“Cash obtained from customer deposits is held by the Company and is restricted from use to fund operations. Refundable deposits are $289 thousand and $0 for the year ended September 30, 2022, and 2021, respectively.”
Currently, Mullen only offers preorders for one proprietary vehicle, the Mullen FIVE. The vehicle carries a price tag of $55,000 and customers interested in the EV can put down a refundable deposit of $100. The Form 10-K also notes that $213,679 of the refundable deposits were attributed to Bollinger.
Doing the math, $289,000 minus $213,679 comes to $75,321. Divide $75,321 by $100 and you get about 753, or 753 preorders. The assumption of 753 preorders assumes no refundable deposits from other commercial customers.
On Oct. 28, after Mullen’s 2022 fiscal year had ended, the company announced that preorders for the FIVE had quadrupled. Mullen attributed the order surge to its “Strikingly Different” tour, which saw all nine of its locations sold out.
In a press release released on the same day, the company said the following:
“The overall magnitude of Mullen FIVE pre-orders leading up to and during the Pasadena event has quadrupled in volume.”
MULN Stock: Does Mullen Have 3,000 Preorders for the FIVE EV?
Mullen’s press release and Form 10-K may imply that the company had 3,012 preorders for the FIVE as of the date of the press release. That would equate to refundable deposits of $301,200. Mullen itself has not confirmed this and has never released its FIVE preorder figure.
In November 2021, Mullen raised its FIVE reservation limit to 25,000 vehicles from 5,000 vehicles. At the time, the company attributed the limit increase to “overwhelmingly high” demand. In addition, several news sources rationalized that Mullen already had 5,000 preorders when the limit was raised.
With preorders on deck, the question pivots toward when Mullen will begin production and delivery of the EV. On the FIVE reservation page, the company says that production is scheduled to begin during the fourth quarter of 2023. Deliveries are estimated to start in Q2 2024. However, in the recently released Form 10-K, Mullen wrote that it now expects production to begin in “late 2024.” The company did not provide a delivery timetable.
The FIVE has a range estimate of 325 miles and a 0 to 60 mph speed of 3.2 seconds. In addition, the EV will carry a 95 kilowatt-hour battery pack that will be able to charge to 80% in just 21 minutes.
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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.