Shares of Mullen Automotive (NASDAQ:MULN) stock opened in the green to start off the trading week today, despite the company issuing an amended Form 8-K to correct a guidance typo in CEO David Michery’s video interview transcript.
Initially, the transcript and video stated that Michery had forecast fourth-quarter sales of the Mullen THREE to be 450. The new filing corrects that figure to 150. Mullen did not explain why Michery stated 450 vehicles instead of 150 vehicles, although upon closer inspection of the video, he may have been trying to say “for 150” instead of “450.” Meanwhile, Michery’s fourth-quarter forecast of 300 sales for the Mullen ONE still stands.
MULN Stock: Mullen Amends Mullen THREE Sales Forecast
Production of the THREE began in August, while production of the ONE began in November. As a result, fourth-quarter sales of the ONE should equate to full-year 2023 sales. Mullen delivered its first 10 THREEs to Randy Marion Automotive Group (RMA) on Sept. 28 as part of a 1,000 vehicle purchase order worth $63 million. The company stated that it expects to deliver another 140 THREEs during the fourth quarter, bringing full-year 2023 sales to 150 units. The remaining 850 vehicles left in the purchase order are expected to be delivered next year.
These estimates illustrate a stark decline from the prior guidance that Michery gave in July. Back then, the CEO had forecast that 660 Class 1 vehicles would “leave the factory” while 930 Class 3 vehicles would “leave the factory to customers.” For 2024, Michery estimated the production of 368 Class 1 one-seaters, 11,000 Class 1 two-seaters and 3,000 Class 3 vehicles.
Mullen ONE Receives EPA Certificate of Conformity
On a brighter note, Mullen announced this morning that its ONE had received the Environmental Protection Agency’s (EPA) certificate of conformity, which the THREE had already received. Both vehicles have also completed the testing requirements under the Federal Motor Vehicle Safety Standards (FMVSS).
“With this EPA final approval, Mullen is all hands-on deck and laser-focused on production and deliveries to our commercial customers,” said Michery.
Now, Mullen will be able to initiate deliveries of the ONE to RMA member Randy Marion Isuzu (RMI), pending completion of production and end-of-line testing requirements. Last December, the company announced that RMI had placed a purchase order for 6,000 ONEs worth $200 million.
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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.
