Shares of Mullen Automotive (NASDAQ:MULN) stock are trading lower after the company announced this morning that it had delivered 50 ONE Class 1 electric vehicle (EV) cargo vans to Randy Marion Automotive Group (RMA). Mullen has invoiced RMA $1.68 million for the delivery, which is part of a $200 million purchase order for 6,000 ONEs.
Mullen has now delivered a total of 100 ONEs to RMA, resulting in invoices for a total of $3.36 million. The big question here is when Mullen will be able to collect on the invoice. The EV company expects to deliver 285 ONEs by Jan. 8.
“We ended 2023 with an emphasis on delivering Class 1 and Class 3 vehicles and are now ramping up production to meet the commitments we have for the 2024 demands of our current and future customers,” said CEO David Michery.
MULN Stock: Mullen Delivers 50 Class 1 Vans to RMA
A key constraint to the ONE is its 110-mile range. However, Mullen is currently working on a solution to extend this range. In late December, the company announced that it had successfully completed the solid-state polymer (SSP) cell to pack integration for the ONE.
“110 miles current LFP range projected to increase to over 190 SSP miles range, a 73% increase, providing a superior, clean and safe alternative to current lithium-ion batteries and representing a significant increase over industry standards,” said Mullen. Furthermore, pack-level testing was initiated on Dec. 28, while SSP pack on-vehicle road testing is expected to begin this quarter.
Let’s not forget about Mullen’s other commercial vehicle, the Class 3 THREE. As of Dec. 26, Mullen had delivered 121 THREEs to RMA and had invoiced the dealership $7.62 million. The delivery was part of a $63 million purchase order for 1,000 THREEs. At the time, Mullen stated that it expected to deliver 150 THREEs to RMA by the end of 2023, although no updates have been provided since then.
At full capacity, Mullen’s facility in Tunica, Mississippi is expected to churn out 3,000 THREEs annually per shift. The vehicle carries a low range of 125 miles.
In mid-2023, Michery provided 2024 guidance for 368 Class 1 one-seaters, 11,000 Class 1 two-seaters, and 3,000 Class 3 vehicles.
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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.
