Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Mullen Automotive expands to Balkan EV market with GAMA

Published 2024-05-24, 12:40 p/m
MULN
-

BREA, Calif. - Mullen Automotive Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced a new partnership with GAMA, a distributor based in southeastern Europe, to offer its full lineup of commercial EVs in the Balkans Region. This move marks the company's continued expansion into European markets.

GAMA, which has a history of distributing electric vehicles in the region, will represent Mullen's complete range of commercial electric vehicles, including urban delivery vehicles, vans, and trucks. The distributor has successfully delivered over 300 vehicles in the past year and is known for securing public tenders for local governments. GAMA's network boasts eight sub-dealers throughout the Balkans and is in the process of establishing a new facility in Belgrade.

The initial order from GAMA includes 53 commercial EVs, signifying a significant step for Mullen in the Balkans Region. This partnership aligns with Mullen's strategic efforts to extend its global footprint, particularly in Europe.

Mullen Automotive has two vehicle plants in the United States, one in Tunica, Mississippi, and another in Mishawaka, Indiana. The company began its commercial vehicle production in Tunica in August 2023, and its commercial vehicles have been approved for federal EV tax credits by the IRS, providing up to $7,500 per vehicle for eligible customers.

Both Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, have received certification from the California Air Resource Board and the Environmental Protection Agency and are available for sale in the U.S. as of January 2024.

David Michery, CEO and chairman of Mullen Automotive, expressed enthusiasm for the partnership, stating that securing GAMA as a distributor is a pivotal development for the company's presence in southeastern Europe.

The information in this article is based on a press release statement.

InvestingPro Insights

As Mullen Automotive Inc. (NASDAQ: MULN) ventures into the European market through its partnership with GAMA, the company's financial health and stock performance provide critical insights for investors. According to InvestingPro data, Mullen Automotive holds a market capitalization of $45.76 million, reflecting its position as a niche player in the electric vehicle industry. Despite the company's aggressive expansion efforts, Mullen is not profitable over the last twelve months, with a reported gross profit margin of -254.49% as of Q2 2024, indicating significant challenges in maintaining cost-effective operations.

InvestingPro Tips reveal that Mullen's management has been actively repurchasing shares, which can be an indicator of confidence in the company's future prospects. However, the company also faces a rapid cash burn rate, which is essential for investors to monitor given the capital-intensive nature of the automotive industry. Moreover, the stock has experienced considerable volatility, with a one-week price total return of -17.49% and a six-month price total return of -77.09%, as of mid-2024. This could signal uncertainty among investors regarding the company's short-term performance.

For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/MULN. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that could further inform investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.