Mullen Automotive (NASDAQ: MULN), an emerging player in the electric vehicle (EV) sector, has announced a projected $75 million in GAAP revenue over the next six months. This forecast, averaging $12.5 million monthly from commercial sales and pilot programs, marks a pivotal step for the company as it seeks to carve out a niche in the bustling EV market. The revenue projection includes contributions from both Mullen Commercial and its subsidiary, Bollinger Motors, highlighting the company's growing footprint in the commercial EV space.
Alongside its optimistic revenue outlook, Mullen is rolling out aggressive cost-cutting measures aimed at reducing its overall spend from $12.8 million to $7.3 million. These measures include a 20% workforce reduction, the discontinuation of passenger vehicle programs, and facility consolidations. Such steps are designed to streamline operations and bolster the company's financial health, as it shifts focus towards commercial EV production.
David Michery, CEO and Chairman of Mullen, underscored the company's strategic direction, emphasizing the importance of revenue growth and expense reduction for improving near-term cash flow. Mullen's recent milestones, such as the commencement of commercial vehicle production in Tunica, Mississippi, and IRS approval for federal EV tax credits, further underscore its commitment to market expansion and competitiveness.
The company's expansion of its commercial dealer network to seven dealers, including Papé Kenworth, enhances its sales and service capabilities across key U.S. markets. Additionally, Mullen's product lineup, featuring the CARB and EPA-certified Mullen ONE and Mullen THREE, benefits from incentives like the HVIP approval, offering up to $45,000 in cash vouchers, which could significantly boost sales.
Mullen's Foreign Trade Zone status for its Mississippi manufacturing center promises additional advantages, such as duty deferments and exemptions on exported vehicles, potentially lowering costs and enhancing international market competitiveness. As the EV industry evolves, Mullen Automotive's strategic initiatives in revenue generation, cost management, and market expansion position it to meet the growing demand for commercial electric vehicles effectively.
