Shares of Mullen Automotive (NASDAQ:MULN) stock are in the spotlight today. The electric vehicle (EV) company provided an update to its Ruling Request Application with the U.S. Customs and Border Protection (CBP).
Back in March of 2023, Mullen announced that it partnered with Rapid Response Defense Systems (RRDS) to open up U.S. government vehicle fleet orders. RRDS has completed over 2,500 federal government orders since 2014. In November, Mullen announced that it had filed responses for final ruling and compliance to the CBP regarding its Class 1 EV cargo van, the ONE. A favorable ruling from the CBP would allow Mullen to sell its ONE to all branches of the U.S. government. At the time, Mullen added that it expected to hear back from the CBP within 45 days.
“Upon a successful ruling, Mullen will have demonstrated the commitment it has made to growing the EV market in the U.S. Along with that I am proud to be able to say, ‘An American product, built in America by Americans,’” CEO David Michery said in November.
MULN Stock: Mullen Awaits CBP Ruling
Unfortunately, the wait will have to be a bit longer. On Feb. 20, Mullen received word that the CBP would provide a final determination for its application within one to two months. Applications are generally reviewed on a first-in, first-out basis that takes between 45 to 90 days. However, the timeline “may exceed this aspirational timeframe depending on the agency’s caseload,” said Mullen.
The big question remains: does the U.S. government want the ONE? During the fourth quarter, Mullen delivered 100 ONEs to Randy Marion Automotive Group (RMA) and another 130 ONEs in January. At the same time, Mullen recognized a total of $0 in revenue during Q4 and January due to its return provision with RMA.
The firm order agreement between the two companies states that RMA can return any new, unused and unsold Mullen vehicles with less than 500 miles back to Mullen after 12 months for a full refund. It’s not exactly clear how many ONEs RMA has sold to customers, as Mullen has not disclosed this.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
