Mullen Automotive Resolves Long-Standing Legal Dispute with GEM Over Mishawaka Assets

Mullen Automotive has successfully negotiated a settlement agreement with GEM Yield Bahamas Limited and GEM Global Yield LLC SCS, effectively concluding a four-year legal dispute over its Mishawaka, Indiana manufacturing assets. The agreement provides GEM with a 55-day due diligence period to evaluate the potential transfer of the Mishawaka facility, with the possibility of extension.

The settlement represents a significant development for Mullen, as it suspends all current collection activities and creates a structured pathway for resolving the long-standing legal challenge. By offering GEM a comprehensive opportunity to assess the Mishawaka assets, Mullen demonstrates a proactive approach to resolving complex legal and financial matters.

Despite the ongoing legal resolution, Mullen remains strategically focused on expanding its manufacturing capabilities in Tunica, Mississippi. The company has already commenced commercial vehicle production at its 120,000-square-foot facility and has achieved critical milestones in the electric vehicle sector. These include receiving IRS approval for federal EV tax credits and obtaining California Air Resource Board and EPA certifications for its Mullen ONE cargo van and Mullen THREE cab chassis truck.

The settlement could have broader implications for Mullen's operational strategy, potentially allowing the company to streamline its manufacturing footprint and allocate resources more efficiently. By potentially transferring the Mishawaka assets, Mullen may be positioning itself to concentrate investments and production efforts in its Tunica facility.

Moreover, Mullen has been actively expanding its commercial dealer network, recently adding Papé Kenworth to its roster of seven dealers. This network provides sales and service coverage across key U.S. markets, including the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions.

The company's recent Foreign Trade Zone status approval for its Tunica manufacturing center further underscores its strategic positioning in the electric vehicle market. This designation offers potential benefits such as duty deferment and elimination of duties on exported vehicles, enhancing the facility's economic attractiveness.

As the electric vehicle industry continues to evolve rapidly, Mullen's resolution of this legal dispute and continued focus on manufacturing and expansion could be crucial in maintaining its competitive position in the market. The settlement represents a potentially pivotal moment for the company's future operational and financial strategies.