Mullen Automotive Inc. (NASDAQ: MULN), one of America’s leading commercial vehicle dealerships, announced a new deal with Pape Kenworth on Tuesday.
Pape Kenworth has a presence in nine states, employs 1500 technicians in 815 service bays at 150 different locations and currently operates in 9 state.
The EV Company will be able to expand their commercial dealer network by signing a sales and service contract with them.
Mullen Automotive teamed with six franchise dealers in the last few months to open up fleet opportunities for commercial electric vehicles.
MULN’s stock price in 2024 has disappointed investors.
Why does Pape Kenworth stock matter so much?
Mullen Kenworth and Pape Kenworth believe that collaboration can help accelerate commercial EV adoption.
Mullen ONE, Mullen THREE and Mullen ONE are innovative products of Californian-based Mullen. Both comply with US safety standards.
The two electric commercial vehicles may also qualify for federal and state incentives to help reduce costs.
David Michery, the CEO of MULN stated in a release to press today that:
Pape Kenworth’s expertise and extensive network in the commercial vehicles industry will be crucial in bringing Mullen’s commercial EVs into a wider market.
Crispus Nyaga, our expert in the market, is still bearish about Mullen and believes that the company will be next Fisker to declare bankruptcy.
Mullen stocks remain a high-risk investment
Mullen Automotive shares continue to raise several red flags.
The stock was split in half to stay listed on Nasdaq.
The financial performance of electric vehicle firms has also been appalling.
MULN reportedly generated revenue of $16,8 million for the nine-month period ending in June, but has yet to recognise that revenue.
The EV Company lost 326 millions dollars over the same time period. This is a big improvement from the $806 million losses of a year earlier. However, it remains a concern since the company only has $4,000 million in cash and cash equivalents.
Mullen Automotive’s M&A strategies have also been less than prudent.
In 2022, the company will spend $148 Million on Bollinger Motors and $240 Million on Electric Last Mile Solutions.
Comparatively, the market capitalization of its shares is currently $428 Million.
Crispus Nyaga, our expert in the field of financial analysis, warned that Mullen may even declare bankruptcy before 2024 due to its lack of ability to raise money via share sales and because of a poor income statement which limits their chances of getting debt financing.
The post Mullen Automotive (MULN), stock soars by 10% after deal with Pape Kenworth could be updated as new information unfolds
