Mullen Automotive (NASDAQ:MULN) announced this morning that it had delivered 38 Class 3 THREE electric vehicles (EVs) to Randy Marion Automotive Group (RMA), bringing its total deliveries to the dealership to 48 EVs. The company has invoiced RMA $2.5 million for its recent delivery.
The deliveries are part of RMA’s $63 million purchase order for 1,000 THREEs. Mullen expects to deliver 150 THREEs to RMA this year, with the remaining 850 THREEs to be delivered next year. It also expects to deliver 300 Class 1 ONEs this year and 6,000 ONEs next year.
“I am pleased to see additional Class 3’s are on their way to Randy Marion,” said CEO and Chairman David Michery. “Class 3 production has ramped up significantly, and I am confident we will achieve our 2023 production volumes.”
MULN Stock: Mullen Announces THREE Deliveries, Begins Trading on Reverse Split Adjusted Basis
Despite the deliveries, shares of MULN stock were in the red earlier this morning, although they have since rebounded. This is likely due to the company’s shares trading on a 1-for-100 reverse stock split adjusted basis, effective as of today. This measure was approved at the company’s special meeting of stockholders, with 129.27 million votes for, 115.11 million votes against and 1.28 million abstentions.
In order to remain listed on the Nasdaq, MULN must close at or above $1 for 20 consecutive trading days by Jan. 22, 2024.
So, what’s next for the company? Since the $2.5 million was invoiced for the recent RMA delivery, shareholders would like to see Mullen actually receive that cash in hand. Shareholders would also like to hear an update on the status of ONE deliveries. Yesterday, the ONE received certification from the California Air Resources Board (CARB) after previously receiving a certificate of conformity from the Environmental Protection Agency (EPA). With these two certificates, the ONE can now be sold in every single U.S. state.
In addition, Mullen CEO David Michery recently disclosed that Mullen needs to raise capital next year. Previous capital raises have been accompanied by extreme shareholder dilution. As a result, Mullen needs to figure out a way to raise capital that isn’t directly detrimental to shareholders.
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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.
