Mullen Files For Foreign Trade Zone Status In Tunica, Mississippi; Estimates That Resulting Deferred Working Capital On Domestic Sales Could Result In Deferred Capital Outlays Of $10M For The Remainder Of FY24
Portfolio Pulse from Benzinga Newsdesk
Mullen Automotive, Inc. (NASDAQ: MULN), an electric vehicle manufacturer, has filed for Foreign Trade Zone status in Tunica, Mississippi, aiming to improve cash flow by deferring taxes, fees, and import duties. The company anticipates a decision within 30 to 90 days and estimates a deferral of $10 million in capital outlays for FY 2024. FTZ status would also enhance global competitiveness and supply chain performance, with significant benefits for both domestic and international sales.
April 01, 2024 | 12:04 pm
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POSITIVE IMPACT
Mullen Automotive's FTZ application could significantly improve cash flow by deferring $10M in capital outlays for FY24, enhancing global competitiveness and supply chain performance.
The filing for FTZ status by Mullen Automotive is likely to have a positive short-term impact on its stock price due to the anticipated improvements in cash flow and competitive advantages in both domestic and international markets. The deferral of $10 million in capital outlays for FY24 could significantly enhance the company's financial flexibility, making this news highly relevant and important to investors. The confidence in this analysis is based on the clear financial benefits outlined in the application and the strategic importance of the FTZ status for Mullen's operations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100