Mullen Automotive, Inc. MULN shares are trading lower on Monday. The company anticipates ramping up to an average of $12.5 million per month in revenue over the next six months, totaling $75 million in GAAP revenue from Mullen Commercial and Bollinger Motors sales opportunities.
Apart from this, the company plans to cut spending by $5.5 million, from $12.8 million to $7.3 million per month over the next six months.
The cost cut involves a 20% headcount reduction, eliminating the Mullen FIVE passenger vehicle program and facility consolidations by terminating property leases and subleasing non-essential properties.
Mullen aims to boost near-term commercial revenue and improve operational efficiencies, expecting revenue and gross margin growth to further reduce cash needs.
In recent months, the company has completed over 80 vehicle demonstrations and pilots across various U.S. industries, leading to significant commercial sales progress.
David Michery, CEO and chairman of Mullen Automotive, stated, “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.”
Last week, the company announced that its subsidiary, Bollinger Motors, has completed its first customer delivery of the 2025 Bollinger B4 Chassis Cab.
Also, the company expects to report $4.5 million in revenue for the quarter ending September 30, 2024, a significant increase of 6,791% compared to the $65,235 reported for the quarter ending June 30.
Price Action: MULN shares are down 7.17% at $2.33 at the last check Monday.
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