Shares of Mullen Automotive (NASDAQ:MULN) stock closed lower by 18% due to the company’s silence on the delivery status of its I-GO urban commercial electric delivery vehicle.
In November, Mullen announced that it would enter into a dealer agreement with Newgate Motor Group that would see Newgate purchase 500 vehicles per year and the initial units of the I-GO for testing and demonstration. The dealer agreement encompassed the terms in which Newgate would receive the first shipment of the I-GOs on Dec. 20. In addition, Mullen also said that the first I-GOs would be released in Germany during December.
The wording of the announcement was eye-catching, as Mullen stated that it “will also enter into a dealer agreement.” This may possibly suggest that Mullen had not yet entered into a dealer agreement with Newgate when the announcement was made.
Meanwhile, Newgate’s home page of its official website still displays a Mullen banner with a “Coming Soon” description. The dealership has over 40 years of experience in the automotive industry.
Still, the EV company has already entered into an agreement with Newgate that will see the dealership group become the servicing agent for the I-GO in the United Kingdom and Ireland. This means that Newgate will be in charge of sales, marketing, distribution, and service for the EV.
I-GO Delivery Silence Sends MULN Stock Lower
So, why exactly did Mullen miss its deadline? Certification doesn’t appear to be an issue, as Mullen noted that the I-GO is “EU standard homologated, certified, and ready for sale in initial markets of the U.K., Germany, Spain, France, and Ireland.”
Ultimately, it is up to Mullen to provide shareholders with a concrete reason. To be fair, there is still time left in the day for Mullen to announce a delivery. However, the company usually releases its press releases in the morning.
On a more positive note, the first leg of the Strikingly Different tour concluded today, selling out of all nine stops. CEO David Michery added:
“Every location sold out, and we received overwhelmingly positive feedback on the Mullen FIVE. I want to personally thank everyone who came out, often in not the best weather, to visit with us and experience the FIVE in person. Thank you all very much.”
The second leg of the tour will kick off during the Spring of 2023 with a focus on the East Coast, Northwest and Midwest.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.