BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an electric vehicle (EV) manufacturer, has announced that its subsidiary Bollinger Motors is now eligible for the New York Truck Voucher Incentive Program (NYTVIP), which offers up to a $100,000 cash voucher for the all-electric B4 Truck. This makes New York the fourth Northeast state to provide incentives for Bollinger vehicles, with Massachusetts, New Jersey, and Pennsylvania also offering similar programs.
The Bollinger B4 Chassis Cab, a Class 4 commercial truck, has been designed with input from fleet operators and upfitters, emphasizing capability and safety. The vehicle's chassis is engineered to protect its 158-kilowatt-hour battery pack, enhancing its suitability for commercial applications.
Jim Connelly, Bollinger Motors' chief revenue officer, praised the Northeastern states for their efforts to promote sustainable transportation and noted the potential for these incentives to accelerate the adoption of electric technology in commercial fleets.
The Bollinger B4 is also eligible for federal clean vehicle tax credits under the Inflation Reduction Act, amounting to $40,000 per vehicle. When combined with state incentives, this could provide Northeast customers with total incentives ranging from $70,000 to $140,000.
Bollinger Motors has achieved several milestones in recent months, including production launches, regulatory compliance, and sales to various fleet management groups. The company has expanded its dealership and service center network and established partnerships for battery supply, warranty administration, and mobile service provision.
The company's majority owner, Mullen Automotive, operates vehicle plants in Mississippi and Indiana, with recent expansions in its commercial dealer network and approval for Foreign Trade Zone status for its Mississippi manufacturing center.
The financial incentives available for the Bollinger B4 Chassis Cab are part of a broader push to encourage the use of electric vehicles in commercial settings. This article is based on a press release statement.
In other recent news, Mullen Automotive has achieved several significant milestones. The company's subsidiary, Bollinger Motors, delivered three Bollinger B4 electric trucks to TEC Equipment, marking a significant step in establishing its presence on the West Coast. Additionally, Bollinger Motors secured $10 million in debt financing from its founder, Robert Bollinger, to expedite the production of the B4 model. Mullen has also settled about $4.5 million in secured promissory notes through the issuance of 340,000 shares of common stock.
The company has expanded its commercial dealer network by adding Papé Kenworth, enhancing Mullen's sales and service coverage across key U.S. markets. Mullen also issued convertible notes and warrants, raising approximately $12.5 million, and secured significant orders from Papé Kenworth and Volt Mobility, totaling $3.2 million and $210 million respectively.
These are recent developments in Mullen Automotive's operations, which have seen the company transition from pre-revenue product development to revenue generation. Mullen has also launched Mullen Credit Corporation, a subsidiary aimed at supporting its dealership network. The company has regained compliance with Nasdaq's minimum bid price requirement, reflecting its improved financial health.
InvestingPro Insights
While Mullen Automotive's subsidiary Bollinger Motors is making strides in the electric vehicle market with its B4 Truck and expanding incentive programs, the parent company faces significant financial challenges. According to InvestingPro data, Mullen's market capitalization stands at a mere $3.78 million, reflecting investor skepticism about the company's prospects.
InvestingPro Tips highlight that Mullen is "trading near 52-week low" and has "not been profitable over the last twelve months." These factors align with the company's aggressive push into new markets and technologies, which often require substantial upfront investments before generating returns.
The company's financial health appears precarious, with InvestingPro data showing a staggering operating income margin of -185,781.29% for the last twelve months as of Q3 2024. This extreme negative margin suggests that Mullen is spending far more than it's earning, which is not uncommon for early-stage EV companies but raises questions about long-term sustainability.
An InvestingPro Tip warns that Mullen "may have trouble making interest payments on debt," which could be critical as the company seeks to fund its expansion and development plans, including those of Bollinger Motors.
For investors considering Mullen's stock, it's worth noting that InvestingPro offers 19 additional tips that could provide a more comprehensive view of the company's financial situation and market position. These insights could be particularly valuable given the volatile nature of the EV industry and Mullen's current financial metrics.
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