Mullen Automotive has changed directions– focusing on the commercial vehicle market and no longer supporting the Mulle FIVE SUV and reducing $5.5 million in spending.
Mullen Automotive announced a strong forecast of $75 million in estimated GAAP revenue over the next six months. The Company will immediately reduce $5.5 million in overall spend (operating and investing cash flows), from $12.8 million to $7.3 million. The Company will reduce overall spend by executing a 20% reduction in headcount, elimination of passenger vehicle programs, and facility consolidations. Mullen continues to focus on overall near term commercial revenue generation while streamlining operational efficiencies. Revenue and associated gross margin growth will further reduce cash requirements.
In recent months, the Company has conducted over 80 vehicle demos or pilots across various industries in the U.S., resulting in important commercial sales progress. Over the next six months, the Company expects to ramp up to $12.5 million average per month in revenue, for a total of $75 million in GAAP revenue from both Mullen Commercial and Bollinger Motors sales opportunities.
The Company is taking immediate steps to reduce operating expenses and overall monthly expenses from over $12.8 million per month to $7.3 million per month for a $5.5 million reduction in expenses. The Company has made these significant cuts through the following reductions:
- 20% reduction in headcount across Mullen operations
- Elimination of Mullen FIVE passenger vehicle program
- Facility consolidations through termination of property leases and subleasing of non-critical property
“As Bollinger focuses on B4 ramp up production volume and Mullen’s commercial vehicle sales momentum continues, I remain confident that through continued focus on revenue growth and expense reduction our near term cash flow will continue to improve,” said David Michery, CEO and chairman of Mullen Automotive.
On October 3, Bollinger Motors, announced the first customer delivery of its 2025 Bollinger B4 Chassis Cab. Bollinger Motors delivered five Bollinger B4s to Nacarato Truck Centers LaVergne, Tennessee facility – generating revenue for the OEM based off a sales value of nearly $800,000.
Nacarato Truck Centers will sell four vehicles to commercial fleet customers and will use one vehicle for its own internal parts deliveries between its 13 locations throughout the East, Southeast and Midwest.
“This is another special day for Bollinger Motors as we continue our journey to become an electrification leader in the commercial fleet market,” said Jim Connelly, chief revenue officer for Bollinger Motors. “Our nationwide dealership network is one of our core strengths and with partners like Nacarato Truck Centers, our customers’ sales and service needs are in good hands. We are excited to see the B4 going to work on the streets of the Nashville area, and across the country.”
The Bollinger B4 Chassis Cab is an all-new, all-electric Class 4 commercial truck designed from the ground up with extensive fleet and upfitter input. Bollinger’s unique chassis design protects the 158-kwh battery pack and components to offer unparalleled capability and safety in the commercial market.
“Nacarato Truck Centers is thrilled to be the first dealership in the nation to receive Bollinger B4 all-electric trucks,” said Sawyer Sparks, Bollinger Sales and Brand Manager for Nacarato Trucks. “This is a monumental moment not just for our company, but for the advancement of Tennessee clean fuels, as well.”
The 2025 Bollinger B4 Chassis Cab has a Manufacturers Suggested Retail Price (MSRP) of $158,758. In addition, Bollinger Motors qualified for federal clean vehicle tax credits under the Inflation Reduction Act of $40,000 per vehicle for the B4 chassis cab.
Bollinger Motors has passed numerous milestones in the past several months including its production launch on Sept. 16, CARB certification, FMVSS compliance, receiving the Certificate of Conformity from the Environmental Protection Agency: a 145-vehicle sale to Momentum Group; a 70-vehicle sale to Doering Fleet Management; a 50-vehicle sale to EnviroCharge; the addition of TEC Equipment, Affinity Truck Center, Nacarato Truck Centers, Nuss Truck & Equipment, and LaFontaine Automotive Group as dealers and service centers; Our Next Energy in Novi, Mich. to supply battery packs; providing a full warranty coverage of the B4 chassis cab; Syncron as its warranty administration partner; and Amerit Fleet Solutions as its mobile service provider.
Mullen announced a video update for shareholders released today and provided by Mullen CEO and chairman, David Michery. The video was released on Tuesday, Sept. 24, 2024, at 9 a.m. ET, and is available to view here on Mullen’s official YouTube channel and MullenUSA.com.
In the video, Michery reiterates that the Company was compelled to do another reverse split to work towards regaining compliance with NASDAQ’s minimum bid price rule and the Company’s current stock price does not represent the value of Mullen. He provides a detailed overview of Mullen’s recent progress, including:
Sales and Distribution Expansion:
- Expanded dealer network in the U.S. to seven renowned dealers nationwide, including recently announced Papé Group, one of the largest commercial dealer groups in the country with major presence across the West Coast
- Conducted over 80 vehicle demos or pilots across various industries in the U.S. resulting in significant progress, including new sales opportunities and vehicle orders received and or completed:
- Universities: Princeton University, University of Virginia (UVA), University of California, Los Angeles (UCLA)
- Local city governments: Cities of Dublin, Ohio, Raleigh, North Carolina, Los Angeles, California, and Seattle, Washington
- Small businesses: From local florist shops to health care providers delivering supplies
- Large corporations: Major airport service company, roadside assistance, vehicle rental company and last-mile package delivery companies
- Expanded international reach with established retailers and orders in Eastern Europe and the Middle East.
- Volt Mobility order for $210M with Mullen to deliver 300 vehicles this calendar year and with 3,000 planned for calendar year 2025
- Mullen 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 to support initial market launch activities
Bollinger Motors Progress:
- Completed all necessary engineering and testing to pass compliance regulation, including EPA and CARB approvals, and obtained sales approval in all U.S. states with qualification for significant incentives
- Partnering with Roush Industries, with manufacturing plant in the greater Detroit area, to produce the Bollinger B4 electric truck in Michigan
- Reached an important milestone with production beginning Sept. 20, 2024, on the first customer-ready B4 electric trucks
Financial Performance:
- Successfully transitioned from pre-revenue product development to revenue generation for Mullen Commercial EVs
- Bollinger begins revenue generation with the launch of Class 4 fully certified electric truck
- Reduced cash burn through strategic product focus and efficiency improvements of operations
- Company financing in place to support sales growth through a $100M preferred instrument and $150M fully available equity line
- Three vehicle lines are currently in production and generating positive margins from sales, with widespread demand for Mullen EVs from several different customer verticals
“Our group of companies, including Bollinger Motors and Mullen Advanced Energy Operations, continue to work towards meeting milestones and growing sales and I remain optimistic that the Company success will continue despite the challenges associated with our stock price,” said David Michery, CEO and chairman of Mullen Automotive.