BREA, Calif. - Mullen Automotive Inc. (NASDAQ:MULN), an electric vehicle manufacturer, has announced a partnership with National Auto Fleet Group (NAFG) to distribute its Bollinger B4 electric commercial trucks to government agencies. The collaboration leverages NAFG's Sourcewell-awarded contract to facilitate sales to this sector.
The Bollinger B4, a Class 4 all-electric commercial truck, is designed with input from fleets and upfitters, featuring a 185-mile range and a payload capacity of 7,394 pounds. Its unique chassis design aims to ensure durability, performance, and safety for commercial use. This vehicle caters to government and municipal fleets, which are typically early adopters of electrification.
NAFG, a vendor specializing in government agency and municipal vehicle supply, considers the Bollinger B4 a significant addition to their portfolio, aligning with the electrification strategies of multiple government organizations.
Bollinger Motors, now a majority-owned subsidiary of Mullen Automotive, has recently achieved regulatory milestones including FMVSS compliance, EPA Certificate of Conformity, and CARB certification. The firm has also secured vehicle agreements with Momentum Group, Doering Fleet Management, and EnviroCharge, among others, and expanded its dealer and service network.
This partnership is anticipated to provide Bollinger Motors with increased access to government contracts, furthering the penetration of electric vehicles in the commercial sector. The Bollinger B4's eligibility for state and federal incentive programs may enhance its market appeal, with potential benefits such as tax credits and cash vouchers for purchasers.
This news is based on a press release statement from Mullen Automotive Inc. and reflects the company's current plans for the distribution and promotion of the Bollinger B4 through NAFG. The company's forward-looking statements involve risks and uncertainties that could affect the actual outcomes and future results.
In other recent news, Mullen Automotive, an electric vehicle manufacturer, has made significant strides in its operations. The company's Class 1 EV cargo van, the Mullen ONE, is now available for rental on Turo, a car-sharing marketplace. The Mullen ONE, along with the Mullen THREE Class 3 EV cab chassis truck, are part of Mullen's commercial EV lineup, designed for urban delivery services. These models are currently available for sale and meet U.S. Federal Motor Vehicle Safety Standards, as well as EPA and CARB certifications.
The subsidiary of Mullen Automotive, Bollinger Motors, has received $10 million in debt financing from founder Robert Bollinger. The funding is aimed at accelerating the production and distribution of the Bollinger B4 electric truck. Mullen Automotive has also settled approximately $4.5 million in secured promissory notes through the issuance of 340,000 shares of common stock.
Bollinger Motors' B4 electric trucks are now eligible for the New York Truck Voucher Incentive Program, which offers up to a $100,000 cash voucher. The Bollinger B4 is also eligible for federal clean vehicle tax credits under the Inflation Reduction Act, potentially providing Northeast customers with total incentives ranging from $70,000 to $140,000.
Mullen Automotive has expanded its commercial dealer network, adding Papé Kenworth, and has secured substantial orders from Papé Kenworth and Volt Mobility, totaling $3.2 million and $210 million respectively. These recent developments mark Mullen Automotive's successful transition from pre-revenue product development to revenue generation.
InvestingPro Insights
As Mullen Automotive Inc. (NASDAQ:MULN) forges ahead with its partnership with National Auto Fleet Group to distribute Bollinger B4 electric commercial trucks, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Mullen's market capitalization stands at a modest $7.36 million, reflecting its current position as a small-cap player in the competitive electric vehicle market. This relatively small size could potentially offer agility in adapting to market demands, but it also underscores the challenges the company faces in scaling its operations.
An InvestingPro Tip highlights that Mullen is "quickly burning through cash," which is particularly relevant given the capital-intensive nature of the automotive industry and the company's ambitious plans for the Bollinger B4. This cash burn rate could impact Mullen's ability to fund its growth initiatives and production ramp-up.
Another InvestingPro Tip notes that the company is "not profitable over the last twelve months." This aligns with the reported operating income margin of -185,781.29% for the last twelve months as of Q3 2023, indicating significant operational challenges. However, it's worth noting that many early-stage EV companies operate at a loss as they invest heavily in research, development, and production capacity.
Investors considering Mullen's stock should be aware that InvestingPro offers 15 additional tips for MULN, providing a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for those looking to make informed investment decisions in the evolving electric vehicle sector.
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