Shares of Mullen Automotive (NASDAQ:MULN) stock hit a 52-week low of 19 cents today, as there is still no word on whether DelPack Logistics (DPL) has requested 300 Class 2 cargo vans. In July, the two companies signed a binding agreement for DPL to purchase up to 600 vans over the next 18 months. The first 300 vans could be delivered as soon as Nov. 30 “at the request” of DPL. DelPack is an Amazon (NASDAQ:AMZN) logistics partner that serves shipping areas in Indiana.
At the time, CEO David Michery said:
“This agreement is a milestone for Mullen Automotive. DelPack is a leader in last mile package delivery and this agreement puts our Class 1 cargo van program front and center for last mile delivery opportunities.”
The vans have a range of at least 200 miles with a maximum payload of 3,296 lbs. They are also equipped with a 78.8 kWh battery with a cargo capacity of 420 cubic feet.
Now, Nov. 30 is just two days away and there is still no word on the potential 300 van order.
MULN Stock Falls Lower on DelPack Order Silence
Investors have become somewhat used to the hopeful arrangements issued by Mullen’s management. In March, Michery teased that the identity of a “major, major Fortune 500 company” would be announced in the second quarter. That customer had supposedly made an order for Mullen’s cargo vans. Well, it’s now the third quarter and there is still no announcement to be made.
That’s led some investors to question the capability of Mullen’s vans. While the DPL deadline is still two days away, it’s possible that both DPL and the Fortune 500 customer found flaws in the vans upon further inspection, which influenced them to delay their orders.
Meanwhile, the electric vehicle (EV) company has other problems on its plate. Shares are currently miles away from the $1 minimum bid requirement price to stay listed on the Nasdaq and to be included in the Russell 2000 and 3000 indices. Mullen has until March 6 to regain compliance with the Nasdaq and until the rank day in May to regain compliance with the Russell indices.
The deficiency has caused Mullen to release a proposal for a reverse stock split in a ratio between 1-for-2 and 1-for-25. The proposal will be voted on at Mullen’s special meeting of stockholders on Dec. 23.
On the date of publication, Eddie Pan held a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.