Mullen Automotive: M&A Integrations And Debt Financing Could Make The Share Price Increase

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Mullen is a successful business story currently investing in scalable electric vehicles and energy solutions.

The CEO made special mention of its relationship with Hofer and compared the deal with that of AMG and Mercedes-Benz.

Among the words from the CEO, it is worth noting that he was quite humble when he noted that MULN is not in any position to compete with Tesla.

Max Lirnyk/iStock via Getty Images Mullen Automotive (NASDAQ: MULN ) is an experienced M&A actor in the electric vehicle industry. The company has grown through acquisitions since 2014. Management has convinced many debt investors to help the company finance the development of its new model, the Mullen FIVE. As a result, the total amount of assets increased significantly in recent months. In my view, if debt investors don’t convert their holdings into shares, and management delivers the new vehicles on time, FCF could justify higher valuations. Mullen: Growth Through Acquisitions In The EV Industry Since 2014

Incorporated in Delaware, and based in California , Mullen is a successful business story currently investing in scalable electric vehicles and energy solutions: Company’s Website In my view, it is quite relevant to note that MULN’s management is specialized in the acquisition of other businesses. Financial advisors will likely appreciate that the CEO knows what to acquire, and how to negotiate with other business owners.

MULN’s successful story started with the acquisition of CODA Automotive, one of the only two certified EV companies selling EVs across the United States: Company’s Website Management also acquired many other car brands in the past, which made MULN what it is today. CODA Energy was acquired in 2017, CarHub was acquired in 2018, and the acquisition of Net Element was announced in 2020: Company’s Website MULN Is Currently Conducting Research To Deliver The First Mullen FIVE In 2024

We know a bit about the company’s delivery plan, so we can start running some DCF models. MULN is expected to deliver the first vehicles in 2024, which means that the first net revenue should start around that year. With this in mind and previous expertise in the EV industry, I would say that we could expect positive FCF from 2029: We intend to continue to invest in research and development and work on establishing partnerships that would enable us to commence customer deliveries of the vehicle model named the Mullen FIVE as early as fourth quarter of 2024. As part of this plan, we expect to begin building prototype Mullen FIVEs in 2022. Source: S-3 We also have some information about the price of the new design. MULN expects the Mullen FIVE to be priced at $55,000, which means that it will most likely be an affordable car for many individuals in the United States. We can expect a large target market: The Mullen FIVE is competitively priced starting at $55,000 – for the United States market before federal and state incentives are applied. Offering at least two optional packages, with a price range from a base price of $55,000 to $75,000, will allow customers to purchase a vehicle with options that best fit their budgetary and performance needs. Source: S-3 MULN’s CEO Noted That He Is Not In A Position To Compare MULN With Tesla, But He Is At The Same Time Making A Comparison With Mercedes-Benz

MULN is currently a pre-revenue business, so it appears that the CEO is conducting a significant number of presentations and investment rounds to receive financing. I am glad that management is generating a lot of noise. Among the words from the CEO, it is worth noting that he was quite humble when he noted that MULN is not in any position to compete with Tesla ( TSLA ): I would look really stupid to you if I came out and said that I think we can compete with Tesla. Tesla has been here for a very long time. Anyone in their right mind would stay away from saying they can compete with Tesla until they’ve sold 2,000 cars a year. This a nine-inning baseball game, and we’ll see who’s standing at the end of the ninth inning. Source: Mullen Is Making Performance EVs To Get Excited About | CarBuzz MULN also gave certain information about some new partnerships that will help the company develop a new working prototype. The CEO made special mention of its relationship with Hofer and compared the deal with that of AMG and Mercedes-Benz. I don’t really know whether the […]

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