Mullen Announces Commercial EV Order from Northern California Leading Coffee Distributor, Associated Coffee, Servicing Over 5,000 Bay Area Customers

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) has secured an order for 10 Class 3 EV cab chassis trucks from Associated Coffee, a San Francisco Bay Area coffee and snack distributor servicing over 5,000 Northern California businesses. The order will be fulfilled through Mullen's newest franchise dealer, Papé Group, a leading West Coast commercial dealer.

The Mullen THREE Class 3 EV trucks qualify for a $45,000 HVIP cash rebate voucher and a $7,500 Federal Tax Incentive. Associated Coffee, known for its sustainability initiatives, will use these EVs to support their environmentally conscious operations across five Bay Area branches.

Positive

• Secured new commercial order for 10 Class 3 EV trucks
• Vehicles qualify for combined $52,500 in government incentives per unit
• Expanded dealer network through partnership with Papé Group

Negative

• None.

Insights

Financial Analyst

This order for 10 Class 3 EV trucks represents a meaningful commercial win for Mullen, particularly given their small market cap of $19.7M. The deal's significance is amplified by California's generous incentives, with potential savings of $52,500 per vehicle ($45,000 HVIP rebate plus $7,500 Federal Tax Incentive). The total potential value for all 10 vehicles could exceed $525,000 in incentives alone, making the deal highly attractive for Associated Coffee.

The partnership with Papé Group, a major West Coast dealer, provides Mullen with a credible distribution channel. Associated Coffee's 5,000+ customer base and strategic focus on sustainability make them an ideal reference customer in the important California market. However, investors should note that while positive, this order size is relatively modest and Mullen still needs substantially larger orders to achieve meaningful revenue growth given their current financial position.

Market Research Analyst

This deal is strategically significant as it targets the San Francisco Bay Area, a premier market for EV adoption with strong environmental consciousness. Associated Coffee's commitment to sustainability and their extensive customer network could serve as a powerful showcase for Mullen's commercial EVs. The partnership demonstrates market validation in the last-mile delivery segment, a rapidly growing sector driven by e-commerce and urban delivery demands.

The timing aligns with increasing corporate pressure to reduce carbon footprints, particularly in California where environmental regulations are strictest. Associated Coffee's multi-branch operation model presents potential for future fleet expansion if this initial deployment proves successful. However, competition in the commercial EV space is intensifying, with established players and startups vying for market share. Mullen will need to leverage this reference customer to secure larger fleet orders to establish meaningful market presence.

Initial vehicle order includes 10 Class 3 EV trucks and is fulfilled by Mullen’s newest franchise dealer, Papé Group

For more than 40 years, Associated Coffee has been a leading provider of superior office coffee service and refreshments across the San Francisco Bay Area

BREA, Calif., Dec. 05, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, today announces an order from Associated Coffee (“Associated”), a San Francisco Bay Area coffee and snack distributor. The initial vehicle order includes 10 Class 3 EV cab chassis trucks and is fulfilled by Papé Group (“Papé”), a leading West Coast commercial dealer group and an authorized Mullen EV sales and service dealer.

For more than 40 years, Associated Coffee has been providing superior office coffee service and refreshments across the San Francisco Bay Area. Based in San Leandro, California, Associated services more than 5,000 Northern California businesses. Associated prioritizes sustainability within operations, including sourcing and partnering with locally owned suppliers and implementing in-house recycling programs. Associated Coffee is the only known office coffee service in the Bay Area to invest in a state-of-the-art de-liming method instead of employing traditional harsh chemical (acid) methods. In addition, Associated distributes products from five strategically located Bay Area branches, allowing for less road time, less pollution and less fuel consumption, while reducing overall carbon footprint and expediting response time to better serve customers.

"Our commercial EVs are an ideal solution for office coffee and snack delivery services, and the San Francisco Bay Area is a well-known established region for electric vehicle adoption," said David Michery, CEO and chairman of Mullen Automotive. "We are proud to support Associated Coffee’s sustainability initiatives and their focus on operational efficiency."

Mullen’s commercial EV lineup includes the Mullen ONE, Class 1 EV cargo van, and the Mullen THREE, Class 3 EV cab chassis truck, purpose-built to meet the demands of urban last-mile delivery. Both vehicles are available for sale and 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 THREE qualifies for a $45,000 cash rebate voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program (“HVIP”). When combined with the $7,500 Federal Tax Incentive, the THREE offers substantial savings for commercial fleet customers.

About Associated Coffee
Associated was born in 1972, and we’ve been satisfying the San Francisco Bay Area ever since. We are specialists in safely delivering coffee, snacks and happiness from Oakland to San Jose, Palo Alto, San Francisco, and everywhere in between.

To learn more about Associated Coffee, visit www.AssociatedCoffee.com.

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 to seven dealers with the addition of Papé Kenworth. Other previously announced dealers include Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key Midwest, West Coast, Pacific Northwest, New England and Mid-Atlantic markets. The Company has also 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 timing of fulfilment and delivery of the referenced order, whether any additional vehicles will be ordered by Associated Coffee, and how long local and federal governmental incentives for electric vehicles will be available. 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

• Associated is a Leading San Francisco Bay Area Coffee Distributor

FAQ

How many Class 3 EV trucks did Associated Coffee order from Mullen (MULN)?

Associated Coffee ordered 10 Mullen Class 3 EV cab chassis trucks.

What incentives are available for Mullen's (MULN) Class 3 EV trucks?

The Mullen THREE qualifies for a $45,000 HVIP cash rebate voucher and a $7,500 Federal Tax Incentive, totaling $52,500 in potential savings.

Which dealer is fulfilling Associated Coffee's order for Mullen (MULN) EVs?

The Papé Group, a leading West Coast commercial dealer and authorized Mullen EV sales and service dealer, is fulfilling the order.