Elkins

Mullen Automotive Inc (NASDAQ:MULN) CEO David Michery released a statement on Thursday addressing recent investor concerns. The company’s stock is down by over 50% year-to-date.

However, Michery assured investors that the automaker is set to fulfill its Class 1 EV deliveries, including an order made late last year by Randy Marion Isuzu for 6,000 Class 1 EV Cargo Vans. A transaction valued at approximately $200 million. At the time, Mullen stated that deliveries would begin during Q1 of 2023. The exact timeline for the entirety of the deliveries was not disclosed. The statement released Thursday says that the company anticipates making the Class 1 EV deliveries before the end of March.

“I believe we have all the pieces in place between our product, factories and strategic expertise to execute on our plans to deliver our Class 1 and Class 3 vehicles this year,” said David Michery, CEO and chairman of Mullen Automotive. “Furthermore, we continue to invest and move at a fast clip with the Mullen FIVE program, which will soon be approaching vehicle engineering freeze, allowing us to move into the next phase of the crossover program.”

By June 1, Mullen plans to receive another $110 million in firm commitments. Based on the current cash balance and the expected receipt of $110 million, the company estimates it will have enough cash to operate the business over the next 12 months.

Despite the statement, company shares are still sitting near a 52-week low of $0.14.

Shares of MULN are up 0.47% near end of day trading on Thursday.

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