Shares of Mullen Automotive (MULN) have seen a dip in value today following the announcement of the delivery of 50 ONE Class 1 electric vehicle (EV) cargo vans to Randy Marion Automotive Group (RMA). The total invoice for the delivery was $1.68 million, as part of a larger $200 million purchase order for 6,000 ONEs. This brings the total number of ONEs delivered to RMA to 100, with invoices totaling $3.36 million. An important point of consideration arising from this delivery is the timeline for Mullen to collect the invoice. The company foresees delivering 285 ONEs by Jan. 8.
The CEO of Mullen, David Michery, declared, “We closed 2023 with a focus on delivering Class 1 and Class 3 vehicles and are now increasing production in order to meet the demands for 2024 from our existing and potential customers.”
In spite of the ONE’s 110-mile range, Mullen is actively seeking a solution to extend this range. The company announced at the end of December the successful integration of the solid-state polymer (SSP) cell to pack for the ONE. According to Mullen, the current LFP range of 110 miles is expected to increase to over 190 SSP miles, providing a 73% increase and a substantial improvement over industry standards. Pack-level testing commenced on Dec. 28, and the on-vehicle road testing for the SSP pack is expected to begin this quarter.
In addition to the ONE, Mullen is also delivering its Class 3 vehicle, the THREE, to RMA. As of Dec. 26, 121 THREEs had been delivered to RMA, with an invoice totaling $7.62 million, as part of a $63 million purchase order for 1,000 THREEs. Mullen had originally aimed to deliver 150 THREEs to RMA by the end of 2023, but no updates have been provided since then. When at full capacity, Mullen’s Mississippi facility is expected to produce 3,000 THREEs annually per shift, with the vehicle having a range of 125 miles.
In mid-2023, Mullen’s CEO, David Michery, provided guidance for 2024, including 368 Class 1 one-seaters, 11,000 Class 1 two-seaters, and 3,000 Class 3 vehicles.
Regarding market capitalization and trading volume, InvestorPlace does not typically publish commentary about companies with a market cap of less than £100 million or trade less than 100,000 shares each day due to the potential risks associated with such “penny stocks.” Eddie Pan, the author of this article, does not hold any positions in the securities mentioned.
In conclusion, Mullen Automotive’s recent deliveries to Randy Marion Automotive Group mark a significant milestone for the company in fulfilling its commitments. The development of SSP technology for extending the range of its electric vehicles and the future production goals indicate a promising future for Mullen in the EV market.
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