Mullen Automotive (NASDAQ: MULN), an emerging player in the electric vehicle (EV) sector, has set a bold financial target, projecting $75 million in GAAP revenue over the next six months. This ambitious forecast is part of the company's strategy to carve out a significant presence in the highly competitive EV market. The projection is based on an anticipated average monthly commercial sales figure of $12.5 million, leveraging opportunities and pilot programs from Mullen Commercial and its subsidiary, Bollinger Motors.
In a parallel effort to bolster its financial health, Mullen Automotive is rolling out aggressive cost-reduction strategies. The company aims to slash its overall expenditure from $12.8 million to $7.3 million, a $5.5 million reduction. Key measures include a 20% workforce reduction, the discontinuation of passenger vehicle programs to focus solely on commercial EVs, and facility consolidations aimed at enhancing operational efficiency.
David Michery, CEO and Chairman of Mullen, underscored the company's strategic direction, highlighting the focus on revenue growth and expense reduction to improve near-term cash flow. This approach is supported by recent milestones, such as the commencement of commercial vehicle production at its Tunica, Mississippi plant and the IRS's approval for federal EV tax credits on its commercial vehicles, offering up to $7,500 per vehicle to eligible customers.
Further strengthening its market position, Mullen has expanded its commercial dealer network to seven dealers, including Papé Kenworth, enhancing its sales and service coverage across critical U.S. regions. The company's product lineup, featuring the Mullen ONE and Mullen THREE, has received necessary certifications, making them eligible for sale nationwide and benefiting from incentives like the CARB-issued HVIP approval, which offers up to a $45,000 cash voucher at purchase.
The recent Foreign Trade Zone (FTZ) status approval for its Tunica facility promises additional advantages, such as duty deferments and eliminations on exported vehicles, potentially lowering costs and boosting competitiveness abroad. As Mullen Automotive advances through the dynamic EV landscape, its strategic revenue targets and cost optimizations reflect a committed pursuit of growth and sustainability in the commercial EV sector.
