Mullen Automotive (NASDAQ:MULN), led by CEO David Michery, has had a rough year. However, the company has noted that production of its Class 3 electric vehicle (EV) should begin this month. Michery seems to be confident in the production phase, as he recently provided guidance for this year and 2024.
In an interview, Michery revealed guidance for 660 Class 1 vehicles and 930 Class 3 vehicles for 2023. Michery stated that the Class 1 vehicles will “leave the factory,” while the Class 3 vehicles will “leave the factory to customers.” Next year, Michery has guided for 368 Class 1 one-seaters, 11,000 Class 1 two-seaters, and 3,000 Class 3 vehicles.
The one-seater will be designed for short delivery routes. It will likely be a small contributor to sales.
“Well, you get some companies that, you know, really these vehicles are you know designed for less, you know, mile delivery and it’s it’s a one-person job, it’s not a two-person job, so we took that into account,” said Michery concerning the one-seater.
MULN Stock: David Michery Shares New Mullen Guidance
Mullen’s two-seater seems to be the star of the show, as evidenced by its 11,000-unit guidance. Summing the guidance up gives us 1,590 vehicles for 2023 and 14,368 vehicles for 2024, an increase of 804%.
With production of the Class 3 vehicle expected to begin this month, Mullen has a lot on its plate. The EV company previously announced that it had teamed up with NRTC Integration to assist with the production. This entails installation, integration, and robotic and automation systems.
Mullen’s facility in Tunica, Mississippi, has received upgrades in anticipation for production, in the form of increased staff, automated guided vehicles, and chassis assembly lines, among others. Additionally, the facility boasts 120,000 square feet of manufacturing space and sits on 100 acres of land. Following the start of production, deliveries are likely to begin in August and September. Successful deliveries would mean that Mullen would report positive revenue in the quarter ending Sept. 30.
To date, Mullen has received $279 million in purchase orders from its Class 1 and 3 vehicles from Randy Marion Automotive Group (RMA). Mullen expects to receive initial revenues from the purchase order in August.
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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.
