Mullen Automotive Inc. (MULN) Update: Abandoned Sale of Mullen FIVE and Bollinger B4 Models - Expected Price Reductions
Mullen Automotive, now rebranded as Bollinger Innovations Inc., has changed directions and is now concentrating on the production and sales of the next generation of commercial electric vehicles (EVs). The company's new focus includes Class 1, 3, and 4 EVs under one unified brand.
The shift in strategy has seen Mullen (Bollinger) make significant progress in the commercial EV market. One of the key milestones is the securing of partnerships with suppliers and engineering firms for EV powertrain and manufacturing components. Companies such as Hofer Powertrain, Comau, ARRK, Dürr, and DSA Systems have been enlisted to support this endeavour.
Another significant development is the acquisition of Electric Last Mile Solutions’ assets, which includes a 650,000-square-foot manufacturing plant in Mishawaka, Indiana. This acquisition expands Bollinger Innovations' ability to produce commercial EVs domestically.
The company has also filed with U.S. Customs and Border Protection for eligibility to sell Class 1 EV cargo vans to all branches of the U.S. government. A ruling on this matter is expected in early 2024, and if favourable, it will open up significant commercial opportunities for government fleet sales.
To better position itself in the commercial EV market, Bollinger Innovations has transitioned its company branding to focus on commercial EVs, consolidating Class 1, 3, and 4 vehicles under the Bollinger name.
However, the company has faced financial and operational challenges, including executive leadership controversies and overstatements about technology readiness and partnerships. These issues have affected investor confidence and stock performance.
Despite these challenges, Bollinger Innovations is forging ahead with its commercial market pivot. The company expects to ramp up to an average of $12.5 million per month in revenue, totaling $75 million over the next six months. This revenue generation began with the launch of the Class 4 fully certified electric truck.
In a related development, Bollinger Motors, a subsidiary of Bollinger Innovations, delivered five Bollinger B4s to Nacarato Truck Centers, generating nearly $800,000 in revenue. Nacarato Truck Centers, the first dealership in the nation to receive Bollinger B4 all-electric trucks, will sell four of these vehicles to commercial fleet customers and use one for internal parts deliveries.
The Bollinger B4 Chassis Cab, an all-new, all-electric Class 4 commercial truck, boasts a unique chassis design that protects its 158-kwh battery pack and components, offering unparalleled capability and safety in the commercial market. The Manufacturers Suggested Retail Price (MSRP) of the Bollinger B4 Chassis Cab is $158,758.
Meanwhile, Mullen Automotive has reduced its spend by $5.5 million, from $12.8 million to $7.3 million, through a 20% reduction in headcount, elimination of passenger vehicle programs, and facility consolidations.
Mullen Automotive has also made significant strides in its partnerships. The company reached an agreement with Volt Mobility to deliver 300 vehicles this calendar year and 3,000 vehicles in calendar year 2025, with a total value of $210 million. Mullen Automotive's vehicle technicians and sales team members were on the ground in Dubai, UAE starting Sep. 18, 2024, delivering Volt's first Mullen Commercial EVs and supporting initial market launch activities.
Mullen Automotive expanded its dealer network in the U.S. to seven renowned dealers nationwide, including Papé Group, one of the largest commercial dealer groups in the country with a major presence across the West Coast. This expansion is expected to boost sales and distribution of their commercial EVs.
In a statement, Mullen Automotive's CEO and chairman, David Michery, reiterated that the company was compelled to do another reverse split to work towards regaining compliance with NASDAQ's minimum bid price rule and expressed optimism about the company's success despite challenges associated with its stock price.
As Bollinger Innovations continues to build the next generation of commercial electric vehicles, it remains to be seen how these developments will impact the company's future in the competitive EV market.
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