Mullen Announces Its Dealer Eco Auto’s Expansion and Purchase of 180 Commercial EVs

Rhea-AI Summary

Mullen Automotive Inc. (NASDAQ: MULN) announces a significant expansion through its dealer Eco Auto. Eco Auto will purchase 180 commercial EVs over 18 months, valued at $7.7 million, with deliveries starting September 2024. This includes 130 Class 1 EV cargo vans and 50 Class 3 EV trucks. Eco Auto is expanding its coverage to Pennsylvania, Connecticut, Rhode Island, New Hampshire, Maine, and Vermont, meeting growing demand for commercial EVs.

Mullen's commercial lineup includes the Mullen ONE (Class 1 EV cargo van) and Mullen THREE (Class 3 EV cab chassis truck), both compliant with U.S. safety and emissions standards. The Mullen THREE qualifies for significant incentives: a $15,000 incentive in Massachusetts and a $45,000 rebate in California. The Mullen ONE is eligible for a $3,500 incentive in Massachusetts.

Positive

• Secured order for 180 commercial EVs worth $7.7 million
• Expanded dealer network coverage to six additional states
• Mullen THREE qualifies for $15,000 incentive in Massachusetts and $45,000 rebate in California
• Mullen ONE eligible for $3,500 incentive in Massachusetts
• Growing demand for Mullen's commercial EVs reported by dealer

Negative

• Deliveries of new order not starting until September 2024

Insights

Financial Analyst

Mullen's deal with Eco Auto for $7.7 million worth of EVs is a positive development for the company's revenue stream. The order of 180 vehicles over 18 months suggests a steady demand, which could improve Mullen's cash flow and production planning. However, investors should note that deliveries won't start until September 2024, indicating a delay in revenue recognition.

The expansion into six additional states through Eco Auto potentially broadens Mullen's market reach. This could lead to increased sales opportunities, but also comes with the challenge of managing a wider distribution network. The state incentives for Mullen's vehicles ($15,000 in Massachusetts and $45,000 in California) are significant selling points that could drive demand, potentially boosting sales in these regions.

Market Research Analyst

Mullen's strategic partnership with Eco Auto taps into the growing demand for commercial EVs, particularly in the last-mile delivery sector. The expansion across New England and Pennsylvania aligns with increasing state-level initiatives to promote EV adoption. However, Mullen faces stiff competition from established automakers also entering the commercial EV space.

The versatility of Mullen's vehicles for multiple sectors could be a key differentiator. The emphasis on "inexpensive, sustainable solutions for short-distance delivery needs" suggests a targeted approach to a specific market niche. This focus could help Mullen carve out a position in the commercial EV market, but success will depend on the company's ability to scale production and maintain quality as demand grows.

Automotive Industry Expert

Mullen's Class 1 and Class 3 EVs fill a important gap in the commercial vehicle market, addressing the needs of various businesses for sustainable short-distance delivery solutions. The compliance with federal safety standards and CARB certifications is a significant achievement, potentially giving Mullen an edge in environmentally conscious markets.

However, the 18-month delivery timeline raises questions about Mullen's current production capacity and supply chain readiness. The EV market is rapidly evolving and delays could result in technological obsolescence or loss of market share to competitors. Mullen's success will hinge on its ability to ramp up production, maintain quality and deliver vehicles on schedule while potentially facing supply chain challenges common in the automotive industry.

Eco to purchase 130 Class 1 EV cargo vans and 50 Class 3 EV trucks over the next 18 months for an estimated value of $7.7 million, with new deliveries beginning in September 2024

Mullen expands its East Coast reach into Pennsylvania, Connecticut, Rhode Island, New Hampshire, Maine and Vermont through Eco Auto

BREA, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today that its Boston area dealer, Eco Auto (“Eco”), a dedicated EV dealer, will expand to cover national fleet opportunities in Pennsylvania, Connecticut, Rhode Island, New Hampshire, Maine and Vermont to meet the growing demand for commercial EVs and support the Company’s full line of commercial electric vehicles in these regions. Eco’s expansion includes the purchase of 180 vehicles over the next 18 months for an estimated value of $7.7 million with new deliveries beginning in September 2024.

Headquartered in Tewksbury, Massachusetts, Eco Auto is a national franchise of automotive dealerships with a core focus of making EVs accessible to all. Eco Auto offers a comprehensive electric vehicle experience for customers by providing affordable EVs, hybrid models, advanced charging stations, and expert EV service in state-of-the-art facilities.

“Mullen’s offerings are unique in the marketplace and they fill a void for businesses of all sizes that are looking for inexpensive, sustainable solutions for their short-distance delivery needs,” said Al Salas, Chief Executive Officer of Eco Auto. “We are getting strong market response to the Mullen product line, in line with our corporate growth, and are committed to representing the Mullen EVs.”

“Our Commercial EVs are extremely versatile for use across multiple sectors,” said David Michery, CEO and chairman for Mullen Automotive. “This order and the expansion of Eco Auto to meet demand demonstrates that Mullen EVs are the preferred choice for fleet operators across the nation seeking sustainable transportation solutions.”

Mullen announced the addition of Eco Auto as its fifth dealer partner in June 2024, focused on the New England area which will now expand to include Pennsylvania, Connecticut, Rhode Island, New Hampshire Maine and Vermont as the Company solidifies its commercial EV footprint across the United States. Mullen’s commercial EV lineup includes the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a 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 was recently qualified for a $15,000 incentive through the State of Massachusetts MOR-EV program and a $45,000 cash rebate voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program (HVIP). The Mullen ONE is also eligible for a $3,500 MOR-EV incentive in Massachusetts.

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, a Class 3 EV truck, providing up to a $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 timing of fulfilment and delivery of the Eco Auto purchase order; whether Eco Auto will be successful in selling the purchased vehicles; and the duration of and amount applicable to Federal and State incentive programs for electric vehicles. Additional examples of such risks and uncertainties include, but are not limited to: (i) ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) ability to successfully expand in existing markets and enter new markets; (iv) ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) ability to protect intellectual property; and (xi) local, industry and general business and economic conditions. 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

• Eco Auto Expands East Coast Reach into Pennsylvania, Connecticut, Rhode Island, New Hampshire, Maine and Vermont

FAQ

How many commercial EVs did Eco Auto order from Mullen (MULN)?

Eco Auto ordered 180 commercial EVs from Mullen, including 130 Class 1 EV cargo vans and 50 Class 3 EV trucks.

What is the value of Eco Auto's order for Mullen (MULN) commercial EVs?

The order for 180 commercial EVs from Mullen is valued at an estimated $7.7 million.

When will Mullen (MULN) start delivering the new order to Eco Auto?

Mullen will begin delivering the new order of commercial EVs to Eco Auto in September 2024.

Which new states will Eco Auto cover for Mullen (MULN) commercial EVs?

Eco Auto is expanding to cover Pennsylvania, Connecticut, Rhode Island, New Hampshire, Maine, and Vermont for Mullen commercial EVs.

What incentives are available for Mullen's (MULN) commercial EVs?

The Mullen THREE qualifies for a $15,000 incentive in Massachusetts and a $45,000 rebate in California. The Mullen ONE is eligible for a $3,500 incentive in Massachusetts.