Bollinger Motors Faces Lawsuit from Robert Bollinger Over Unpaid Interest: Unresolved Bankruptcy Predicament?
In the electric vehicle industry, Bollinger Motors, operating under the Mullen brand and recently rebranded as Bollinger Innovations, is currently grappling with significant financial challenges. The company reported a net loss of $114.9 million in Q1 2025, with only $3 million in revenue, and a cash burn rate of around $50 million per quarter [1].
To address these issues, Bollinger Innovations has undertaken a series of cost-cutting measures. The company has eliminated 155 positions and reduced operating expenses by at least $35 million annually through consolidation of operations primarily in Michigan [2][3]. The focus is now on commercial electric vehicle segments (Class 1, 3, and 4 vehicles) under the Bollinger brand to increase operational efficiency and improve profitability.
These restructuring efforts have been accompanied by a name change to Bollinger Innovations and the centralization of sales, marketing, and service operations, aiming for a pathway toward sustainability [2][3]. However, the company's stock has suffered from severe illiquidity and value erosion, with a market cap shrinking to about $1.6 million after a drastic stock price plunge [1].
One of the key challenges facing Bollinger Innovations is a $10 million loan extended by Bollinger to the company in October, with interest-only payments of $125,000 due periodically. The first payment, due on Feb. 28, was not made within the contractual grace period, leading to a lawsuit seeking the appointment of a receiver to oversee the company's assets and ensure repayment to creditors [4].
The lawsuit also claims that the total value of the completed trucks exceeds $5 million. However, it remains unclear how many of these trucks have been delivered to fleet operators, as production has been temporarily halted [5].
In a twist of events, Bollinger Motors' founder, Robert Bollinger, is suing the company, alleging insolvency and non-payment of financial obligations [6]. The company is also reportedly facing additional lawsuits from at least two suppliers [7].
Despite these challenges, Bollinger Motors has announced a strategic partnership with EO Charging for comprehensive electrification solutions for commercial fleet customers [8]. The partnership includes access to charger installation, advanced management software, and 24/7 support.
As Bollinger Innovations navigates these financial difficulties, it remains to be seen how the company will emerge from this period of restructuring and whether it can secure the necessary funding to continue its operations and deliver on its promises.
Sources: [1] Seeking Alpha (2025). Mullen Automotive Inc. (MULN) Q1 2025 Earnings Call Transcript. [2] BusinessWire (2025). Bollinger Motors Announces Strategic Restructuring and Name Change to Bollinger Innovations. [3] PR Newswire (2025). Bollinger Motors Announces New Leadership and Strategic Focus. [4] Law360 (2025). Bollinger Motors Sued by Founder Over $10M Loan. [5] Green Car Reports (2025). Bollinger Motors Halts Production of Electric Trucks. [6] The Drive (2025). Robert Bollinger Sues Bollinger Motors. [7] Electrek (2025). Bollinger Motors Faces More Lawsuits from Suppliers. [8] PR Newswire (2025). Bollinger Motors Partners with EO Charging for Commercial Fleet Solutions.
- To bolster its financial standing, Bollinger Innovations is pursuing investments in the technology sector, aiming to explore innovative financial solutions that can help address their current cash burn rate.
- As Bollinger Innovations ventures into the commercial electric vehicle segments under the Bollinger brand, the company intends to leverage partnerships in the technology industry, particularly in finance, to enhance its operational efficiency and secure future funding.
