Mullen Automotive (NASDAQ:MULN) stock opened higher by about 5% today but has since given up all of its gains. On top of that, the electric vehicle (EV) maker has a major deadline coming up this week.
Last December, Randy Marion Isuzu, LLC (RMI) — a division of Randy Marion Automotive Group (RMA) — agreed to purchase 6,000 Class 1 EV cargo vans from Mullen with a total value of approximately $200 million. At the time, Mullen noted that deliveries would begin during the first quarter of 2023. It just so happens that the last day of Q1, March 31, is quickly approaching.
RMA CEO and founder Randy Marion said the following about the deal at the time:
“We see a tremendous opportunity with the Mullen commercial portfolio, and the launch of the commercial van could not come at a better time […] There’s significant pent-up customer demand for Mullen to fulfill. I have many customers looking at me to find product for their companies.”
MULN Stock: RMI Delivery Deadline Is Four Days Away
Earlier this month, Mullen CEO David Michery released a statement concerning the deliveries:
“Mullen anticipates making Class 1 EV deliveries to various commercial customers before the end of March 2023 in connection with the customer orders referenced below.”
The “customer orders referenced below” refers to the RMI deal. In the statement, Michery also disclosed that Mullen had $87.40 million of cash and cash equivalents as of Feb. 28. The company expects to receive $110 million from firm commitments by June 1, 2023 as well. Michery believes that these combined values should allow Mullen to execute on its business plan over the next 12 months.
The number of vehicles to be delivered to RMI by March 31 was not disclosed. Realistically, the delivery of all 6,000 vans should take quite some time, however. Meanwhile, MULN stock shareholders should prepare for another major update soon.
On Feb. 2, Mullen announced that it had entered into a 60-day pilot program with Menzies Aviation for its Class 1 EV cargo van. Loop Global will provide charging infrastructure services, while Menzies will oversee the program at Los Angeles International Airport (LAX). The vehicle will be evaluated across “several use cases,” such as transporting cabin cleaning crews to airplanes. Shareholders should expect to hear an update on the program by April 3 if the agreement was made on Feb. 2.
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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.