Latest news with #Michery
Yahoo
a day ago
- Automotive
- Yahoo
Mullen CEO David Michery doubles down on commercial EVs after buying out Bollinger
DETROIT — After speaking with Mullen Automotive CEO David Michery for close to an hour, you get the impression he would be a formidable poker player. If there's the slightest chance that he holds the winning cards, no matter what's face up on the table, he's not likely to fold. And that's the way Michery, 58, is approaching his financially challenged electric vehicle startup, Mullen Automotive of Brea, Calif. Michery sat down with reporters from Automotive News and Crain's Detroit Business on June 4 at Mullen subsidiary Bollinger Motors' headquarters in Oak Park, Mich. Michery didn't flinch or give an inch under tough questions that probed his company's finances and why he remains determined to crank up production of EVs when the business case that justified their investment has, in part, been upended by tariffs and changing government policies. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Dressed in a black T-shirt and weathered blue jeans, wearing a gold watch and showing a smattering of colorful tattoos on his arms, Michery doesn't look like a traditional automotive CEO. He doesn't act like one, either. In the last 60 days, after Mullen stock twice sank to less than a nickel a share, Michery orchestrated two reverse stock splits to keep Mullen Automotive's shares in Nasdaq compliance. He gave away an unused 675,000-square-foot plant in Indiana to a creditor — which Mullen got in 2022 in its $240 million purchase of bankrupt Electric Last Mile Solutions, another failed EV startup. On June 3, Michery settled a lawsuit filed by Bollinger Motors founder Robert Bollinger, paying him $11 million and acquiring 95 percent of the company's shares. Michery essentially runs both Mullen Automotive and Bollinger Motors on the generosity of an unnamed benefactor who cuts a check for $1.5 million per week to the company and a $150 million line of credit that the company draws upon. That investor's total cash infusion into Mullen is more than $800 million, according to court documents. Michery believes the difficult market for EVs is temporary and his strategy is to wait out the tariff negotiations while positioning Mullen and Bollinger for big production increases. Virtually all Mullen and Bollinger vehicles contain significant Chinese-sourced components. Here is an edited transcript of the interview with Automotive News Reporter Richard Truett and Crain's Detroit Business Reporter Kurt Nagl. A: A lot of those losses are noncash losses. There's no excuse. EVs are out of favor right now. We have invested about $900 million since going public in 2021. The company has survived when no one else has. It's a testament to our resiliency and our ability to withstand the most awful market conditions in the last 20 years. It's no excuse for [our] performance, but if you look at the major OEMs, like General Motors and them shutting down the [Chevrolet] Bolt, that should tell you all you need to know. Backing off of EVs is something we haven't done, and we believe that is a viable space. Our core investor is a multibillionaire who is committed to the company. It's not going to go nowhere. I am a fighter. I don't give up. I like to believe that you have to kill me to stop me. The whole purpose of me buying Bollinger for $148.2 million initially and then investing another $77 million was because I believe in the B1 and the B2. This was never about a commercial vehicle, the B4. When I bought the company, it was about B1 and B2. I still stand firm and believe there is a big market for the B1 and B2 at some point in time. But we have to crawl before we walk and walk before we run. We are going to establish the commercial business, not only on the Bollinger side with the B4 and the B5, but on the Mullen side with the Class 1 and Class 3. We believe we will monopolize the commercial segment. I am determined to move Bollinger forward. I believe in the product. I believe in American engineering. Here in Detroit is the foundation of the electric car business, in general. Bollinger is, in my opinion, one of those brands that, realistically, will outlast everyone. We are banking our bet on Bollinger and their products because it is American engineered, American built and it is done here, in the great state of Michigan. To be clear, Bollinger was paused temporarily. The company is in the process of ramping production back up. We believe we will be in position to deliver new, upgraded vehicles within a 10-week period. We have over 40 vehicles in inventory that are ready to go to customers. We are working on cleaning up Bollinger's supply chain. We are also looking at getting the B5 ready. We are looking at all our best opportunities to give us maximum potential to not disrupt manufacturing. But, more importantly, scale to a level where I believe this is going to become a hot commodity. I want to produce hundreds of thousands of these [B4s]. In order to do that, you have to have the mechanism to go into high volume production. Roush. Let's be real. It's a low-volume manufacturing line. I want to move to high-volume production. That may be at Roush. Maybe I will acquire a high-volume manufacturing facility that could support ramping high-volume production for B4 and B5. There's a story behind that. You can't blame Bollinger for the current market. And you can't blame Bollinger for tariffs. And you can't blame Bollinger for Robert Bollinger filing this frivolous lawsuit. That hurt the company. But we have to set a clear narrative that Bollinger is going to move aggressively forward. It has customers. It has support. And it has a great product. There's a demand for the product and we will prove that. We have a $150 million equity line of credit. We've had it for about six months and we've only used about $1 million. That's an instrument that allows us to use our stock as currency. Picture that as a credit card. Mullen has a $150 million credit card that it can use at will. There's also three instruments that are preferred that total $80 million. We have another $80 million of firm, committed capital that we draw down on. We're like everyone else running our cash flow based on … again, we draw down on our instrument. We pay when we pay. Typically, we try to pay people within 30 [days], and we have been. We are no different than General Motors. Ask GM what is the timing of their [accounts payable]. Probably 60-90 days. We are paying people. We are still producing. We still own our factory. We have no debt against us. We are in a much better position than everyone else because we don't owe anything on what we own. Founded: 2021 CEO: David Michery Company headquarters: Brea, Calif. Plants: Tunica, Miss.; contract manufacturer, Roush Enterprises, Livonia, Mich. Products on sale: Bollinger B4 electric chassis cab; Mullen One electric cargo van; Mullen Three Class 3 commercial electric truck; Mullen Campus compact electric cargo van Products in development: Bollinger B1 and B2 consumer off-road utility electric vehicles; B5 and B6 chassis cab electric commercial trucks; Mullen Five electric crossover Financials: $7.9 million in revenue for 6-month period ending March 31; $162 million net loss; $2.3 million cash on hand Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor.
Yahoo
5 days ago
- Automotive
- Yahoo
Electric truck startup Bollinger exits court receivership after paying back founder who sued
Editor's note: An earlier version of this story incorrectly described the court status of Bollinger Motors. The company was in receivership in U.S. District Court. Electric truck startup Bollinger Motors has exited U.S. court receivership thanks to more financial aid from parent Mullen Automotive Inc., whose chief has ambitious plans for a rebound set in Michigan. California-based Mullen acquired an additional 21 percent of Bollinger, bringing its ownership stake in the suburban Detroit company to 95 percent, Mullen announced June 2 as it executed its second reverse stock split in as many months to stay compliant with Nasdaq rules on share prices. In tandem with Mullen's transaction, Bollinger was discharged from federal court receivership and case dismissed with prejudice, according to a filing in U.S. district court in Detroit. Mullen Automotive CEO David Michery said the company paid $11 million to Robert Bollinger. In March, Bollinger sued the company he founded, claiming it was broke and seeking to recover his loan. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Mullen, which has faced a host of financial issues beyond Bollinger, is all-in on the electric vehicle startup, Michery said June 4 in an interview with Automotive News and affiliate Crain's Detroit Business. Bollinger Motors — despite the spat with its namesake — will persevere as a brand that 'will outlast everyone,' Michery vowed at the startup's Oak Park, Mich., headquarters. 'You can't blame Bollinger for the current market, you can't blame Bollinger for tariffs, you can't blame Bollinger for the disruption that occurred with Robert filing this frivolous lawsuit,' Michery said. 'That hurt the company.' Now, Mullen is putting its chips on Bollinger Motors to weather the storm. Michery said production of Class 4 trucks would resume in eight to 10 weeks and that the company's staff of about 85 in metro Detroit would soon swell in line with a predicted increase in demand — though that remains in question with a stagnant market. Mullen will close its engineering base in Irvine, Calif., and consolidate it to the company's tech center near Detroit in Troy, Mich., where 40 to 50 employees will be added, Michery said. 'I want all engineering, all manufacturing, everything in the state of Michigan,' he said. While Michery serves as CEO of Bollinger Motors, the company's daily operations will be overseen by James Taylor. After departing in March, Taylor will return to the company as a consultant. One priority is cleaning up the company's supply chain. Bollinger Motors has been sued by several suppliers claiming they were being stiffed by the startup. Michery said he is in the process of paying debts, including to contract manufacturer Roush, which makes the Class 4 trucks for Bollinger. Mullen's earnings reports to the Securities and Exchange Commission seem to indicate big financial trouble. It lost $162 million on revenue of $7.9 million in the first quarter and the company posted a $115 million loss on revenue of $2.9 million in the prior quarter. In May, Mullen Automotive lost its 675,000-square-foot former AM General factory in Mishawaka, Ind., to settle a financial dispute with creditor GEM Yield Bahamas Ltd. However, Michery said Mullen has ample liquidity, including a $150 million equity line allowing the company to use its stock as currency — an instrument approved by the SEC and shareholders. 'Picture a credit card,' he said. 'Mullen has a $150 million credit card that it can use at will.' Mullen's 1-for-100 reverse stock split executed Monday was designed to bring its stock price above $1 per share to meet Nasdaq requirements. Financial adviser Alex Calderone said the move is window dressing and does not solve underlying business performance issues. 'I would not surmise that would impact company valuation at all or shareholder rights at all,' Calderone said. 'It just appears to be a cosmetic change to be able to adjust the share price. … It's like if I traded you a hundred dollar bill for a hundred singles.' On June 4, Mullen Automotive's stock shot up to above $16 per share, tripling its value over the course of a day, as Michery pointed out after pulling up the market summary on his phone. 'They knew we were coming out here to put Bollinger back in business,' he said. Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Sign in to access your portfolio
Yahoo
6 days ago
- Automotive
- Yahoo
Electric truck startup Bollinger exits bankruptcy after paying back founder who sued
Electric truck startup Bollinger Motors has exited U.S. bankruptcy court thanks to more financial aid from parent Mullen Automotive Inc., whose chief has ambitious plans for a rebound set in Michigan. California-based Mullen acquired an additional 21 percent of Bollinger, bringing its ownership stake in the suburban Detroit company to 95 percent, Mullen announced June 2 as it executed its second reverse stock split in as many months to stay compliant with Nasdaq rules on share prices. In tandem with Mullen's transaction, Bollinger was discharged from bankruptcy court, its receiver removed and case dismissed with prejudice, according to a filing in U.S. District Court in Detroit. Mullen Automotive CEO David Michery said the company paid $11 million to Robert Bollinger, who in March sued the company he founded, claiming it was broke and seeking to recover his loan. Sign up for the weekly Automotive News Mobility Report newsletter for the latest developments at the intersection of transportation and technology. Mullen, which has faced a host of financial issues beyond Bollinger, is all-in on the EV startup, Michery said June 4 during an interview with Automotive News and affiliate Crain's Detroit Business. Bollinger Motors — despite the spat with its namesake — will persevere as a brand that 'will outlast everyone,' Michery vowed at the startup's Oak Park, Mich., headquarters. 'You can't blame Bollinger for the current market, you can't blame Bollinger for tariffs, you can't blame Bollinger for the disruption that occurred with Robert filing this frivolous lawsuit,' Michery said. 'That hurt the company.' Now, Mullen is putting its chips on Bollinger Motors to weather the storm. Michery said production of Class 4 trucks would resume in 8 to10 weeks and that its staff of about 85 in metro Detroit would soon swell in line with a predicted increase in demand — though that remains in question with a stagnant market. Mullen will close its engineering base in Irvine, Calif., and consolidate it to the company's tech center near Detroit in Troy, Mich., where 40-50 employees will be added, Michery said. 'I want all engineering, all manufacturing, everything in the state of Michigan,' he said. While Michery serves as CEO of Bollinger Motors, the company's daily operations will be overseen by James Taylor, who will return to the company as a consultant after departing in March. Another priority is cleaning up the company's supply chain. Bollinger Motors has been sued by several suppliers claiming they were being stiffed by the startup. Michery said he is in the process of paying debts, including to contract manufacturer Roush, which makes the class 4 trucks for Bollinger. Mullen's earnings reports to the SEC seem to indicate big financial trouble. It lost $162 million on revenue of $7.9 million in the first quarter; it posted a $115 million loss on revenue of $2.9 million in the prior quarter. The company lost its 675,000-square-foot former AM General factory in Mishawaka, Ind., last month to settle a financial dispute with creditor GEM Yield Bahamas Ltd. However, Michery said the company has ample liquidity, including a $150 million equity line allowing the company to use its stock as currency — an instrument approved by the SEC and shareholders. 'Picture a credit card,' he said. 'Mullen has a $150 million credit card that it can use at will.' Mullen's 1-for-100 reverse stock split executed Monday was designed to bring its stock price above $1 per share to meet Nasdaq requirements. Financial adviser Alex Calderone said the move is window dressing and does not solve underlying business performance issues. 'I would not surmise that would impact company valuation at all or shareholder rights at all,' Calderone said. 'It just appears to be a cosmetic change to be able to adjust the share price. … It's like if I traded you a hundred dollar bill for a hundred singles.' On Wednesday, Mullen's stock shot up to above $16 per share, tripling its value over the course of a day, as Michery pointed out after pulling up the market summary on his phone. He said: 'They knew we were coming out here to put Bollinger back in business.' Have an opinion about this story? Tell us about it and we may publish it in print. Click here to submit a letter to the editor. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
19-03-2025
- Business
- Associated Press
ROSEN, A LEADING LAW FIRM, Encourages Mullen Automotive, Inc. f/k/a Net Element, Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - MULN, NETE
New York, New York--(Newsfile Corp. - March 19, 2025) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Mullen Automotive, Inc. f/k/a Net Element, Inc. (NASDAQ: MULN) (NASDAQ: NETE) between February 3, 2023 and March 13, 2024, both dates inclusive (the 'Class Period'), of the important April 14, 2025 lead plaintiff deadline. SO WHAT: If you purchased Mullen securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO NEXT: To join the Mullen class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than April 14, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that: (1) Mullen had no intent of implementing a reverse stock split when in-fact the Chief Executive Officer David Michery ('CEO' or 'Michery'), and Mullen believed one was imminent and necessary; (2) Mullen overstates its deals with business partners, including Rapid Response Defense Systems ('RRDS') and Mullen Advanced Energy Operations, LLC ('MAEO'); (3) Mullen overstates its battery technology capabilities and partnerships (i.e., Lawrence Hardge related allegations); (4) Mullen misled the investing public about its reverse splits; (5) Mullen and Michery knew or should have known about Lawrence Hardge's previous convictions for financial crimes and moral turpitude and disclosed this information to investors; (6) Mullen failed to disclose material information about its financing agreements; and (7) as a result, defendants' public statements were materially false and/or misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages. To join the Mullen class action, go to call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Attorney Advertising. Prior results do not guarantee a similar outcome. ------------------------------- Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653
Associated Press
01-03-2025
- Business
- Associated Press
Faruqi & Faruqi Reminds Mullen Automotive Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of April 14, 2025
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $75,000 In Mullen To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $75,000 in Mullen between February 3, 2023 and March 13, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). New York, New York--(Newsfile Corp. - March 1, 2025) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Mullen Automotive, Inc. ('Mullen' or the 'Company') (NASDAQ: MULN) and reminds investors of the April 14, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Mullen had no intent of implementing a reverse stock split when in-fact the Chief Executive Officer David Michery ('CEO' or 'Michery'), and Mullen believed one was imminent and necessary; (2) Mullen overstates its deals with business partners, including Rapid Response Defense Systems ('RRDS') and Mullen Advanced Energy Operations, LLC ('MAEO'); (3) Mullen overstates its battery technology capabilities and partnerships (i.e., Lawrence Hardge related allegations); (4) Mullen misled the investing public about its reverse splits; (5) Mullen and Michery knew or should have known about Lawrence Hardge's previous convictions for financial crimes and moral turpitude and disclosed this information to investors; (6) Mullen failed to disclose material information about its financing agreements; and (7) as a result, defendants' public statements were materially false and/or misleading at all relevant times. Throughout the course of the Company's false and/or misleading statements and omissions discussed above, Mullen's stock price fell over $3.25 per share, or 96%, to close at approximately $.015 per share on March 13, 2024, on unusually heavy trading volume, damaging investors. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding Mullen's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the Mullen Automotive class action, go to or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
