Mullen Makes Additional Cost Cutting Initiatives While Also Announcing Record Increase in GAAP Revenue for Current Fiscal Quarter 2
Rhea-AI Summary
Mullen Automotive (NASDAQ: MULN) announces record GAAP revenue of $3.18 million for the quarter ending March 31, 2025. The EV manufacturer is implementing additional cost-cutting measures effective April 2025, including staff reductions, facility consolidation, and operating expense reduction.
The company maintains its focus on cell and battery pack developments while prioritizing vehicle sales. Mullen's commercial lineup features the Mullen ONE (Class 1 EV cargo van) and Mullen THREE (Class 3 EV cab chassis truck), both compliant with federal safety standards, EPA, and CARB certifications. Additionally, Bollinger's B4 Chassis Cab, an all-electric Class 4 commercial truck, began customer deliveries in October.
Positive
- Record GAAP revenue of $3.18 million for Q2 2025
- Implementation of cost reduction initiatives to improve operational efficiency
- Commercial EV lineup fully compliant with federal safety and emissions standards
Negative
- Ongoing staff layoffs indicating potential operational challenges
- Facility closures suggesting business consolidation needs
- Continued focus on reducing burn rate implies cash flow concerns
Insights
Mullen's announcement of
The simultaneous announcement of significant cost-cutting measures - including staff reductions, facility closures, and explicit focus on reducing the "operating expense burn rate" - signals serious cash conservation efforts. These actions directly acknowledge ongoing negative cash flow despite the revenue growth.
While operational streamlining can improve efficiency, the scale and urgency of these cuts (scheduled for April 2025) raise fundamental questions about Mullen's financial runway and ability to execute its manufacturing and technology development roadmaps. The company appears caught in a challenging position - needing to simultaneously invest in product development and battery technology while aggressively reducing operating expenses.
The announcement carefully avoids mentioning profitability metrics, unit sales figures, or the absolute size of the burn rate being addressed. For perspective, established automotive manufacturers typically generate quarterly revenues in the billions, making Mullen's "record" figure relatively insignificant in this capital-intensive industry. These extensive cost-cutting measures, while necessary for near-term survival, could potentially compromise the company's growth trajectory and competitive positioning.
Mullen's strategic positioning reveals a company attempting to establish itself in the commercial EV space while navigating significant financial constraints. The company has achieved important regulatory milestones - both the Class 1 Mullen ONE cargo van and Class 3 Mullen THREE cab chassis truck have secured Federal Motor Vehicle Safety Standards compliance and emissions certifications from EPA and CARB. These regulatory achievements remove critical barriers to market entry.
The company's parallel focus on "cell and battery pack developments" indicates an attempt at vertical integration in battery technology, which could potentially differentiate Mullen if successful. However, this two-pronged strategy of vehicle commercialization and battery technology development creates competing priorities in what appears to be a capital-constrained environment.
The announcement's mention of Bollinger's B4 Chassis Cab (a Class 4 commercial vehicle) with deliveries beginning in October represents Mullen's expansion into higher-weight class commercial vehicles through its Bollinger Motors acquisition. This diversified commercial vehicle portfolio targeting Classes 1, 3, and 4 shows strategic positioning in growing fleet electrification segments.
However, the extensive operational cuts raise serious questions about manufacturing capacity, service infrastructure, and ability to support fleet customers. Commercial fleet buyers typically require vendors with proven financial stability and service capabilities - areas potentially compromised by the announced reductions. The absence of production volumes, delivery targets, or customer acquisition metrics in this announcement is particularly telling when evaluating Mullen's commercial progress beyond regulatory compliance.
Company cost cutting initiatives include:
• Additional reduction of staff as Company continues to integrate operations.
• Further elimination of facilities.
• Additional reduction of operating expense burn rate.
Mullen continues focus on cell and battery pack developments
BREA, Calif., March 27, 2025 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, today announces record GAAP revenue of
The additional initiatives the Company is currently undertaking include the following and are planned to take effect in April 2025:
• Additional reduction of staff as Company continues to integrate operations.
• Further elimination of facilities.
• Additional reduction of operating expense burn rate.
• Continued focus on cell and battery pack developments.
“We continue as an organization, taking every opportunity to adapt our verticals based on market needs, allowing us to remain competitive in an ever-changing economy,” said David Michery, CEO and chairman of Mullen Automotive. “Our continued focus is on selling vehicles and advancing our battery technologies.”
Mullen’s commercial EV lineup includes the Mullen ONE, Class 1 EV cargo van, and the Mullen THREE, Class 3 EV cab chassis truck. Both vehicles are available for sale and in full compliance with U.S. Federal Motor Vehicle Safety Standards, the Environmental Protection Agency, and the California Air Resources Board (“CARB”) certifications denoting strict adherence to clean air emissions standards.
Bollinger’s recently launched commercial vehicle, the B4 Chassis Cab, is an all-new, all-electric Class 4 commercial truck designed from the ground up with extensive fleet and upfitter input. The company began delivering Bollinger B4 vehicles to customers in October.
About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. The Company’s commercial dealer network consists of seven dealers, which includes Papé Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key West Coast, Midwest, Pacific Northwest, New England, and Mid-Atlantic markets.
In September 2022, Bollinger Motors, of Oak Park, Michigan, became a majority-owned EV truck company of Mullen Automotive. Bollinger Motors has passed numerous milestones including its B4, Class 4 electric truck production launch on Sept. 16, 2024, and the development of a world-class dealer and service network with over 50 locations across the United States.
To learn more about the Company, visit www.MullenUSA.com.
Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential" and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, timeframes for implementation of anticipated cost-cutting and expense reduction initiatives and the resultant impact to the Company, if any, of these measures. Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date.
Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com
Corporate Communications:
IBN
Austin, TX
www.InvestorBrandNetwork.com
512.354.7000 Office
Editor@InvestorBrandNetwork.com
FAQ
What is Mullen Automotive's Q2 2025 revenue performance?
What cost-cutting measures is MULN implementing in April 2025?
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When did Bollinger begin delivering its B4 Chassis Cab electric trucks?
