BREA, Calif. – Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, reported that its subsidiary Bollinger Motors has entered into a sales agreement with Spencer Manufacturing for five Bollinger B4 electric trucks. The deal, valued at approximately $825,000, will see the B4 trucks upfitted into fire rescue vehicles.
Spencer Manufacturing, a specialist in the customization of emergency vehicles, will receive the Class 4 commercial trucks after Bollinger commences production in the latter half of 2024. Known for its patented Solid-Poly® construction process, Spencer delivers corrosion-resistant and high-impact vehicles with a lifetime warranty on the substructure, body, and tank.
Grant Spencer, the president of Spencer Manufacturing, expressed confidence in the engineering of the Bollinger B4, citing its suitability for emergency services. Jim Connelly, chief revenue officer for Bollinger Motors, echoed this sentiment, highlighting the B4's durability and reliability as crucial for public safety vehicles.
The Bollinger B4 Chassis Cab is a purpose-built, battery-electric, zero-emissions truck designed with input from fleet operators and upfitters. It features a unique chassis that safeguards the 800-volt battery, offering capability and flexibility for commercial use. Bollinger Motors has recently qualified for federal clean vehicle purchasing incentives under the Inflation Reduction Act, which could provide $40,000 in refundable tax credits per truck.
Mullen Automotive has made significant strides in the EV market, with two U.S.-based vehicle plants and a range of commercial electric vehicles already in production or approved for sale. The company has expanded its dealer network and secured Foreign Trade Zone status for its Tunica manufacturing center, which offers various benefits, including duty deferments.
This sales agreement with Spencer Manufacturing is part of a series of recent achievements for Bollinger Motors, which include sales to Momentum Groups and EnviroCharge, partnerships with various service centers and suppliers, and certification from the Environmental Protection Agency.
The information in this article is based on a press release statement from Bollinger Motors.
In other recent news, Mullen Automotive has made its first commercial electric vehicle (EV) sale in Massachusetts. The sale was facilitated through its dealership partner, Eco Auto, marking Mullen's entry into the New England market.
The company's commercial EV lineup includes the Mullen ONE, a Class 1 cargo van, and the Mullen THREE, a Class 3 cab chassis truck. Both models meet U.S. Federal Motor Vehicle Safety Standards and have received certifications from the Environmental Protection Agency and the California Air Resources Board.
Mullen's subsidiary, Bollinger Motors, has achieved a regulatory milestone by obtaining the Certificate of Conformity from the Environmental Protection Agency for its B4 Chassis Cab, a Class 4 electric commercial truck. In addition, Bollinger Motors has sold 80 all-electric Class 4 commercial trucks to Momentum, a fleet management and EV charging solutions company.
Among other recent developments, Mullen Automotive's Mullen THREE EV truck has become eligible for a $15,000 state rebate in Massachusetts, and the company has expanded its dealership network through a partnership with Eco Auto in New England.
Mullen Automotive has also extended its reach into the European EV market with the appointment of Alain Van Munster as Vice President of Sales for Europe, Middle East, and Africa.
InvestingPro Insights
As Mullen Automotive (NASDAQ: MULN) advances in the electric vehicle industry with new sales agreements and strategic partnerships, it's essential to consider the company's financial health and market performance. With a market capitalization of $36.71 million and a Price / Book ratio of 0.39 as of the last twelve months ending Q2 2024, Mullen exhibits a valuation that may attract investors looking for potentially undervalued stocks.
One InvestingPro Tip notes that Mullen's management has been actively buying back shares, which can be a sign of confidence in the company's future prospects. Moreover, Mullen holds more cash than debt on its balance sheet, which could provide financial flexibility and resilience. These factors may be particularly relevant as the company scales up production and expands its market reach.
Still, the company's recent financial metrics indicate challenges as well. Mullen has reported a negative gross profit margin of -501.56% and a significant operating income loss of $282.94 million for the same period.
The stock has experienced a sharp price decline over the past year, with a one-year total return of -98.67% as of the latest data. This suggests that while there may be potential for recovery, investors should be aware of the risks associated with high volatility and financial performance concerns.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics on Mullen Automotive. Readers can explore these by visiting https://www.investing.com/pro/MULN and can benefit from an exclusive offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With 19 additional InvestingPro Tips available, investors can gain a comprehensive understanding of Mullen's position in the electric vehicle market and make informed decisions.
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