Mullen's Bold Bet on Bollinger: Debt Resolution and Strategic Play for EV Dominance

The EV market's next frontier lies in commercial vehicles, and Mullen Automotive (NASDAQ: MULN) is making a high-stakes play to seize it. After years of turbulence, the company's recent moves to consolidate control over Bollinger Motors—and resolve its toxic debt—could unlock a rare opportunity in the electric commercial truck sector. For investors willing to tolerate volatility, this is a story of survival turned strategy, with a $100 million DOE grant and niche market dominance within reach.

The Bollinger Acquisition: A Strategic Gamble Revisited

When Mullen acquired a 60% stake in Bollinger Motors in 2022 for $148.2 million, the goal was clear: leverage Bollinger's rugged Class 4 electric truck, the B4, to carve out a niche in the booming commercial EV market. The B4, priced at $135,000 and designed for fleets, has already delivered 40 units to clients like the Lower East Side Ecology Center, proving demand for specialized zero-emission vehicles. Yet, Bollinger's financial struggles—over $20 million in debts and a court-ordered receivership—threatened to derail the partnership.

Until now.

Debt Resolution: A Strategic Masterstroke?

In a move that signals both desperation and resolve, Mullen increased its Bollinger stake to 95% in May 2025, wiping out $3.5 million in shareholder debt and dissolving the court receivership. This consolidation not only stabilizes Bollinger's operations but also positions Mullen to fully integrate its commercial EV ambitions. With the legal battle dismissed “with prejudice,” the path is clearer for the B4's next phase: scaling production and leveraging partnerships like EO Charging and Our Next Energy to build out battery and charging infrastructure.

The reverse stock split—reducing shares from 80 million to 800,000—was equally critical. Effective June 2, 2025, this move boosted MULN's stock from $0.57 to $57.30 overnight, narrowly avoiding Nasdaq's $1 delisting threshold. While this is a short-term fix, it buys Mullen time to execute its plan.

The B4's Market Moment: Niche, but Lucrative

The B4 isn't a Tesla truck. It's a purpose-built Class 4 EV with a 158-kWh battery, 185-mile range, and 7,325-pound payload capacity—perfect for last-mile delivery, construction, or municipal fleets. With New York state offering $100,000 incentives for such vehicles, the B4's price tag drops to $35,000, making it a steal for cash-strapped cities and companies under emissions mandates.

Partnerships like Emerald Transportation Solutions' refrigeration upfits for food delivery fleets are early wins. Even a modest 500-unit annual production run—far below industry giants—could generate $67.5 million in revenue, assuming 50% of the B4's price post-incentives.

Risks? Yes. But the Odds Are Tilting.

Mullen isn't out of the woods yet. Its Q1 2025 net loss hit $172.68 million, and cash reserves are down to $2.3 million. The $10 million loan from Bollinger's founder and the pending $55 million DOE grant for battery production are lifelines. Without them, liquidation looms.

Yet, the strategic calculus is shifting. The B4's eligibility for state incentives, its locked-in partnerships, and Mullen's now-95% control mean the company can finally focus on execution—not survival. Even Nasdaq's 10-day compliance window post-split is achievable if the stock holds above $1.

Why Act Now?

This is a binary bet. Mullen either secures the DOE grant and scales the B4's production—or it collapses. The reverse split has created a stark “all-or-nothing” moment. For investors with a high-risk tolerance, here's why to pull the trigger:

1. Niche Dominance: The commercial EV space lacks a dedicated Class 4 player. The B4's specs and incentives give it a first-mover advantage.
2. Debt-Free Path: Eliminating Bollinger's receivership removes a critical liability.
3. Stock Catalysts: The DOE grant decision (expected Q3 2025) and B4 production milestones are imminent catalysts.

Final Verdict: A High-Risk, High-Return EV Play

Mullen is not a stable investment. Its stock could crater if the DOE grant falters or production stumbles. But for those who see the $100 billion commercial EV market as the next battleground—and believe niche players can thrive—this is a rare chance to buy into a potentially disruptive asset at a fraction of its potential value.

The B4's specs, the reverse split's breathing room, and the DOE grant's imminence form a compelling thesis. The risk is real, but so is the reward. For the bold, MULN is a speculative buy—now or never.

Invest wisely, and keep your eyes on the DOE decision.