An Exciting Update from Mullen Automotive on Customs and Border Ruling

Mullen Automotive, a renowned company in the electric vehicle industry, has recently issued an update regarding its Ruling Request Application with the U.S. Customs and Border Protection (CBP). This update has garnered significant attention among investors, and there is a high level of anticipation surrounding the final decision.

The company’s collaboration with Rapid Response Defense Systems (RRDS) in March 2023 has played a pivotal role in paving the way for U.S. government vehicle fleet orders. RRDS has executed over 2,500 federal government orders since 2014, establishing itself as a valuable ally for Mullen. Furthermore, in November, Mullen submitted responses for final ruling and compliance to the CBP in connection with its Class 1 EV cargo van, the ONE. A positive outcome from the CBP would enable Mullen to distribute its ONE to all branches of the U.S. government. While a response from the CBP was initially expected within 45 days, the waiting period has been extended.

A communication from the CBP on Feb. 20 indicated that Mullen should anticipate a final determination for its application within one to two months. Typically, applications are reviewed within 45 to 90 days, but the current timeline may be prolonged due to the agency’s caseload. The extended waiting period has led to speculation about the U.S. government’s interest in the ONE.

In the fourth quarter, Mullen delivered 100 ONEs to Randy Marion Automotive Group (RMA), and an additional 130 ONEs were delivered in January. However, Mullen reported $0 in revenue during Q4 and January due to its return provision with RMA. It appears that Mullen is still refining its sales model, and only time will reveal whether RMA will be successful in selling the ONEs to customers.

In light of this update, investors should approach investing in Mullen with caution. Generally, low-volume stocks and those with a market cap of less than $100 million can pose risks for investors. It is imperative for investors to undertake comprehensive research and grasp the implications of investing in such companies. This is particularly relevant in light of the uncertainty surrounding Mullen’s customs and border ruling, which could significantly impact the company’s future prospects.

Ultimately, while Mullen’s partnership with RRDS and its potential to distribute its ONE to the U.S. government present promising developments, investors should carefully weigh the risks associated with investing in Mullen at this juncture.

The unfolding developments for Mullen in the coming months will be of great interest. A positive ruling from the CBP could be a transformative moment for the company, but until then, it is essential for investors to exercise caution and discretion when considering Mullen as an investment opportunity.