BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer with a market capitalization of approximately $20 million, has received an order for 10 Class 3 EV cab chassis trucks from Associated Coffee, a prominent office coffee service in the San Francisco Bay Area. According to InvestingPro data, the company faces significant financial challenges with negative EBITDA of $268 million in the last twelve months. The order, facilitated by Mullen's newest franchise dealer, Papé Group, supports Associated Coffee's sustainability efforts in their delivery services.
Associated Coffee, with over 40 years of experience serving more than 5,000 businesses in Northern California, has consistently focused on sustainable practices. This includes local sourcing, in-house recycling programs, and innovative de-liming methods for equipment maintenance, avoiding harsh chemicals.
The Mullen THREE, the Class 3 EV truck included in the order, is part of Mullen's commercial EV lineup designed for urban last-mile delivery. While the vehicle is fully compliant with U.S. Federal Motor Vehicle Safety Standards and has received certifications from both the Environmental Protection Agency and the California Air Resources Board, the company's financial metrics reveal challenges, with revenue of just $0.16 million in the last twelve months. InvestingPro subscribers have access to 15+ additional insights about Mullen's financial health and market position. Moreover, the Mullen THREE is eligible for a $45,000 cash rebate voucher through California's HVIP, along with a $7,500 Federal Tax Incentive, offering significant cost savings for commercial fleet operators.
David Michery, CEO and chairman of Mullen Automotive, expressed pride in supporting Associated Coffee's environmental initiatives and operational efficiency with their commercial EVs. The company's commercial EV production commenced in Tunica, Mississippi, in August 2023, followed by the receipt of IRS approval for federal EV tax credits in September 2023.
Mullen's expansion of its commercial dealer network to seven dealers, including the addition of Papé Kenworth, provides sales and service coverage across various U.S. markets. The company's Tunica manufacturing center has also been granted Foreign Trade Zone status, offering additional benefits such as duty deferment and elimination on exported vehicles. Financial analysis from InvestingPro indicates a concerning current ratio of 0.53, suggesting potential challenges in meeting short-term obligations. Discover comprehensive financial analysis and real-time updates with an InvestingPro subscription.
The information for this article is based on a press release statement.
In other recent news, Mullen Automotive's subsidiary, Bollinger Motors, has secured a repeat order for seven B4 all-electric trucks from TEC Equipment. The order, a significant boost to Mullen's revenue, follows an initial purchase of three B4 trucks by TEC Equipment. The latest fleet will be distributed among TEC dealer locations across California, Oregon, and Washington.
In a strategic partnership, Mullen Automotive has teamed up with Emerald Transportation Solutions to develop a refrigerated upfit for the Mullen THREE, a Class 3 all-electric truck. This collaboration is expected to cater to the growing demand for home delivery, frozen food, grocery, and beverage transportation.
Moreover, Mullen Automotive has announced a collaboration with the National Auto Fleet Group to distribute its Bollinger B4 electric commercial trucks to government agencies. This move is expected to increase the penetration of electric vehicles in the commercial sector.
Mullen's Class 1 EV cargo van, the Mullen ONE, is now available for rental on Turo, a car-sharing marketplace, as part of a pilot program in Jacksonville, Florida. Additionally, Bollinger Motors' B4 electric trucks are now eligible for the New York Truck Voucher Incentive Program, offering up to a $100,000 cash voucher. These are the recent developments in Mullen Automotive's operations.
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