How MULN (Mullen Automotive) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a electric vehicle manufacturer like Mullen Automotive makes money is essential for investors and anyone interested in the business of electric vehicles. In this post, we break down Mullen Automotive's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Mullen Automotive Overview

Mullen Automotive operates as an electric vehicle manufacturer focused on developing and producing commercial and passenger EVs, including vans, trucks, and sedans. Revenue comes primarily from vehicle sales and limited production deliveries. The company is in early-stage growth, emphasizing R&D for battery technology and vehicle platforms amid a competitive EV market.

Revenue Breakdown

• Total Revenue (Q2 2025): $0.001B (+150% YoY)
  • Vehicle Sales: $0.0008B (80% of total)
  • Other (parts/services): $0.0002B (20% of total)
  • Growth is powered by initial commercial deliveries and scaling production.

Gross Profit and Margins

• Gross Profit: -$0.003B (-300% gross margin)
  • Cost of Revenue: $0.004B (+200% YoY)
  • Mullen Automotive maintains negative margins due to high production scaling costs, supply chain inefficiencies, and low-volume manufacturing.
• Most costs come from raw materials, manufacturing overhead, and prototype development.

Operating Income and Expenses

• Operating Income: -$0.045B (-4500% YoY, -4500% margin)
• Operating Expenses: $0.042B (+25% YoY)
  • R&D: $0.018B (+30% YoY, 1800% of revenue) — investments in battery tech, next-gen EV platforms, and autonomy features
  • SG&A: $0.024B (+22% YoY, 2400% of revenue) — sales expansion, administrative overhead, and marketing for market entry
  • Mullen Automotive continues to prioritize innovation while expanding operations in a capital-intensive EV sector.

Net Income

• Pre-Tax Income: -$0.046B (-4600% YoY, -4600% margin)
• Income Tax: $0B (0% effective tax rate)
• Net Income: -$0.046B (-4600% YoY, -4600% net margin)
• Mullen Automotive converts a negative portion of sales into profit due to heavy upfront investments and pre-revenue scaling challenges.

What Drives Mullen Automotive's Money Machine?

• Vehicle Sales: 80%+ of revenue from initial deliveries of commercial EVs like the Mullen ONE van
• Production Volume: Deliveries remain low at under 100 units quarterly, limiting scale
• R&D Investments: Focus on solid-state batteries and Class 3 trucks to differentiate in EV space
• Future growth areas: Passenger EVs and fleet contracts, though not yet profitable

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Visualizing Mullen Automotive's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into cost of revenue, with operating expenses (especially SG&A) taking the largest chunk.
• Even after large investments, negative margins highlight cash burn in early growth phase.

Key Takeaways

• Mullen Automotive's money comes overwhelmingly from vehicle sales
• Negative gross and net margins illustrate the challenges of Mullen Automotive's pre-scale EV manufacturing model
• Heavy investment in R&D, balanced by efficiency efforts in operating costs
• Ongoing growth is driven by production ramp-up and new model launches

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FAQ About Mullen Automotive's Income Statement

1. What is the main source of Mullen Automotive's revenue in 2025?

Mullen Automotive generates over 80% of its revenue from vehicle sales. Additional revenue sources include minor parts and services at 20%.

2. How profitable is Mullen Automotive in Q2 2025?

Mullen Automotive reported net income of -$0.046B in Q2 2025, with a net margin of approximately -4600%, reflecting weak profitability driven by high R&D and production costs in early-stage operations.

3. What are the largest expense categories for Mullen Automotive?

The biggest expenses on Mullen Automotive's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached $0.018B in Q2 2025, as Mullen Automotive prioritizes battery innovation and vehicle development.

4. Why does vehicle production operate at a loss?

Vehicle sales, despite generating $0.0008B in revenue, posted an operating loss of over $0.004B in Q2 2025. This is because Mullen Automotive aggressively invests in manufacturing scale-up and supply chain, believing these will drive long-term growth—even if unprofitable today.

5. How does Mullen Automotive's effective tax rate compare to previous years?

Mullen Automotive's effective tax rate in Q2 2025 was 0%, consistent with previous years. This low rate is primarily due to net operating losses and no taxable income in the development phase.