BREA, Calif. – Mullen Automotive Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced a significant expansion of its dealership network through its Boston-area dealer, Eco Auto. The dealer is set to broaden its reach, covering Pennsylvania, Connecticut, Rhode Island, New Hampshire, Maine, and Vermont, to capitalize on the increasing demand for commercial EVs.
Eco Auto, which specializes in EV sales, has committed to purchasing 180 vehicles, including 130 Class 1 EV cargo vans and 50 Class 3 EV trucks, valued at approximately $7.7 million over the next 18 months. The new fleet deliveries are scheduled to commence in September 2024, as the dealer aims to support Mullen’s full line of commercial electric vehicles in these regions.
Al Salas, CEO of Eco Auto, emphasized the market's positive response to Mullen's product line, which is seen as filling a gap for cost-effective and sustainable short-distance delivery solutions for businesses. David Michery, CEO and chairman of Mullen Automotive, echoed this sentiment, highlighting the versatility of their commercial EVs for various sectors.
The Mullen ONE and Mullen THREE models, both compliant with U.S. Federal Motor Vehicle Safety Standards, the Environmental Protection Agency, and California Air Resources Board (CARB) certifications, are at the forefront of this expansion. The Mullen THREE has qualified for a $15,000 incentive through Massachusetts' MOR-EV program and a $45,000 cash rebate voucher through California's HVIP program. The Mullen ONE is also eligible for a $3,500 MOR-EV incentive in Massachusetts.
Mullen Automotive, headquartered in Southern California, operates two U.S.-based vehicle plants and has been actively expanding its commercial dealer network, which includes Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, and now Eco Auto. This network provides sales and service coverage in key U.S. markets, including the Midwest, West Coast, Pacific Northwest, and New England.
The company has also secured Foreign Trade Zone status for its Tunica, Mississippi manufacturing center, offering benefits such as duty deferment and elimination on exported vehicles.
This announcement is based on a press release statement and reflects the company's current plans and expectations for the expansion of its commercial EV footprint across the United States.
In other recent news, Mullen Automotive has made several strides in its operations. The company has named John Taylor as the President of the Commercial EV division, following his significant contributions including the successful launch of Mullen's commercial EV lines, Mullen ONE and Mullen THREE. Mullen Automotive has also received a $304,000 order for 29 units of the Mullen GO from international distributor GAMA.
In a bid to attain carbon neutrality by 2040, DB Schenker has integrated four Mullen CAMPUS electric cargo vans into its operations at the Intel (NASDAQ:INTC) technology campus. Mullen Automotive's subsidiary, Bollinger Motors, announced comprehensive warranty coverage for its upcoming Bollinger B4 Chassis Cab.
The company has also launched the POWER BOOST program, offering customers an upgrade to solid-state polymer battery packs for their Class 1 EV cargo vans. This development is expected to extend their driving range to over 200 miles.
Bollinger Motors has received EPA certification for the B4 Chassis Cab, a Class 4 electric commercial truck, and secured a deal to supply Momentum with 80 of these trucks. Lastly, Mullen Automotive has appointed Alain Van Munster as Vice President of Sales for Europe, Middle East, and Africa, marking the company's expansion into these markets. These are all recent developments in the operations of both Mullen Automotive and Bollinger Motors.
InvestingPro Insights
As Mullen Automotive Inc. (NASDAQ: MULN) ramps up its dealership network expansion with Eco Auto, the financial metrics and market performance of the company provide a backdrop for understanding its position in the electric vehicle industry. According to InvestingPro data, Mullen Automotive holds a market capitalization of $19.27 million, indicative of its size relative to peers in the sector. Despite ambitious plans for growth, the company's financials reflect challenges, with a negative price-to-earnings (P/E) ratio of -0.01 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at -0.03, highlighting the company's current lack of profitability.
The Price / Book ratio, sitting at 0.19 for the same period, suggests that the stock is trading at a low valuation in relation to the company's book value, which may be of interest to value-oriented investors. This aligns with one of the InvestingPro Tips that points out Mullen Automotive is trading at a low Price / Book multiple.
InvestingPro Tips further reveal that Mullen Automotive is a niche player in the electric vehicle industry, which could explain its targeted approach to dealership expansion. The company's stock has also been highlighted as trading near its 52-week low, which might attract investors looking for potential turnaround opportunities, especially when considering the company's strategic initiatives.
For investors seeking a deeper dive into Mullen Automotive's performance and strategic outlook, there are additional InvestingPro Tips available at InvestingPro. These tips provide a comprehensive analysis of the company's financial health, stock performance, and industry positioning, which can be crucial for making informed investment decisions.
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