Mullen Automotive Projects $75M Revenue, Implements Cost-Cutting Measures

Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer, has announced a projected $75 million in GAAP revenue over the next six months, driven by sales from both Mullen Commercial and its subsidiary Bollinger Motors. The company expects to achieve an average monthly commercial sales figure of $12.5 million, marking a significant milestone in its growth trajectory.

Alongside this revenue forecast, Mullen has unveiled a series of cost-cutting measures aimed at improving its financial position. The company plans to reduce its overall spend from $12.8 million to $7.3 million, representing a substantial $5.5 million reduction. This will be achieved through a 20% reduction in headcount, the elimination of passenger vehicle programs, and facility consolidations.

David Michery, CEO and Chairman of Mullen, expressed confidence in the company's direction, stating, 'As Bollinger focuses on B4 ramp up production volume and Mullen's commercial vehicle sales momentum continues, I remain confident that through continued focus on revenue growth and expense reduction our near term cash flow will continue to improve.'

This announcement comes at a crucial time for Mullen Automotive, which has been making strides in the commercial EV sector. The company recently began commercial vehicle production in Tunica, Mississippi, and has received IRS approval for federal EV tax credits on its commercial vehicles. Additionally, Mullen has expanded its commercial dealer network to seven dealers, enhancing its sales and service coverage across key markets in the United States.

The projected revenue and cost-cutting measures indicate Mullen's strategic shift towards prioritizing its commercial vehicle segment and achieving financial sustainability. This move could potentially strengthen the company's position in the competitive EV market, particularly in the commercial vehicle space where demand for electric solutions is growing.

For investors and industry observers, this development signals Mullen's commitment to achieving profitability and scaling its operations. The focus on commercial vehicles, coupled with the expansion of its dealer network and production capabilities, suggests that Mullen is positioning itself to capitalize on the increasing adoption of electric vehicles in the commercial sector.

As the EV industry continues to evolve, Mullen's strategic decisions and financial projections will likely be closely watched by stakeholders looking for signs of success in this rapidly changing market.