Mullen Automotive Inc (NASDAQ: MULN) is making a powerful reversal northbound after the Company acquired all of electric vehicle company ELMS’s (Electric Last Mile Solutions) assets in an all-cash purchase. In the Chapter 7 approved transaction, Mullen acquired ELMS’s manufacturing plant, all inventory and intellectual property. The factory in Mishawaka, IN, provides Mullen with the capability to produce up to 50,000 vehicles per year. The acquisition allows acceleration of the path to production and market for Mullen FIVE and Bollinger B1, B2 retail vehicles by 12 plus months. The platform and plant acquisition results in a significant reduction of the Company’s previously forecast overall spend commercial Product Platforms to be assembled at Mullen’s Tunica MS. Facility for Launch of Mullen Class 1 and Class 3 Commercial Delivery vehicles into Market in 2023. The Mishawaka, IN factory that forms part of the Company’s acquisition, previously produced General Motors Hummer H2 SUV and SUT and also subsequently contract manufactured the Mercedes-Benz R-Class vehicle.
MULN is probably the most exciting story in small caps and the most explosive as the stock is sitting at just $0.37 since reversing off $0.21 lows. On Thursday the Company kicks off its “Strikingly Different” tour with the first stop in California on Oct 27 and 28 at the Rose Bowl in Pasadena. Investors will have the chance to drive the Mullen FIVE themselves and report back on it and this will be a game changer for MULN if the FIVE can do what they say it can. While the event is open to the public, ‘Front Row’ FIVE reservation holders and Mullen investors will be offered the first priority to reserve a spot on tour. MULN saw a surge earlier this year after the Company reported that testing on its solid-state polymer cells reveals the potential for a 150-kilowatt-hour battery pack that delivers over 600-plus miles of range, a significant advancement over today’s current lithium-Ion batteries. The shorts may not have anticipated that many of the same traders involved in the Gamestop and AMC massive short squeezes would find MULN at under $0.50 but they have and its game on now as MULN short position has more than doubled over the past few weeks.
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Mullen Automotive Inc (NASDAQ: MULN) is a Southern California-based automotive company that owns and partners with several synergistic businesses working toward the unified goal of creating clean and scalable energy solutions. Mullen has evolved over the past decade in sync with consumers and technology trends. Today, the Company is working diligently to provide exciting EV options built entirely in the United States and made to fit perfectly into the American consumer’s life. Mullen strives to make EVs more accessible than ever by building an end-to-end ecosystem that takes care of all aspects of EV ownership.’
Mullen recently purchased a 124,700 sq ft facility located in Tunica, Mississippi that now serves as an advanced manufacturing engineering center and vehicle production facility. The Company is working on an expansion of the existing 124,700 sq ft by an additional 1.2M sq ft; designing assembly lines (Body, Paint, General, and Offline); and preparing for the complexities of the manufacturing processes, while ensuring flexibility for critical changes. This plan includes utilizing existing assets that are currently in place for initial validation, and in parallel, begin efforts to design, develop, build, and equip the facility to support planned production for Mullen FIVE and all other upcoming vehicles.
MULN is making big moves in battery technology; results of Mullen’s solid-state polymer battery testing with the Battery Innovation Center (BIC) in Indiana. Testing results from BIC show the solid-state polymer cell, rated at 300 Ah and 3.7 volts, tested in at 343.28 Ah at 4.2 volts, exceeding expectation and in line with test tolerance from previous EV Grid test results. The test data collected from both BIC and EV Grid have exceeded expected test tolerance and show an impressive outcome and future for solid-state batteries. It is expected that with this technology, when scaled to the vehicle pack level, a 150-kilowatt hour solid-state battery can deliver over 600 miles of range on a full charge for the Mullen FIVE EV Crossover. In general, solid-state batteries offer higher energy density, faster charging time, smaller size and safety compared to traditional lithium-ion cells.
The Company’s flagship, the Mullen FIVE represents Mullen Automotive’s entry into the full-electric, mid-size luxury SUV market. The Mullen FIVE is competitively priced starting at $55,000 – for the United States market before federal and state incentives are applied. Offering at least two optional packages, with a price range from a base price of $55,000 to $75,000 (for additional features), will allow customers to purchase a vehicle with options that best fit their budgetary and performance needs. Product validation is expected to begin in the 4th quarter of 2023 with the first sellable vehicles available in the fourth quarter of 2024. The Mullen FIVE is expected to deliver an electric range up to 325 miles will reach 0 to 60 in 3.2 seconds with a max speed of 155 miles per hour.
Mullen provided a first look at the ultra-high-performance EV sport crossover the FIVE RS. The Mullen FIVE RS is an ultra-high-performance EV that will feature a top speed of 200 mph and acceleration from 0-60 mph in just 1.9 seconds. The vehicle will be equipped with 800-volt architecture, all-wheel drive, a two-speed gearbox and over 1,000 horsepower.
— TripleDz (@DanielDuenas7) October 24, 2022
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Mullen recently announced the kickoff dates of its “Strikingly Different” Tour for the Mullen FIVE EV Crossover with the first stop in California on Oct 27 and 28 at the Rose Bowl in Pasadena, California. From there, the U.S. tour will continue to Las Vegas, Nevada, on Nov. 10 and 11 at the world-famous Las Vegas Motor Speedway.
On October 19 MULN announced the US Bankruptcy Court approval on Oct. 13th, 2022 of its acquisition of electric vehicle company ELMS’s (Electric Last Mile Solutions) assets in an all cash purchase. In the Chapter 7 approved transaction, Mullen will acquire ELMS’s manufacturing plant, all inventory and intellectual property. Acquisition benefits include:
- The factory in Mishawaka, IN, providing Mullen with the capability to produce up to 50,000 vehicles per year
- Allows acceleration of the path to production and market for Mullen FIVE and Bollinger B1, B2 retail vehicles by 12 plus months
- Commercial Product Platforms to be assembled at Mullen’s Tunica MS. Facility for Launch of Mullen Class 1 and Class 3 Commercial Delivery vehicles into Market in 2023.
- The platform and plant acquisition results in a significant reduction of the Company’s previously forecast overall spend
The Mishawaka factory that forms part of the Company’s acquisition, previously produced General Motors Hummer H2 SUV and SUT and also subsequently contract manufactured the Mercedes-Benz R-Class vehicle. This makes it the perfect fit for production of the Mullen and Bollinger portfolio of consumer vehicles. The ELMS asset acquisition and the recent acquisition of the majority ownership of Bollinger Motors, gives Mullen the ability to integrate Bollinger’s vehicle platforms, B1 and B2 along with Mullen’s FIVE and FIVE RS platforms into an already existing and capable high volume manufacturing facility. As a result, this will accelerate launch of the Bollinger B1, B2 retail vehicles by 12 plus months.
Manufacturing optimization will include moving the Mullen FIVE EV Crossover production to the Mishawaka Factory from the Tunica, MS facility. Mullen FIVE production is planned to begin production in 2024. Tunica will now become the Commercial Manufacturing Center and capitalize to produce all Mullen and Bollinger Class 1 to 6 commercial vehicles. With the additional Manufacturing capacity, total production volumes are expected to exceed Mullen’s previous business plan projections. The commercial portfolio is expected to increase over 50% with the addition of the ELMS assets and the retail portfolio is expected to more than double with the addition of Bollinger vehicles and the manufacturing capacity of Mishawaka. The Company’s majority ownership acquisition of Bollinger Motors was closed in August 2022 with a combination of stock and cash. The ELMS acquisition will be completed as an all-cash purchase.
David Michery, CEO and chairman of Mullen Automotive stated: “Mullen’s acquisition of Bollinger was one of the largest transactions of its kind in the EV market. Upon closing the ELMS transaction, the Company will be in a position to strategically leverage all its acquired assets to shorten its production path and aggressively expand into the commercial and consumer EV market.”
— MRinvestorPRO (@MRinvestorPRO8) October 22, 2022
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Currently trading at a $190 million market valuation MULN has significantly improved its balance sheet since last year adding $60 million in cash on the books per last filling. The ELMS’s (Electric Last Mile Solutions) acquisition is a major step in the right direction for MULN and it significantly advances the Company’s goals while lowering the cost of growth and increasing capacity. While Mullen was set to begin manufacturing in 2024 the acquisition means plans have now been expedited by up to a year, implying that production of the FIVE series of SUV crossovers might begin in 2023. The “Strikingly Different” tour which kicks of this Thursday could be a serious game changer for MULN if the FIVE can do what they say it can do. The short position that has more than doubled in recent weeks has to be seriously concerned here; the stock was trading as high as $16 shortly after its IPO and the Company is in better shape now that it’s ever been. We will be updating on MULN when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with MULN.
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Disclosure: we hold no position in MULN either long or short and we have not been compensated for this article.