Mullen Automotive, Inc. (MULN) saw its shares plummet on Monday, following the announcement of a $10 million non-dilutive debt financing deal with Bollinger Motors. This investment, provided by Robert Bollinger, the founder of the electric truck manufacturer, aims to bolster production and sales of the B4 Class 4 electric vehicle truck.
Bollinger Motors, which began full-scale production of its all-electric Class 4 truck, the Bollinger B4, in September, is assembling the trucks at Roush Industries in Livonia, Michigan. Over 70% of the truck’s components are made in the United States. David Michery, CEO and chairman of Mullen Automotive, stated that Bollinger’s continued support highlights his commitment to the brand.
This financing comes at a pivotal time for Mullen Automotive, as the company navigates a period of strategic adjustments. Earlier this month, the company revealed plans to achieve $75 million in GAAP revenue through commercial and Bollinger Motors sales, aiming for a monthly average of $12.5 million. To reach this goal, Mullen Automotive implemented a 20% headcount reduction and eliminated the Mullen FIVE program, resulting in a $5.5 million reduction in spending.
The company also established Mullen Credit Corporation (MCC) to support its growing dealership network by offering vehicle floor planning. This initiative aims to streamline financing for dealerships, facilitating the purchase and sale of electric vehicles.
The news of the Bollinger Motors financing, coupled with the company’s cost-cutting measures and revenue targets, has led to a significant decline in MULN stock price. Investors are closely watching how these strategies will impact the company’s financial performance and market position in the competitive electric vehicle industry.
