Shares of Mullen Automotive (NASDAQ:MULN) stock are in focus after the company announced that it had submitted a pre-application to the U.S. Department of Energy (DOE) for its Advanced Technology Vehicles Manufacturing (ATVM) loan program. The ATVM program provides automakers with a total of $25 billion in debt funding and was established in 2008 to support projects that increase U.S.-manufactured vehicle mileage while reducing U.S. dependency on foreign oil.
Mullen seeks $50 million as part of its plan to produce 150,000 battery packs through 2032. The funding would also be used toward plant equipment at Mullen’s high-energy facility in Fullerton, California.
“We are fully committed to transitioning the manufacturing of EVs and their related components in the U.S.,” said CEO and Chairman David Michery. ”We are grateful for the vision of Congress and the federal government to provide resources to support the establishment of U.S.-based battery manufacturing.”
MULN Stock: Mullen Requests $50 Million from the DOE’s ATVM Program
Earlier this week, the electric vehicle (EV) company announced that it had submitted a concept paper toward the DOE’s Funding Opportunity for Battery Materials program. The program was established in November 2023 and provides a total of $3.5 billion in grants toward the domestic production of battery materials and advanced batteries. Batteries are Mullen’s highest material costs and the company’s concept paper highlights a plan in which these costs could be reduced by 20%.
Mullen has requested $50 million from this program and expects to submit a formal application on or before March 19.
Meanwhile, Mullen unveiled the production design of its FIVE RS yesterday at the Consumer Electronics Show (CES) 2024. Michery himself took to the stage, although the vehicle’s side-view mirror fell off after its driver-side door was closed.
Users on X (formerly Twitter) quickly began making comparisons of the situation to when Tesla (NASDAQ:TSLA) unveiled the Cybertruck. In an attempt to show the strength of the vehicle’s windows, Chief Designer Franz von Holzhausen actually ended up cracking the glass.
Furthermore, the FIVE RS will carry quite a high price tag. Michery stated that the vehicle would start at around $295,000, while the carbon-fiber version will start around $385,000.
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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.
