BREA, Calif. – Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has secured a $3.2 million purchase order from Papé Kenworth for a fleet of commercial EVs, the company announced Monday. The order comprises 43 Class 3 EV trucks and 7 Class 1 EV cargo vans, with immediate delivery commencement.
Papé, a prominent West Coast commercial vehicle dealer, recently joined Mullen's commercial EV dealer network as its seventh franchise partner. The partnership is expected to expand Mullen's market reach for its commercial EVs, including the Mullen ONE and Mullen THREE models, through Papé's extensive sales and service network that spans over 30 locations.
The vehicles included in the order feature various body types tailored for diverse commercial applications, such as stake body, service body, and box truck configurations. Additionally, Papé's order encompasses a supply of Class 1 and Class 3 parts to facilitate quick warranty service and repairs.
Mullen's EV models, which are fully compliant with U.S. Federal Motor Vehicle Safety Standards, EPA, and CARB certifications, have also qualified for significant incentives. The Mullen THREE is eligible for a $15,000 incentive through Massachusetts' MOR-EV program and a $45,000 cash rebate voucher in California through the HVIP program. The Mullen ONE qualifies for a $3,500 rebate in Massachusetts, coupled with a $7,500 Federal Tax Incentive, offering considerable savings for commercial fleets.
The partnership with Papé aligns with Mullen's strategy to provide accessible, innovative electric vehicles and Papé's commitment to delivering a range of transportation solutions. David Michery, CEO and chairman of Mullen Automotive, highlighted Papé's influence and expertise as pivotal for establishing new customer relationships across the United States.
Mullen Automotive continues to enhance its commercial EV production and distribution capabilities, with manufacturing centers in Mississippi and Indiana and a growing dealer network. The company's recent expansions and regulatory approvals underscore its efforts to position itself in the competitive EV market.
This news is based on a press release statement from Mullen Automotive, Inc.
In other recent news, Mullen Automotive, an emerging electric vehicle manufacturer, has made significant strides in its operations. The company has expanded its U.S. dealer network and commenced production of commercial electric vehicles. This includes the Bollinger B4 electric truck, produced by its subsidiary Bollinger Motors, which has received sales approval in all U.S. states. Mullen Automotive has also transitioned from pre-revenue product development to revenue generation, with positive sales margins across three vehicle lines.
The company has secured substantial orders domestically and internationally, including a $210 million order from Volt Mobility. In addition to these developments, Mullen Automotive has expanded its employee equity incentive program and initiated a 1-for-100 reverse stock split. The company has also issued shares to Esousa Holdings LLC and Silverback Capital Corporation.
Mullen Automotive has begun EV deliveries in the UAE as part of a $210 million contract with Volt Mobility. The company's vehicles have received certification from the California Air Resource Board and the Environmental Protection Agency, making them eligible for federal EV tax credits and cash vouchers for customers in the United States. The Bollinger B4 Chassis Cab has been priced at $158,758, with customer deliveries anticipated to begin in October 2024. These are the recent developments in Mullen Automotive's operations.
InvestingPro Insights
As Mullen Automotive, Inc. (NASDAQ: MULN) makes strides in expanding its commercial electric vehicle (EV) offerings and dealer network, financial metrics and market performance provide a broader context for investors evaluating the company's prospects. According to InvestingPro data, Mullen's Market Capitalization stands at a modest $7.41 million, reflecting the size and scale of the company within the EV industry. Despite securing a significant order, Mullen's Revenue for the last twelve months as of Q3 2024 was just $0.16 million, with a sharp decline in revenue growth of -49.17%. This suggests challenges in scaling up operations and generating sales.
InvestingPro Tips indicate that Mullen may face difficulties making interest payments on its debt, a concern for investors given the company's financial position. Additionally, the Relative Strength Index (RSI) suggests that Mullen's stock is currently in oversold territory, which could interest traders looking for potential rebounds. However, the low Price / Book multiple of 0.21 may reflect market skepticism about the company's asset value or concerns about its future profitability.
For investors seeking more detailed analysis, InvestingPro offers an additional 19 tips on Mullen Automotive, providing a comprehensive look at factors such as cash burn rate, trading volatility, and gross profit margins. These insights are available at https://www.investing.com/pro/MULN, offering investors a valuable tool for making informed decisions in the dynamic EV market.
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