Mullen Automotive Stock Analysis: Latest Developments

Mullen Automotive, Inc. (NASDAQ: MULN) has seen a decline in its stock price as new financial details emerge from the company's recent reports.

In its first-quarter report, Mullen Automotive disclosed net sales of $2.92 million. Within the last quarter, which ended on December 31, 2024, the company invoiced 58 vehicles totaling $4.4 million and collected $6.0 million in cash. This reflects a challenging sales environment for the electric vehicle manufacturer.

The company experienced a significant net loss attributable to common shareholders amounting to $114.9 million, translating to a loss per share of **$661.33**. This is a notable increase compared to the previous year's net loss of $61.4 million, which adjusted to a per-share loss of **$91,940.42**, considering the impact of a 1:60 reverse stock split enacted on February 18, 2025.

One of the key strategies employed by Mullen Automotive is the deferral of revenue recognition for most invoiced vehicles until they have received payment. This approach means that the company will not count sales as revenue until the customer completes their payment. Additionally, a return policy comes into effect once the dealer sells the vehicle to an end-user, which further complicates the revenue accrual accounting process.

In a significant move to improve its financial health, Mullen Automotive announced annual cost-cutting measures totaling approximately $13 million. This will involve a reduction in headcount and personnel expenses, aimed at enhancing operational efficiency and reducing overall cash expenditure.

In addition to cost cuts, CEO and Chairman David Michery noted progress in U.S. battery production. Mullen Automotive recently acquired battery line equipment from Nikola Corporation, reinforcing their commitment to domestic battery assembly and production solutions.

As of December 31, 2024, Mullen Automotive reported total cash reserves of $2.7 million, a decrease from $10.7 million as of September 30, 2024. The dwindling cash reserves signal the urgent need for the company to optimize its operations and secure additional funding.

Despite these challenges, Mullen remains optimistic about its commercial models. Michery stated that both Mullen's commercial operations and Bollinger have been gaining momentum in the market. They are focusing on building sales opportunities across Class 1 and 3 vehicles throughout the United States.

Current Market Status: At present, MULN shares have dropped by 25.9%, trading at approximately $7.339 as per the latest updates.

As Mullen Automotive navigates these financial hurdles, the actions it takes in the coming quarters will be pivotal in determining its future trajectory in the competitive electric vehicle market.

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