Mullen surges 80% following reverse split and latest class 3 EV delivery
Shares of Mullen Automotive (NASDAQ:MULN) surged more than 80% Thursday after the company enacted a 1-for-100 reverse stock split.
Shareholders approved the proposal at the company’s 2023 Special Meeting on December 18th. The reverse split took effect at 12:01 a.m. Thursday morning.
“There was only one way to give the Company the best possible chance of regaining minimum bid compliance for the mandated 20 trading days and that was by doing a significantly large reverse stock split.” Wrote CEO Michery in an open letter to shareholders on Tuesday.
Mullen also announced the automaker has delivered an additional 38 Class 3 vehicles to Randy Marion Automotive Group.
The company invoiced the vehicles for $2.5M.
“Demand is strong for the Mullen’s All-Electric product lineup,” said Brad Sigmon, fleet vice president at Randy Marion Automotive.
In total, Randy Marion has pledged to purchase 1,000 Class 3 vehicles, amounting to $63 million, with most of these vehicles scheduled for delivery in the calendar year 2024.
“I am pleased to see additional Class 3s are on their way to Randy Marion,” said David Michery, CEO and chairman of Mullen Automotive. “Class 3 production has ramped up significantly and I am confident we will achieve our 2023 production volumes.”
As previously disclosed, production of 150 Class 3 vehicles is planned for 2023 at the Tunica, Mississippi, facility. The total capacity for Class 3 vehicles is projected at 3,000 annually per shift at this location.
Mullen's production of the Mullen THREE is centered in Tunica, where the company's commercial vehicle assembly takes place for both the Mullen ONE, a Class 1 EV cargo van, and the Class 3 EV cab chassis trucks. The initial deliveries of the Mullen THREE to Randy
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