Mullen Automotive has resolved a legal dispute with Qiantu Motors and secured the rights to distribute and assemble Qiantu’s DragonFLY K50 vehicle in North and South America for the next five years. Under the agreement, Mullen will purchase a certain number of vehicle kits from Qiantu annually, while Qiantu will have the option to purchase up to 75 million shares of Mullen stock (NSD:MULN) through warrants. In addition, Mullen will pay Qiantu $6m to settle past legal issues, acquire the K50’s intellectual property in the Americas, and rebrand it under its Mullen GT and GRS brands. The deal also includes Mullen paying $2m for deliverable items and a $1,200 royalty fee for each homologated vehicle sold in the Americas during the five-year period. In 2019, Mullen sued Qiantu over allegations of breaching their agreement and adding exhibits that were not previously agreed upon. Although Qiantu filed a motion to take the dispute to arbitration, Mullen’s payment of $6m has settled the lawsuit and arbitration proceedings.
Mullen to Distribute Qiantu’s EV Supercar in America
Mullen Automotive, an American electric vehicle (EV) manufacturer, has been granted the rights to distribute the DragonFLY K50 in North and South America. The agreement with Qiantu Motor and its affiliates allows Mullen to assemble and distribute the supercar in the Americas after it has been re-engineered and re-designed to meet US certification requirements and customer expectations. The final assembly will take place in Mishawaka, Indiana. The vehicle will feature an updated powertrain, with a sub-2.0-second 0-60 mph acceleration and a top speed of over 200 mph. It will be sold under the Mullen GT and GTRS brands, following a rebranding and refresh. The deal came after a dispute between the two companies arose over payment obligations, with Mullen filing a lawsuit against Qiantu in 2019. The dispute was settled through arbitration, leading to the current partnership agreement. Chairman Lu of Qiantu Motor said that the Qiantu K50 will provide a superior driving experience to US customers, with sleek design, excellent handling and impressive full carbon fiber exterior. Mullen CEO and Chairman David Michery called the agreement an important milestone for the company and a chance to fulfill his vision for a supercar that rivals some of the best supercars in the world. The GT and GTRS programs are set to begin on March 20, 2023.
Mullen Automotive Stock Forecast
Mullen Automotive Inc. has an average analyst target price of USD 0.65 for the next 12 months, with a Strong Buy rating. However, Stock Target Advisor’s analysis is Slightly Bearish based on 2 positive signals and 4 negative signals. The last closing price for Mullen Automotive Inc was USD 0.14, and the stock has experienced negative changes of -12.50% over the past week, -44.00% over the past month, and -95.64% over the last year.
Company Overview
Mullen Automotive, Inc. is an electric vehicle manufacturer and distributor based in Brea, California. The company specializes in producing and distributing passenger electric vehicles, commercial vehicles, and solid-state polymer battery technology.
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