Shares of Mullen Automotive (NASDAQ:MULN) stock are deep in the red this morning, despite the company announcing that it had delivered Mullen THREEs to its dealership partner, Randy Marion Automotive Group (RMA).
These vehicles came from Mullen’s commercial vehicle assembly plant in Tunica, Mississippi, which is shipping THREEs ready for delivery to RMA’s customers.
“We are in full swing delivery of Class 3 vehicles to Randy Marion Automotive Group in North Carolina,” said CEO and Chairman David Michery. “It’s exciting to see a constant flow of vehicle transports picking up Class 3’s at our Tunica assembly plant and heading down the road for customer deliveries.”
Mullen did not disclose how much money it has received from the deliveries, which is a focal point of interest for shareholders. It’s possible that Mullen will not receive any money until RMA sells the vehicles to its customers.
MULN Stock: Mullen Delivers THREEs to RMA
The THREE has an estimated range of 125 miles per full charge and a max payload of 5,316 lbs. Mullen has stated that the vehicle was built for urban last-mile delivery, which makes sense given its low range. Other use cases include construction, landscaping and catering.
So, why is MULN trading lower on the news? For starters, the delivery was known, not new, information. Last month, the company announced that RMA had received its license to retail Mullen’s vehicles. This license, in conjunction with Mullen’s original equipment manufacturer (OEM) license, “allows the movement of vehicles to customers.”
Mullen also stated that the THREE would be delivered to three customers starting on Nov. 20. Next, the company’s Tunica assembly plant would begin the process of shipping out the next 40 THREEs to additional customers, such as Duke Energy (NYSE:DUK), Merchants Fleet and MGT Leasing.
“With our dealer license in hand, we will begin Class 3 deliveries immediately and begin taking deliveries on Mullen’s Class 1 vehicles in early December,” said RMA Fleet Operations VP Brad Sigmon at the time.
Mullen’s Tunica assembly plant is currently assembling both THREEs and ONEs. The company has guided the delivery of 150 THREEs and 300 ONEs before the end of the year.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
