IRVINE, Calif., Oct. 14, 2024 EV player Mullen Automotive (MULN,Financial) announced plans to build a new subsidiary in Mullen Credit Corporation (MCC) to enhance dealership support through vehicle floor planning. The move aims to facilitate the evolving demands of Mullen's fast-growing dealership network.
Moreover, in addition to the dealership support, MCC will offer financing options to fleets and small businesses, which should help substantially improve service capabilities. Also, as a wholly owned subsidiary, MCC effectively aligns with Mullen's goals in providing a more comprehensive financial infrastructure for its client base.
The company has had a devastating year, with its stock nosediving by 99.85%. This sharp drop is mostly linked to the broader market challenges in the EV space and the company's failure to meet key promises. As a result, the stock is now trading in the distress zone, reflected by its Altman Z-score of -25.06. Additionally, the firm's profitability score is a dismal 1 out of 10, according to GuruFocus, underscoring its bleak financial health. These figures highlight the major financial struggles the company faces in the market, which will continue to weigh on its near-term performance.
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