Mullen Automotive (NASDAQ: MULN) is set to dramatically cut its operations over the next twelve months in a bid to reduce its cash burn. The company is seeking to save $170 million in annual operating and investing cash flows from the measures.
The reductions are set to a base line of the twelve months ended September 30, 2023, under which operating and investing expenses amounted to $287 million. The reduction implies a 59% cut to expenditures.
Investments will see the biggest cut under the new measure, which will be reduced from $108 million in spending last year to just $7 million this year. Operating expenses meanwhile will be reduced to $110 million from $179 million last year.
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The cuts are expected to “better refine focus on the commercial EV segment,” which Mullen says will drive near term revenue. The company moving forward is to prioritize near term revenue and curtail noncommercial programs, focus on expanding its commercial dealer network, and integrate the Troy and Irvine engineering centers while consolidating operations.
Mullen has said the changes are necessary as a result of the EV sector and overall market proving to be “challenging.”
Mullen Automotive last traded at $4.00 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
