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Mullen chairman wants to sell MULN B1, B2 EV models to ‘global military’ customers, replicate mass appeal of Hummer

By David Burrows

11:12, 8 November 2022

Mullen Automotive founder and CEO David Michery. Photo: Getty
Mullen Automotive founder and CEO David Michery. Photo: Getty

The CEO and Chairman of Mullen Automotive (MULN) has claimed his Mullen B1 and B2 EV models are ideally suited to war terrain and therefore will have great appeal to “global military” customers.

David Michery, who is also founder of Mullen Automotive, said the aim was to get the US government to see the potential of the B1 vehicle and then look at what Mullen can do to make it “military friendly”.

He said the B1 design was specifically conducive to war terrain and that the capabilities associated with the hugely popular off-road 4-wheel drive H1 (Hummer 1 -last produced in 2006) were evident in the B1 only updated and electric powered.”

Michery insisted: “To me the B1 and B2 vehicles are what the Hummer would eventually have become.”  He stressed that the recent acquisition of ELMS assets including factory facilities were a significant benefit in getting the B1 and B2 to market.

“The ELMS factory that was used to produce the Hummel in high volumes is the perfect place to build the B1 as the factory is already geared up to build a similar spec of vehicle.”

Mullen’s CEO was quick to point out that the B1 model would not be solely focused on military customers but that like the Hummer H1 famously owned and driven by Arnold Schwarzenegger, would be marketed as a commercial vehicle too.  As Michery explains the plans is for a “global military vehicle with mass appeal to the local population.”

Acquisition drive

It has been a busy few months for Mullen: last month it received approval from the US Bankruptcy Court to acquire ELMS’s assets, including the plant in Mishawaka, Indiana in a $240m cash transaction.

Mullen claims the former ELMS plant in Indiana will provide the capability to produce up to 50,000 vehicles per year. Significantly, the deal will accelerate the launch of the Bollinger B1 SUV and Bollinger B2 pickup by more than a year – according to the company.

In September, Mullen acquired a 60% controlling interest in Bollinger Motors for $148.2m in cash and stock.

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The ELMS acquisition and the Bollinger stake are clearly linked to a business strategy to bring new EV models to market at a greater pace.

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Nasdaq-listed Mullen Automotive is still very much seen as a ‘start up’ - the company only went public in November 2021 and while its acquisition spree has grabbed the headlines, there is nothing much for investors to see yet in terms of  detailed EV sales numbers.

Doubts over Mullen’s longer-term prospects persist and the lack of enthusiasm for growth companies this year have seemingly hit the stock hard in 2022

The stock is currently 97.37% down on the year at $0.27 – the share price had gone as high as $13.14 shortly after its Nasdaq debut but it has been a downward trend since.

It is a stock that has seen a lot of short selling – with many investors not buying into the firm's ‘improving story’ - at least not yet.

However, according to Marketbeat, the indicators suggest these low levels are overextended and oversold so all the market needs is another reason to start buying and it could come any day.

“The risk for investors is that the production of vehicles is still about a year away and that will weigh on prices regardless of the news. Once production begins, however, this stock could easily move up into the high-single-digit-dollar range”.

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