Mullen Automotive (NASDAQ:MULN) stock hit a new 52-week low of 36 cents this morning as we progress further into the fourth quarter and end of the year. This quarter will be extremely important for Mullen, as the electric vehicle (EV) company has guided for the delivery of 160 Mullen THREE models by the end of the year. The THREE is Mullen’s Class 3 EV cab chassis truck.
In late September, Mullen announced that it had delivered its first 10 THREEs to Randy Marion Automotive Group (RMA), which were “invoiced at $630,000.” The delivery was part of RMA’s purchase order for 1,000 THREEs, which is valued at $63 million. That would give each vehicle an estimated price tag of $63,000, lower than the MSRP of $68,500. The lower price tag should be expected due to the large order size.
After the initial 10-vehicle delivery, Mullen stated that it expects to deliver another 150 THREEs to RMA before the end of 2023. It expects the remainder of the 1,000 vehicle purchase order to be fulfilled next year.
MULN Stock: Mullen Says It Will Make 160 Class 3 EVs Before 2024
The THREE is produced at Mullen’s Commercial Vehicle Assembly Plant in Tunica, Mississippi. Production at the facility is planned at 3,000 Class 3 vehicles annually per shift. “As electric vehicle adoption rates increase, Mullen plans to add a second shift for Class 3 production, which will increase capacity to 6,000 total vehicles per year,” said Mullen. The company did not provide a timeline as to when these capacity estimates could be achieved.
Meanwhile, Mullen seems to be making progress on the paperwork front. On Sept. 14, Mullen received IRS approval as a “qualified manufacturer,” which will allow the Mullen ONE and THREE to qualify for up to $7,500 in federal EV tax credits. About a week later, Mullen also announced that the THREE had received EPA certification. On top of that, the vehicle had also completed all of the testing requirements and compliance measures under the Federal Motor Vehicle Safety Standards (FMVSS). EPA certification and FMVSS compliance allow the company to began shipping the THREE to customers.
Still, the guidance for 160 Class 3 deliveries this year is way under the guidance CEO David Michery previously gave in July. Michery guided for 930 Class 3 deliveries in 2023 and the production of 3,000 Class 3 vehicles for 2024.
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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.
