Mullen CEO David MI Chery Publishes Open Letter to Shareholders Addressing Declining Stock Values

 An emerging electric vehicle (“EV”) manufacturer,  today shares an open letter to Mullen shareholders addressing declining stock values.

Dear Mullen Shareholders:

The Company has received numerous requests to respond to the ongoing decline of our stock. Many of these communications have been addressed to me personally with less than kind, and sometimes threatening statements.

As CEO of this Company, I take all shareholders’ concerns seriously. One of my primary responsibilities is to execute the Company’s business plan, and as evidenced by multiple prior communications to the public, the Company continues to make significant strides in that regard. I will summarize some of those at the end of this statement.

I am very disappointed by the performance of our stock.  As I have previously publicly stated, I do not believe the trading price of our stock even closely resembles the Company’s actual value. It is evident that, regardless of meeting significant corporate milestones (i.e., vehicle production completion within projected timelines), stock traders continue to place downward pressure on the stock, causing the price to fall.

I previously announced that the Company engaged Share Intel and other parties to investigate what I suspect to be unlawful trading practices in our stock. We are assembling all the data received to date and should have something to announce in the coming days.

I am extremely frustrated that the hard work of Mullen‘s dedicated team and the significant momentum and successes achieved to date are overshadowed by the unrealistic value attributed to our stock. The Company and I have demonstrated our commitment to the success of our initiatives by purchasing its stock through the previously announced Share Buy Back program.  I have also personally recently purchased stock, demonstrating my unwavering confidence in our Company.

I remain committed to executing the Company’s business plan and using all measures at our disposal to eliminate any unlawful trading practices in our stock.

Here are some recent highlights of company success:

Financial Highlights:

  • The Company had cash balances of $227.4 million on June 30, 2023.
        – Net cash used in operating activities was $113.6 million for the nine months ended June 30, 2023.
        – Net cash used in investing activities for the nine months ended June 30, 2023, was $107.4 million; primarily consisting of the ELMS acquisition where the Company acquired a 650,000 square-foot Mishawaka production facility (originally built by GM to produce Hummer vehicles). 
        – For the nine months ended June 30, 2023, we raised $364.1 million in net cash provided by financing activities.
  • The Company’s total assets on June 30, 2023, were $600.0 million and total debt was only $7.3 million.
  • The Company reported $351.8 million of stockholders’ equity on June 30, 2023, as compared to $157.0 million on Sept. 30, 2022.
  • First revenues of $308,000 were reported for the quarter ended June 30, 2023.
  • Research and development expenses for the quarter ended June 30, 2023, were $22.1 million as compared to $7.3 million for the quarter ended June 30, 2022.

Operational Highlights:

  • Closed on controlling interest of Bollinger Motors in Sept. 2022, adding commercial class 4-6 vehicle programs along with the B1 and B2 sport utility trucks, increasing Mullen’s overall EV lineup.
  • Closed on the acquisition of ELMS in Dec. 2022 including all IP for Class 1 & Class 3 vehicles as well as the manufacturing plant in Mishawaka, Indiana.
  • The Company has received $279 million in purchase orders for Mullen Class 1 and Class 3 EV Vans and Trucks from Randy Marion Automotive Group with initial revenues from Class 3 vehicle deliveries expected during the quarter ending Sept. 30, 2023.
  • Delivery of first EV campus vans in March 2023.
  • Completed all required FMVSS testing requirements for vehicle crashworthiness and occupant safety validation for Class 1 in April 2023.
  • Partnered with Amerit Fleet Solutions in May 2023 to support national service, parts and warranty for all commercial vehicles.
  • Commercial vehicle assembly equipment transfer completed from Mishawaka, Indiana, plant to Tunica, Mississippi, facility in July 2023 enabling commercial Class 1 and Class 3 start of production.
  • Production milestone achieved in Aug. 2023 with the start of commercial assembly line with the first Class 3 completed vehicles rolling off the line.


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