BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an electric vehicle manufacturer, announced a partnership between its subsidiary Bollinger Motors and EnviroCharge to provide innovative mobile charging solutions for electric vehicle fleet owners. The deal, valued at approximately $8.25 million, involves the sale of 50 Bollinger B4 all-electric commercial trucks, which will be equipped with EnviroCharge's clean-propane-powered charging system.
The collaboration aims to address the growing demand for convenient and flexible charging options for electric vehicles (EVs), particularly in fleet operations. EnviroCharge plans to offer these mobile charging units to fleet owners in states that offer voucher incentive programs. Moreover, these vehicles will qualify for the $40,000 federal tax credit under the Inflation Reduction Act, further incentivizing the transition to clean transportation.
Robert Bollinger, founder and CEO of Bollinger Motors, expressed that the partnership aligns with their vision to revolutionize the transportation industry by providing cost-effective and emission-reducing solutions. EnviroCharge's CEO, Charlie Stockton, also highlighted the significance of this step for their customers, offering a clean-fuel EV charging solution mounted on a zero-emission vehicle.
The vehicles are expected to be delivered to EnviroCharge after Bollinger Motors initiates production in the latter half of 2024. This deal follows a series of recent strategic partnerships and qualifications for federal clean-vehicle purchasing incentives by Bollinger Motors.
EnviroCharge, known for its renewable fuel technologies and commitment to energy equity, will leverage this new offering to enhance its portfolio of EV charging solutions. Bollinger Motors, since becoming a majority-owned subsidiary of Mullen Automotive in September 2022, has been expanding its all-electric commercial truck offerings.
This news is based on a press release statement and reflects a strategic move by Mullen Automotive and Bollinger Motors to expand their footprint in the EV market, particularly for commercial fleet owners seeking sustainable and convenient charging solutions.
InvestingPro Insights
In light of Mullen Automotive's recent partnership announcement, it's pertinent to consider the company's financial health and market performance. Mullen Automotive (NASDAQ: MULN) holds a market capitalization of $49.25 million, reflecting its size within the electric vehicle sector. Despite an aggressive share buyback strategy, as indicated by one of the InvestingPro Tips, the company's stock has experienced a notable decline over the past year, with a one-year price total return of -99.5%.
Another InvestingPro Tip highlights that Mullen Automotive maintains more cash than debt on its balance sheet, which could be a stabilizing factor amidst the cash burn issues the company faces. This is particularly relevant as the company prepares for the production and delivery of the Bollinger B4 trucks. Still, the company's gross profit margin stands at -254.49% for the last twelve months as of Q2 2024, underscoring the financial challenges it may have to overcome to achieve profitability.
The stock's current price stands at $4.32, with a significant one-month price total return of 69.22%, indicating recent positive momentum. Investors considering MULN as a potential addition to their portfolios can find additional insights and a total of 17 InvestingPro Tips on InvestingPro. For those looking to delve deeper into the company's analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a comprehensive suite of tools to assess investment opportunities.
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