MULN stock slides ahead of next week's shareholder meeting

Mullen stock has lost 22.1% over the past month, 4.7% over past five sessions.
New agreement announced with Shoshoni Native American Tribe.
Majority-owned Bollinger Motors receives $3 million grant from Michigan.
Market awaits August 3 shareholder meeting for further news.

Mullen Automotive (MULN) stock is around 5.0% lower on Friday, trading in the $0.1190s. The stock has continued to cycle lower this week as investors wait for the outcome of the electric vehicle (EV) maker’s next shareholder meeting, scheduled for next Thursday, August 3.

Mullen CEO David Michery has already stated that shareholders will vote on a reverse stock split in a wide range between 1-for-2 and 1-for-100. The MULN share price has languished for much of the year below the $1 value that the NASDAQ exchange requires listing companies to retain despite having already instituted a reverse stock split at a 1-for-25 ratio back in May.

Mullen stock news: Bollinger receives Michigan grant

Bollinger Motors, an EV development-stage company that Mullen owns a majority stake in, announced a $3 million grant from the state of Michigan on Wednesday. The grant will be dispatched upon Bollinger reaching several milestones in job creation.

“Bollinger Motors is poised for growth and we’re proud to be focused on expanding our company’s operations as we approach start-of-production,” said Bollinger’s founder and CEO, Robert Bollinger.

Bollinger recently made headlines when it began pilot production on its all-electric, class-4 chassis cab. Named the B4, it can carry a payload of 7,080 lbs and has a battery range of 185 miles. The semi-trailer truck will compete directly with the Mullen Three model, potentially making Mullen one of the leading producers of electric commercial vehicles in the semi truck category. Bollinger plans to complete production of 20 units by the end of the third quarter.

Tesla (TSLA) is already underway with limited production of its own Tesla Semi model. The battery pack surpasses both the Mullen and Bollinger models with an expected range of 500 miles. At the moment, the Tesla Semi is being tested by Pepsi (PEP).

In other news, Mullen has entered into another pilot program with the Shoshoni Native American Tribe of Northern California, which will begin testing the Mullen One cargo van and its Mullen CAMPUS delivery vehicle at the Harrah’s Northern California Resort & Casino property. This is just one of a number of recent pilot programs in which organizations can test Mullen vehicles before making purchases.

“Our tribe’s vision to transition to electric-powered vehicles and sustain green initiatives is in line with the National EV Initiative for Tribal Nations,” said Chief William Bills, the CEO and president of the Shoshoni tribe.

Mullen Automotive FAQs

What is Mullen Automotive?

Mullen Automotive is a publicly-traded development-stage electric vehicle company based in Brea, California that typically uses outside partnerships to manufacture its vehicles. The company was founded in 2014 and currently sells self-designed electric delivery vehicles. Besides its commercial offerings, Mullen plans to begin manufacturing its Mullen FIVE EV crossover in late 2024 or early 2025. Mullen Automotive went public on the NASDAQ exchange through a reverse merger in late 2021.

Who is the team behind Mullen Automotive?

David Michery has been the company’s CEO since he founded and incorporated the company in 2014. The existing company came from the merging of CODA Automotive and Mullen Motor Cars through acquisition. Michery is joined by Chief Financial Officer Jonathan New, Chief Commercial Officer John Schwegman and President of the Automotive Division Calin Popa.

What vehicles does Mullen Automotive currently offer?

Through a partnership with Randy Marion Automotive Group, Mullen distributes its Mullen One delivery van that has an electric range of 110 miles. Through an agreement with a Chinese manufacturer and distributor based in Ireland, the company also distributes the Mullen-GO Commercial Urban Delivery EV in Europe. In July 2023, Mullen will begin commercial production at its facility in Mississippi of its Class 3 EV Cab Chassis long-haul truck for immediate delivery. Through its 60% ownership stake in Bollinger Motors, Mullen will also reap the benefits of that company’s B1 SUV and B2 pickup truck, as well as other commercial vehicles in the future. The Mullen FIVE crossover vehicle is not slated for production until at least late 2024, but it is already taking reservations.

Why does MULN stock trade for such a low share price?

Mullen has been diluting its stock since going public in late 2021. This is because the company as of yet currently has little revenue from operations and no profits. The stock has fallen over 99% since the company’s reverse merger in November 2021, and the rapid dilution is mostly to blame. Taking into account Mullen’s 1-for-25 reverse stock split on May 4, 2023, Mullen had 33,338,727 shares outstanding on September 30, 2022, but 126,281,274 shares on March 31, 2023. The company is allowed to sell up to 200 million shares under current authorization.

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