West Coast EV maker looks to Indiana for growth
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California-based automotive and electric vehicle manufacturer Mullen Technologies Inc. (Nasdaq: MULN) is making an investment in Indiana’s manufacturing sector from two approaches, and both involve electric trucks. The company is bidding to acquire bankrupt electric delivery van maker Electric Last Mile Solutions, while also recently announcing a partnership with Lafayette-based truck body and trailer manufacturer Wabash (NYSE: WNC).
Michigan-based ELMS, which set up production inside the former AM General plant in Mishawaka, filed for bankruptcy in June.
About two years ago, the company re-tooled the abandoned, 650,000-square-foot factory that at one time manufactured the civilian Hummer. Their plan was to produce vans for “last mile” deliveries. Last September, ELMS said it had started production and was delivering the first units.
According to trade publication TechCrunch, Mullen Automotive is the leading bidder for ELMS.
The publication says Mullen placed a stalking horse bid of nearly $92 million to buy ELMS, $55 million for the company assets including its plant in Mishawaka, and $37 million in liabilities.
Mullen paid a $5.5 million deposit to be applied toward the purchase, according to a filing with the U.S. Securities and Exchange Commission.
ELMS went public in 2021 through a $1.4 billion SPAC deal. But problems arose for ELMS earlier this year following an investigation by the SEC, which revealed alleged improper stock purchases ahead of the IPO.
Former Chief Executive Officer Jim Taylor and former Executive Chairman Jason Lua stepped down amid the accusations against ELMS.
TechCrunch says Mullen has its own troubles. Nasdaq warned that the company could be delisted because its share price traded below $1 for 30 consecutive days.
The publication says Mullen disclosed the notice from Nasdaq one day after announcing it acquired a 60% controlling interest in Bollinger Motors, which is also a Michigan-based startup that intended to build battery-electric commercial trucks and off-road pickups.
The $148.2 million cash and stock deal poised Mullen to expand into the “high-demand commercial EV space,” according to David Michery, CEO and chairman of Mullen Automotive. “Combining Bollinger’s vehicles with our existing class 1 and class 2 EV cargo van programs gives us the chance to dominate the entire class 1-6 commercial light and medium duty truck segments.”
Two weeks after the Bollinger acquisition, Mullen announced it was teaming up with Wabash to produce a stronger, lighter, refrigerated truck body on electric chassis.
Wabash has developed lightweight composite, EcoNex Technology, that reduces overall truck weight. Bollinger says the Wabash product will result in overall cost savings due to weight savings and thermal efficiency.
“Wabash’s EcoNex composite technology reduces the amount of electricity needed to maintain cold temperatures,” said Mark Ehrlich, vice president of new business development at Wabash. “The all-electric truck we’re developing with Bollinger Motors will be highly efficient with more uptime and less charging compared to conventional construction.”