BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced a new partnership with Pritchard EV, a major player in the commercial EV space, to distribute Mullen's commercial EV lineup across the United States. This move is aimed at bolstering the company's U.S. dealer network and enhancing the accessibility of its electric vehicles to fleet customers.
Pritchard EV, known for its leadership in fleet sales and commercial EV adoption, is now an authorized franchise partner for Mullen and will immediately offer Mullen's EV models, including the Mullen ONE and Mullen THREE, to its customers. The Mullen ONE is a Class 1 EV cargo van, and the Mullen THREE is a Class 3 EV cab chassis truck, both designed to meet the specific needs of urban last-mile delivery services.
David Michery, chairman and CEO of Mullen Automotive, expressed confidence in the partnership, highlighting Pritchard EV's expertise in fleet electrification and infrastructure. Angela Pritchard Spiteri, Chief Operating Officer of Pritchard Companies, reciprocated the sentiment, praising Mullen's reputation for quality and suitability for their fleet customers.
Mullen's commercial EVs are fully compliant with U.S. Federal Motor Vehicle Safety Standards and have received the necessary EPA and California Air Resource Board (CARB) certifications. The company has initiated training programs for Pritchard EV's team to facilitate the ordering, upfitting, and servicing of these vehicles.
This strategic alliance comes on the heels of Mullen's recent milestones, including the start of commercial vehicle production in Tunica, Mississippi, in August 2023, and the receipt of IRS approval for federal EV tax credits for its commercial vehicles in September 2023.
The partnership is expected to leverage Pritchard EV's extensive network and expertise to address common challenges faced by fleets, such as logistics and vehicle registration, and to provide sustainable mobility solutions.
This announcement is based on a press release statement from Mullen Automotive, and it represents a step forward in the company's efforts to expand its commercial EV presence in the U.S. market.
InvestingPro Insights
In light of Mullen Automotive's (NASDAQ: MULN) recent partnership with Pritchard EV, it's important to consider the company's financial health and market performance. Mullen's aggressive strategy, as evidenced by management's share buyback initiative, reflects a commitment to increasing shareholder value. This is a positive sign for investors, especially when coupled with the fact that the company holds more cash than debt on its balance sheet, showcasing a degree of financial stability.
InvestingPro Tips for Mullen highlight that the company is trading at a low Price / Book multiple of 0.2, which could suggest that the stock is undervalued relative to its book value. However, with a significant cash burn and weak gross profit margins, as indicated by a gross profit margin of -458.51% for the last twelve months as of Q1 2024, potential investors should be aware of the financial risks associated with the company.
InvestingPro Data metrics further reveal the company's current market position with a modest Market Cap of 39.08M USD, and a noteworthy one-week price total return of 66.84%, signaling a strong performance over the short term. Despite these gains, the company's year-to-date price total return stands at -55.98%, reflecting volatility and the challenges it has faced over a longer period.
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