Mullen Automotive To Cut $170 Million In Costs Amid Weak EV Market
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.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
