Mullen Automotive (NASDAQ:MULN) stock is in focus this morning after CEO David Michery appeared in a video to provide a business update and answer some key shareholder questions.
Michery kicked off the video by reiterating that Mullen only intends on enacting another reverse split if its shares cannot reach $1 organically. In order to regain compliance, MULN stock must close at or above $1 for 20 consecutive trading sessions by Jan. 22.
In the video, Michery also dived into the company’s buyback program, which started on Aug. 16 and expires on Dec. 31. The company announced on Aug. 17 that it had purchased 3.7 million shares and then bought another 2 million shares on Aug. 29. Michery confirmed that Mullen has since not bought back any more shares, partly because of a blackout period that began on Sept. 30 and will end when Mullen files its Form 10-K.
“One day after we file our 10-K on December 29th, we can then resume purchasing shares,” said Michery. “What we will do is we will extend the buyback period for an additional six months to give us additional leverage to utilize our dry powder to repurchase our shares and retire them. That’s what we intend on doing.”
MULN Stock: CEO David Michery Answers Shareholder Questions
Next, the CEO provided a guidance update for the Mullen ONE and THREE, estimating fourth-quarter sales of 300 ONEs and 450 THREEs. Mullen had previously guided for the production, not sales, of 300 ONEs and 150 THREEs in 2023. In July, Michery had guided for 660 ONEs and 930 THREEs leaving the factory in 2023. Michery did not disclose how many ONEs and THREEs have been produced thus far.
For Bollinger, Michery stated that its B4 Class 4 chassis cab is currently undergoing a pilot program, adding that:
“They’re going to start with their vehicles hitting the streets come July of 2024. We anticipate or expect them to be a good piece of the market as it relates to Class Four and when you take our Class One and Class Three, you consolidate with their class four think we’re pretty big force to be reckoned with.”
Michery concluded that he believes Mullen is still in its early innings and that it’s on the right track. For 2024, Mullen will have a key focus on generating revenue.
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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.
