Mullen Announces Papé and Emerald Transportation’s Refrigerated Solution for the Mullen Class 3 EV Truck

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) announces a collaboration with Emerald Transportation Solutions and the Papé Group to develop a refrigerated upfit for the Mullen THREE Class 3 electric truck. The initiative targets expanding markets in home delivery, frozen food, grocery, and beverage transportation. The Mullen THREE features a versatile chassis supporting bodies up to 14 feet long with over 5,300 lbs payload capacity. The vehicle qualifies for significant incentives, including a $15,000 rebate through Massachusetts' MOR-EV program and a $45,000 voucher through California's HVIP program, plus the $7,500 Federal Tax Incentive.

Positive

• Vehicle qualifies for substantial incentives: $15,000 (Massachusetts), $45,000 (California), and $7,500 (Federal)
• Expansion into growing refrigerated transport market segment
• Versatile chassis supporting 14-foot bodies with 5,300+ lbs payload capacity

Negative

• None.

Insights

Market Research Analyst

The development of a refrigerated solution for Mullen's Class 3 EV truck represents a strategic expansion into the lucrative cold chain logistics market. The collaboration with Emerald Transportation Solutions and Papé Group opens up significant revenue opportunities in the rapidly growing last-mile delivery sector for perishable goods.

The market timing is particularly favorable as demand for electric refrigerated delivery vehicles is increasing due to stricter emissions regulations and rising operating costs for traditional diesel reefer trucks. The available incentives, including $15,000 from Massachusetts MOR-EV and $45,000 from California HVIP, significantly reduce the total cost of ownership, making the value proposition more attractive to potential fleet customers.

However, while the market opportunity is substantial, Mullen faces intense competition from established players and must prove its reliability in the demanding refrigerated transport sector. The company's current market cap of $27.2M and financial position may present challenges in scaling production to meet potential demand.

Emerald is a leading commercial vehicle manufacturer and seller of refrigerated trucks and vans

The refrigerated Class 3 EV box truck opens new rapidly expanding categories for home delivery, frozen food, grocery and beverage transportation

BREA, Calif., Nov. 26, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today that Emerald Transportation Solutions (“Emerald”), a premier commercial refrigeration (“reefer”) vehicle upfitter, is working with the Papé Group (“Papé”) to develop an advanced reefer upfit for the Mullen THREE, a Class 3 all-electric truck. The refrigerated Class 3 EV box truck opens new rapidly expanding categories for home delivery, frozen food, grocery and beverage transportation.

Emerald is a leading commercial vehicle upfitter with more than 55 years of combined experience and a successful track record of working with many frozen food, beverage and home delivery companies. Emerald can outfit service trucks and vans to ensure efficient and safe operation and sells and installs a variety of refrigeration equipment to customize commercial vehicles. Additionally, Emerald specializes in collaborating with clients to design and fabricate custom and unique upfits or vehicle conversions tailored to specific needs and budgets.

The Mullen THREE Class 3 electric truck comes with a versatile chassis that provides a clean top-of-rail for easy upfitting with bodies up to 14 feet long and over 5,300 lbs of payload, making it an ideal platform for the reefer upfit.

“Transportation of perishable goods is a great segment for our commercial EVs and working with Emerald and Papé to bring this innovative reefer upfit of the Mullen THREE to market,” said David Michery, CEO and chairman of Mullen Automotive. “This collaboration aligns with our commitment to providing sustainable and efficient transportation solutions for businesses of all sizes and industries.”

For more information and pricing on the Papé-Emerald Mullen THREE Reefer, contact the Papé EV Team: Mannie Calderon @ lcalderon@papekenworth.com or Mike Hoheisel @ mhoheisel@papekenworth.com.

Mullen’s commercial EV lineup includes the Mullen ONE, Class 1 EV cargo van, and 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, EPA and CARB certifications.

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 the MOR-EV program with a $3,500 rebate in Massachusetts. When combined with the $7,500 Federal Tax Incentive, both vehicles offer substantial savings for commercial fleet customers.

Please visit the Mullen Commercial website for more information on Mullen’s upfitting solutions.

About Emerald Fleet Solutions
Emerald Transportation Solutions is a refrigerated truck manufacturer based on providing superior service with honesty. The owners enjoy what they do. No deal is ever too important to sacrifice our integrity in the name of profit. Our 55+ years of combined experience in building and selling refrigerated delivery vehicles ensures you are in the right place for your reefer truck needs.

To learn more about Emerald, visit www.EmeraldTransportationSolutions.com.

About Papé Group
The Papé Group is a premier capital equipment provider in the West. For over 85 years, Papé has worked to maximize customers' uptime through top-quality equipment, convenient maintenance service, and the best customer service. This fourth-generation, family-owned company is dedicated to providing customers with quality products and unmatched service. As the leading supplier of construction, logging, material handling, landscaping, trenching and farm equipment, as well as semi-trucks and warehouse products, Papé makes good on providing customers with end-to-end solutions.

To learn more about Papé Group, visit www.Pape.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, timing associated with development and completion of the advanced reefer upfit for the Mullen THREE, whether the refrigeration upfit will be successful for Mullen, Emerald or Papé, whether vehicle orders will result from the Papé customer demo, how long governmental incentives for electric vehicles will remain in place, and the resultant selling prices of Mullen vehicles. Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s 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) Mullen’s ability to protect its 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:
IBN
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

Attachment

• Mullen Class 3 Reefer Unit Opens Company Up to Rapidly Expanding Delivery Market for EV-Based Delivery of Refrigerated Goods

FAQ

What incentives are available for the Mullen THREE Class 3 EV truck (MULN)?

The Mullen THREE qualifies for a $15,000 incentive through Massachusetts' MOR-EV program, a $45,000 voucher through California's HVIP program, and a $7,500 Federal Tax Incentive.

What is the payload capacity of the Mullen THREE (MULN) Class 3 electric truck?

The Mullen THREE Class 3 electric truck can handle bodies up to 14 feet long and has a payload capacity of over 5,300 lbs.

What new market segment is Mullen (MULN) targeting with the refrigerated Class 3 EV truck?

Mullen is targeting the home delivery, frozen food, grocery, and beverage transportation markets with its refrigerated Class 3 EV truck.