Mullen Automotive is working hard to slash its debt and has just revealed that it has eliminated $13 million in debt while reducing its current indebtedness from more than $30 million to a current estimate of less than $10 million.
Part of the company’s debt was associated with a debt obligation to Esousa Holdings and the automaker says that this debt conversion will save it more than $3.5 million in interest expenses.
“It’s been a great year for Mullen Automotive; we’ve made tremendous strides on all fronts, including significantly improving our financial health,” Mullen Automotive chief executive and chairman David Michery said in a statement. “Continuing our goal of being debt-free is a main focus and provides us with a strong path forward for our EV innovation and programs, securing investor confidence and overall company health.”
News of Mullen Automotive improving its finances comes less than two months after the company announced it had acquired a controlling interest in Bollinger Motors. Mullen acquired a 60 per cent stake in Bollinger for $148.2 million in cash and stock.
Read: Mullen Acquires Controlling Stake In Bollinger, Set To Revive B1 And B2
Mullen believes the acquisition of Bollinger and combining vehicles from the two brands will allow it “to dominate the entire class 1-6 commercial light and medium duty truck segments.”
The purchase will also see Mullen revive the Bollinger B1 and B2, two vehicles that were postponed indefinitely to allow the car manufacturer to focus on commercial vehicles.
For what it’s worth, Mullen has yet to begin production of any production vehicle and doesn’t expect to do so until 2024 with the launch of the Five, an electric crossover that will be offered in a flagship variant delivering in excess of 1,000 hp, hitting 60 mph (96 km/h) in 1.9 seconds, and continuing through to a top speed of at least 200 mph (322 km/h).
