Yesterday, Mullen Automotive (NASDAQ:MULN) announced that MGT Lease Company had signed a vehicle purchase agreement for 250 Class 3 cab chassis electric vehicle (EV) trucks worth $15.75 million. The national fleet leasing provider had previously received four Class 1 EV vans from Mullen.
So, who exactly is MGT? According to Mullen, MGT is a “growing commercial vehicle sales and leasing company based in North Carolina, with annual revenue of over $70 million in 2022 and $100 million projected for 2023.” The company caters toward last-mile services and sells and leases commercial vehicles from all major original equipment manufacturers (OEMs).
However, savvy Reddit users were quick to do their own research on the company that placed the multimillion-dollar order. Let’s get into the details.
MULN Stock: Redditors Question MGT Lease Deal
According to publicly available information, MGT was first incorporated as a business in October 2021. Based on Mullen’s statement, that would mean MGT brought in over $70 million of revenue in its first full year. While the company was incorporated in 2021, its website was not registered until October 2022 through GoDaddy, based on a who.is and ICANN Lookup search.
One Redditor notes that, while the website was registered in 2022, it wasn’t available in March of this year. That’s also when Mullen announced the delivery of four Class 1 EV vans to the company. Another Redditor points out that a Google search for “inurl:https://mgtlease.com/” shows the website was created on April 19 and edited yesterday to show a catalog of products.
Public information shows that Benjamin C. Brasington III is named as a member of MGT, while Thomas P. Gavlik is named as a managing member and agent. A LinkedIn profile for Brasington shows prior roles at Kernersville Chrysler Dodge and TCB Enterprise. Meanwhile, Gavlik’s profile yields just one connection and provides little information.
Together, these points have led to Redditors’ concerns. It’s entirely possible that MGT is a successful business that managed to hit it out of the ballpark in its first full year. However, the Reddit crowd is definitely not sold on that idea.
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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.