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Mullen Automotive to investors: Please stay with us

Illustration of a sad car. 

Illustration: Shoshana Gordon/Axios

The CEO of troubled electric automaker Mullen Automotive told shareholders this morning that the company has enough cash on hand to survive the next 12 months.

Why it matters: Mullen is clinging to survival since its SPAC merger in November 2021. The latest message from its CEO has the feeling of a plea.

Driving the news: CEO David Michery released a statement this morning "addressing recent investor inquiries" — rarely a good sign.

What's happening: Mullen had about $87.4 million in cash and cash equivalents as of Feb. 28, Michery said.

  • It's anticipating another $110 million "from firm commitments" by June 1.
  • That's "enough capital to execute on its business plan over the next 12 months," Michery said.

Meanwhile, Mullen expects to deliver vans to U.S. customers by the end of March. First deliveries were in Europe in December.

State of play: Mullen, based in Brea, Calif., is one of many post-SPAC automakers that are on life support or at least in the ICU.

  • The company received a delisting warning from Nasdaq in September for trading below the $1 threshold. It got a 180-day extension this month.
  • Its stock this morning was hovering around $0.15 a share, down from $12.95 following the SPAC merger.

Of note: Mullen in September bought a controlling interest in electric truck maker Bollinger Motors and acquired bankrupt Electric Last Mile Solutions in December.

💭 Our thought bubble: It's ugly out there for EV automakers. Their executives are doing everything they can to hang on.

Go deeper: Short-seller Hindenburg Research last April declared Mullen "Yet Another Fast Talking EV Hustle."

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