Mullen Automotive aims for stability with a new subsidiary

The American electric car manufacturer Mullen Automotive is grasping at new straws in a challenging market environment. The California-based company announced the establishment of a new subsidiary called Mullen Credit Corporation (MCC). This entity is intended to support the company's distribution partners with optimized vehicle financing models. The move aims to meet the increasing demands of the rapidly growing dealer network. In addition to supporting dealers, MCC will also offer flexible financing solutions for fleets and small businesses. This strategic approach is expected to significantly enhance the company's service. As a wholly-owned subsidiary, MCC seamlessly aligns with Mullen's overarching goals and is intended to help create a more comprehensive financial infrastructure offering for customers. The year has been far from rosy for Mullen Automotive. The stock has lost an unprecedented 99.85% of its value. This dramatic downward spiral is largely attributable to general market issues in the electric vehicle sector as well as the failure to deliver on critical promises. Consequently, the stock price is in distress, reflected in a significantly negative Altman Z-score of -25.06. Additionally, there is a dismal profitability rating of 1 out of 10 points according to GuruFocus. These figures highlight the substantial financial challenges facing the company, which will continue to burden its short-term performance.