The Mullen Automotive Inc (NASDAQ: MULN) stock price rallied 17.1% after revealing that it had closed the acquisition of the Electric Last Mile Solutions' (ELMS) assets in an all-cash deal worth $105 million.
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Mullen acquired all of ELMS’s IP assets and its inventory, which it believes will make its launch into the commercial market much faster than it had previously anticipated. As a result, the company expects to start delivering its Class 1 vehicle in Q1 2023 once it is finally certified by the relevant regulators.
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The EV maker expects to start delivering its class 3 vehicles in Q2, in a rapid ramp-up of production at the manufacturing facilities acquired from ELMS.
David Michery, Mullen Automotive’s CEO and chairman, said: “I have been working on this plan for many years, putting in place the strategic and critical enablers to be a dominant competitor in the EV market. Successfully completing this asset acquisition moves Mullen into an all-new position with IP, plants and product platforms that no other competitor can offer to both retail and commercial customers. We have everything we need to launch the Mullen and Bollinger EVs product lineup.”
Today’s announcement follows the company’s receipt of $150 million in new funding on November 16, 2022. At the time, the company noted that the funds would enable it to close the ELMS acquisition quickly.
Mullen Auto has been making progress on multiple fronts, given that its Mullen FIVE EV received positive reviews from the public. The EV manufacturer started a tour of its Mullen Five vehicles, dubbed the “Strikingly Different” tour. Participants at tour stops were allowed to ride in the vehicle for the first time, and many gave positive reviews.
Mullen Auto also partnered with Newgate Motor Group in Ireland to distribute its I-GO urban commercial delivery vehicle, another significant milestone for the firm. The positive update should have boosted MULN shares, but this was not the case.
MULN shares are down 62.34% in the past month despite significant investor interest in the company. Over 50.25 million shares had changed hands at writing.
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Mullen Auto stock price.
The Mullen Auto (MULN) stock price rallied 17.13% to trade at $0.2250, rising from Wednesday’s closing price of $0.1921.
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