Mullen Automotive, Inc. is another “promising” electric vehicle manufacturer in the United States. Last week it unveiled an attractive crossover, the Mullen Five, which will begin production and delivery to customers in three years. Coinciding with the show at the Los Angeles show, Mullen began to secure reservations for the Mullen Five, at $ 100 each, capped at 5,000 units.
However, this cap was recently increased to 25,000 units, which have already been reserved. In other words, Mullen Automotive has raised $ 2.5 million in financing with it. modus operandi popularized by Tesla years ago: Refundable deposits in exchange for a spot in line for the first few units are not actual orders. Currently Tesla captures the reserves at $ 100 as well.
The Mullen Five is the focal point of the company’s effort and goals, said its CEO and director, David Michery. The advertised benefits are very interesting: 95 kWh of batteries, supercar benefits, more than 500 km of autonomy, ultra-fast recharging … all at a price of $ 55,000 per car plus extras.
Mullen Automotive needs money, like any emerging manufacturer that goes from sketch to mockup / prototype, and from mockup / prototype to series production models. They currently have facilities in Tunica County (Robinsonville, Mississippi) of 11,520 square meters on land that exceeds 400,000 m2. They are calling her AMEC, from Manufacturing Facilities and Advanced Engineering in English.
At the beginning of the month the company announced the expansion of the AMEC, within its lands to practically 10 times more surface in which to work. Not only the Mullen Five will be produced there, but also electric vans. They will have a body shop, fully automated painting facilities and an assembly line. That is not financed with 2.5 million dollars, obviously.
However, a very positive message is sent to investors and shareholders saying that they expected 5,000 reservations and that they have 25,000, even if they are not real orders, because that shows that there is interest in manufacturing their crossover. Assuming that the 25,000 orders materialize and at a minimum price of $ 55,000 per car, there is the potential to bill $ 1,375 million. That definitely sounds better already.
However, these announcements and figures must be taken with caution. Mullen Automotive said it was going to market the Dragonfly K50, known in China as Qiantu K50, in the United States, but did not sell a single one. We may also be familiar with Mullen for having kept some Coda Sedan after the bankruptcy of the original company, and that in 2017 he was still trying to sell them after making some improvements such as Mullen 700e (announced in 2014).
Mullen Automotive may try his luck at the casino that represents the emerging manufacturer exchange. Companies that have not sold a single car can reach scandal prices if they produce the hype enough (by own action or by third parties) and there are enough people who believe that they can end up making money with stock speculation.
There they are as references Tesla, Rivian Automotive and Lucid Motors, whose stock market valuations are scandalous compared to the traditional manufacturers in the United States. It is not that in FCE we doubt – precisely – the future of electric cars, in fact they are, but inevitably there will be more than one company that is selling smoke or fails with the best of its intentions.