Mullen Announces bizEV Lease Program for Class 1 EV Cargo Vans

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) has introduced bizEV, a new lease program for its Mullen ONE Class 1 EV cargo van. The program offers a 3-year lease option starting at $475 per month, plus taxes and fees, including scheduled vehicle maintenance. Targeted at individuals, small businesses, and fleets, bizEV aims to make EV ownership more accessible and affordable.

The Mullen ONE, the first of its kind in the U.S. market, is designed for urban last-mile delivery with a focus on navigating narrow streets while maximizing payload and cargo space. It complies with U.S. Federal Motor Vehicle Safety Standards, EPA, and CARB certifications. The van is currently available for sale at an MSRP of $34,500 through MullenUSA.com and authorized dealerships.

Positive

• Introduction of bizEV lease program, making EV ownership more accessible
• Affordable monthly lease option of $475 including maintenance
• Mullen ONE is the first Class 1 EV cargo van in the U.S. market
• Compliance with U.S. Federal Motor Vehicle Safety Standards, EPA, and CARB certifications

Negative

• None.

Insights

Financial Analyst

Mullen Automotive's introduction of the bizEV lease program for its Class 1 EV cargo van is a strategic move that could potentially boost the company's market penetration and revenue streams. The $475 per month starting price for a 3-year lease, including maintenance, positions the Mullen ONE competitively in the commercial EV market.

This program addresses two critical barriers to EV adoption: upfront costs and maintenance concerns. By offering a lease option, Mullen reduces the initial financial burden for small businesses and individuals, potentially accelerating market adoption. The inclusion of maintenance in the lease package further sweetens the deal, addressing a common concern among potential EV adopters.

However, it's important to note that Mullen is a relatively new player in a highly competitive market. The success of this program will largely depend on the performance and reliability of the Mullen ONE van, as well as the company's ability to establish a robust dealer network and maintenance infrastructure. The $34,500 MSRP for outright purchase also seems competitive, but the lease program could be the real game-changer if it gains traction.

Investors should closely monitor the uptake of this lease program and its impact on Mullen's cash flow and market share in the coming quarters. While promising, it's too early to determine if this will significantly alter Mullen's financial trajectory in the short term.

Automotive Industry Expert

Mullen's bizEV lease program for the Mullen ONE Class 1 EV cargo van represents a significant step in the commercial EV sector. As the first of its kind in the U.S. market, this vehicle fills a important niche in urban last-mile delivery, an area ripe for electrification.

The van's design, optimized for narrow urban streets while maximizing payload, addresses specific needs of the rapidly growing e-commerce and delivery sectors. This targeted approach could give Mullen an edge over competitors who may be focusing on larger commercial vehicles.

However, Mullen faces challenges. As a newcomer, it lacks the established reputation and service network of traditional automakers. The success of the Mullen ONE will heavily depend on its real-world performance, reliability and the company's ability to provide adequate after-sales support.

The compliance with U.S. Federal Motor Vehicle Safety Standards, EPA and CARB certifications is crucial, as it allows Mullen to sell nationwide and potentially benefit from various EV incentives. This compliance could be a significant selling point, especially for environmentally conscious businesses or those operating in areas with strict emissions regulations.

The automotive industry is watching closely to see if Mullen can successfully carve out a niche in this untapped market segment. If successful, it could prompt larger manufacturers to accelerate their plans for similar vehicles, potentially leading to increased competition in the near future.

Small Business Consultant

Mullen's bizEV lease program for the ONE Class 1 EV cargo van presents an intriguing opportunity for small businesses looking to electrify their fleets. The $475 per month starting price for a 3-year lease, inclusive of maintenance, is particularly attractive when compared to the total cost of ownership for traditional ICE vehicles.

For small businesses, especially those involved in last-mile delivery or urban services, this program addresses several key concerns:

• Lower upfront costs, preserving capital for other business needs
• Predictable monthly expenses, aiding in budgeting and financial planning
• Included maintenance, reducing unexpected repair costs and vehicle downtime
• Potential for lower operating costs due to cheaper electricity vs. fuel prices
• Compliance with emerging urban emissions regulations

However, businesses should carefully consider some potential drawbacks:

• track record for Mullen as a manufacturer
• Potential range limitations compared to ICE vehicles
• Availability of charging infrastructure in their operating areas
• Possible limitations in payload or cargo space compared to familiar ICE alternatives

Overall, for businesses operating primarily in urban environments with predictable routes, the Mullen ONE and its lease program could offer significant advantages. It's a low-risk way to test EV integration into their fleets, potentially leading to long-term cost savings and improved environmental credentials.

3-year lease option, starting at $475 per month plus applicable taxes and fees, includes scheduled vehicle maintenance

bizEV lease program created with focus on individuals, small businesses and fleets available through Mullen authorized dealers

BREA, Calif., Aug. 02, 2024 (GLOBE NEWSWIRE) -- via IBN – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, today announces a new lease program for the Mullen ONE, Class 1 EV cargo van. The new lease program, bizEV, is targeted to well qualified buyers with a focus on individuals, small businesses and fleets and is available through Mullen authorized dealers.

BizEV is a turnkey lease program offering customers an opportunity to transition to EV with a 3-year lease option, starting at $475 per month plus applicable taxes and fees and includes scheduled vehicle maintenance.

Mullen is committed to making commercial electric vehicle ownership a seamless and accessible experience. bizEV is designed to cater to the diverse needs of small businesses and offers flexible and affordable options to experience the benefits and cost savings from Mullen ONE ownership without the barrier of traditional upfront costs. A turnkey lease program including comprehensive vehicle maintenance, bizEV offers customers an opportunity to transition to EV with a 3-year lease option, starting at $475 per month, plus applicable taxes and fees. bizEV will be available through Mullen authorized dealerships nationwide.

The Mullen ONE is a class 1 commercial electric vehicle, the first of its kind in the U.S. market, purpose-built to meet the demands of urban last-mile delivery. The EV cargo van is designed to navigate within narrow urban streets and residential roads, all while maximizing payload and cargo space, making it ideal for a variety of commercial applications.

“Small businesses are the backbone of America and we are looking to remove the barriers typical business owners face when considering EVs, while making the purchase as affordable and seamless as possible,” said David Michery, CEO and chairman of Mullen Automotive. “By offering flexible lease options, we are making our commercial EVs available for a wider range of customers, in line with our mission to accelerate the adoption of sustainable transportation solutions.”

In full compliance with U.S. Federal Motor Vehicle Safety Standards, the Environmental Protection Agency, and the California Air Resources Board (“CARB”) certifications denoting strict adherence to clean air emissions standards, the Mullen ONE is currently available for sale at an MSRP of $34,500.

Interested customers can order the all-electric Mullen ONE, Class 1 EV cargo van at MullenUSA.com or through a Mullen authorized dealership.

About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. Recently, CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network with the addition of Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group and Eco Auto, providing sales and service coverage in key Midwest, West Coast and Pacific Northwest and New England markets. The Company also recently announced Foreign Trade Zone (“FTZ”) status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. FTZ approval provides a number of benefits, including deferment of duties owed and elimination of duties on exported vehicles.

To learn more about the Company, visit www.MullenUSA.com.

Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and are difficult to predict. Examples of such risks and uncertainties include but are not limited to the future pricing of Mullen vehicles, whether governmental rebates and other incentives will remain in place, how long the offered lease pricing and other lease terms for the Mullen ONE will continue, the duration of the leasing program and whether it will be a success. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date.

Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

Attachment

• Mullen’s bizEV Offers Affordable Leasing for Company’s Class 1 EV Cargo Van

FAQ

What is the monthly cost of Mullen's bizEV lease program for the Mullen ONE EV cargo van?

The bizEV lease program for the Mullen ONE EV cargo van starts at $475 per month for a 3-year lease option, plus applicable taxes and fees. This price includes scheduled vehicle maintenance.

What is the MSRP of the Mullen ONE Class 1 EV cargo van (MULN)?

The Mullen ONE Class 1 EV cargo van (MULN) is currently available for sale at an MSRP of $34,500.

Who is the target market for Mullen's bizEV lease program?

The bizEV lease program is targeted at well-qualified buyers, with a focus on individuals, small businesses, and fleets looking to transition to electric vehicles.

Where can customers purchase or lease the Mullen ONE EV cargo van?

Customers can order the Mullen ONE EV cargo van through MullenUSA.com or at Mullen authorized dealerships nationwide. The bizEV lease program will be available through Mullen authorized dealers.