Mullen Auto’s recent progress signals promise, yet hurdles remain. Progress in technology confronts market hurdles, challenging Mullen’s growth trajectory.
Mullen Automotive has recently made several promising announcements, but significant questions remain:
Successful Pilot Program: Mullen completed a pilot program with Menzies, an aviation services company at LAX. The program demonstrated excellent results, including 100% uptime, reduced costs, and lower carbon emissions compared to gas-powered vehicles. However, it’s unclear if Menzies intends to purchase Mullen’s vans.
Vehicle Acquisition: Mullen did not manufacture the vans used in the pilot program but acquired them from Electric Last Mile Solutions in 2022. If Menzies decides to buy more vans, Mullen will need to figure out how to manufacture them at scale.
Competition: Mullen faces competition from companies like Ford, which is already selling electric vans rapidly. Ford’s substantial investment in the platform and manufacturing capacity may pose challenges for Mullen.
Solid-State Battery Integration: They announced plans to integrate solid-state polymer batteries into its cargo vans, potentially increasing the range from 110 to over 200 miles per charge. However, skepticism remains due to the complexity and timeline of solid-state battery development.
Partnership with LGG: Mullen’s battery integration involves a partnership with Chinese company Linghang Guochuang Group (LGG). The company was previously accused of misrepresenting its progress on solid-state batteries.
Despite positive developments, Mullen’s stock price remains low, and it faces challenges, including short interest and the need to increase its share price to avoid delisting from the Nasdaq. Its future success hinges on addressing these issues and realizing its potential in the electric vehicle market.