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Mullen ONE EV cargo van joins Turo in Florida

Published 11/12/2024, 09:20 AM
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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, announced today that its Class 1 EV cargo van, the Mullen ONE, is now available for rental on Turo, the world's largest car-sharing marketplace. The vehicle will be offered in the Jacksonville, Florida market as part of a pilot program by Parasol Strategic Solutions, a prominent Turo host in the region.

Parasol has observed an increasing demand for compact and efficient cargo vans suitable for urban logistics and sustainability-focused transportation. The Mullen ONE is positioned to meet this market need, offering an eco-friendly and agile option for businesses seeking flexible transportation solutions. Bradley Shaw from Parasol noted the van's suitability for Turo's rental platform, emphasizing the demand for such vehicles in their service offerings.

The Mullen ONE, along with the larger Mullen THREE Class 3 EV cab chassis truck, is part of Mullen's commercial EV lineup designed for urban delivery services. Both models are currently available for sale and meet U.S. Federal Motor Vehicle Safety Standards, as well as EPA and CARB certifications. The Mullen THREE recently became eligible for significant incentives, including a $15,000 rebate through Massachusetts's MOR-EV program and a $45,000 voucher in California through the HVIP program. The Mullen ONE is also eligible for a $3,500 rebate in Massachusetts, which, when combined with the $7,500 Federal Tax Incentive, offers considerable savings to commercial fleet customers.

Mullen Automotive has begun commercial vehicle production in Tunica, Mississippi, and has expanded its commercial dealer network to seven dealers across the United States. The company's growth is further supported by the IRS's approval of federal EV tax credits for its commercial vehicles and the recent Foreign Trade Zone status approval for its Tunica manufacturing center.

This announcement is based on a press release statement from Mullen Automotive. A second pilot for the Mullen Class 1 EV cargo van is planned to launch in Baltimore, Maryland. The company's strategic moves aim to enhance its presence in the EV market and provide sustainable transportation options for businesses of varying sizes.

In other recent news, Mullen Automotive's subsidiary Bollinger Motors has seen significant financial and operational developments. The company has received $10 million in debt financing from founder Robert Bollinger, aimed at accelerating the production and distribution of the Bollinger B4 electric truck. Additionally, Mullen Automotive has settled approximately $4.5 million in secured promissory notes through the issuance of 340,000 shares of common stock.

Bollinger Motors has also begun delivering its B4 electric trucks to several locations, including TEC Equipment and Nacarato Truck Centers. These deliveries are a crucial part of Mullen's transition from pre-revenue product development to revenue generation.

The Bollinger B4 electric truck has been approved for various incentives, including state incentives and federal clean vehicle tax credits under the Inflation Reduction Act, which could provide 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.

The company has also launched the Mullen Credit Corporation, a subsidiary designed to support its dealership network, and has regained compliance with Nasdaq's minimum bid price requirement. These are the recent developments in Mullen Automotive's operations.

InvestingPro Insights

As Mullen Automotive (NASDAQ: MULN) ventures into the car-sharing market with its Mullen ONE EV cargo van, investors should consider some key financial metrics and insights from InvestingPro.

According to InvestingPro data, Mullen's market capitalization stands at a modest $3.65 million, reflecting its status as a niche player in the automotive industry. The company's revenue for the last twelve months as of Q3 2024 was $0.16 million, with a concerning revenue growth decline of -49.17% over the same period.

An InvestingPro Tip highlights that Mullen is "trading at a low Price / Book multiple," which is confirmed by the Price / Book ratio of 0.1 for the last twelve months as of Q3 2024. This could suggest that the stock is undervalued, but it's essential to consider the context of the company's financial health.

Another crucial InvestingPro Tip warns that Mullen "may have trouble making interest payments on debt" and is "quickly burning through cash." These insights are particularly relevant given the company's expansion efforts and the capital-intensive nature of the EV industry.

For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Mullen Automotive, providing a deeper understanding of the company's financial position and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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