Mullen Announces the Purchase of Mullen CAMPUS EVs by Global Transportation and Logistics Leader, DB Schenker

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) announces that global transportation and logistics leader DB Schenker has purchased four Mullen CAMPUS electric vehicles for use on Intel's technology campus in Chandler, Arizona. The vehicles, designed for low-speed, closed-campus use, will be utilized for mail and package delivery. Randy Marion Automotive, a Mullen commercial vehicle dealer, has received full payment and delivered the vehicles.

DB Schenker, founded in 1872, is a global leader with over 72,700 employees across 1,850 locations worldwide. The company aims to be carbon neutral by 2040 and continuously invests in innovative low-carbon freight solutions. The Mullen CAMPUS, a fully battery-operated vehicle (BEV), aligns with DB Schenker's sustainability goals and will contribute to reducing their environmental footprint while maintaining efficient operations.

Positive

• Purchase of four Mullen CAMPUS EVs by global logistics leader DB Schenker
• Full payment received and delivery completed through Randy Marion Automotive
• Vehicles deployed for practical use on Intel's technology campus
• Alignment with DB Schenker's sustainability goals and carbon neutrality target

Negative

• None.

Financial Analyst

The purchase of Mullen CAMPUS EVs by DB Schenker marks a significant milestone for Mullen Automotive (NASDAQ: MULN). While the initial order of four vehicles may seem modest, it's important to consider the potential for future growth and market validation this partnership represents.

From a financial perspective, this deal offers several key insights:

• Immediate Revenue: The full payment received by Randy Marion Automotive for the four vehicles provides an immediate boost to Mullen's cash flow.
• Proof of Concept: The adoption by a global leader like DB Schenker serves as a strong endorsement of Mullen's technology and product quality.
• Expansion Potential: The mention of "plans for additional vehicle orders to follow" suggests a significant opportunity for recurring revenue and fleet expansion.
• Market Positioning: This deal positions Mullen in the lucrative closed-campus logistics market, a niche with substantial growth potential as companies seek to reduce their carbon footprint.

However, investors should note that while promising, this deal alone is unlikely to dramatically alter Mullen's financial position in the short term. The company's ability to scale production and secure larger orders will be critical for long-term success and profitability.

In conclusion, while this news is certainly positive for Mullen, prudent investors should monitor the company's ability to leverage this opportunity into more substantial contracts and sustainable revenue growth before making investment decisions.

Sustainability Expert

The adoption of Mullen CAMPUS EVs by DB Schenker for Intel's technology campus is a noteworthy development in the realm of sustainable logistics. This move aligns perfectly with the global trend towards decarbonization in the transportation sector.

Key sustainability implications include:

• Carbon Footprint Reduction: By replacing traditional combustion engine vehicles with Mullen's BEVs, DB Schenker is taking a tangible step towards its goal of carbon neutrality by 2040.
• Closed-Loop Efficiency: The use of these EVs in a closed-campus environment maximizes their efficiency, as it allows for optimized charging schedules and route planning.
• Industry Leadership: DB Schenker's decision to invest in electric vehicles for last-mile delivery sets a precedent for other logistics companies, potentially accelerating the industry's transition to sustainable transport solutions.
• Supply Chain Greening: This initiative contributes to the overall sustainability of Intel's supply chain, demonstrating how partnerships between tech giants and logistics providers can drive environmental progress.

However, it's important to note that while this is a positive step, the true environmental impact will depend on the scale of adoption and the source of electricity used to charge these vehicles. The sustainability community will be watching closely to see how this pilot program expands and whether it leads to broader adoption of EVs in logistics operations.

Overall, this partnership between Mullen, DB Schenker and Intel represents a promising model for sustainable innovation in closed-campus logistics, with potential ripple effects across the industry.

Electric Vehicle Industry Analyst

The purchase of Mullen CAMPUS EVs by DB Schenker for use at Intel's facility is a notable development in the commercial EV sector, particularly for last-mile and closed-campus logistics. This deal offers several insights into the evolving EV market:

• Market Validation: The adoption by a major player like DB Schenker validates the viability of purpose-built EVs for specific use cases, potentially opening doors for similar partnerships in the future.
• Niche Focus: Mullen's strategy of targeting the closed-campus market with a specialized vehicle demonstrates the importance of finding and dominating specific niches in the competitive EV landscape.
• Corporate Sustainability Initiatives: This purchase aligns with the growing trend of corporations integrating EVs into their operations to meet sustainability goals, indicating a potentially expanding market for commercial EVs.
• Competition Landscape: While this is a win for Mullen, it's important to note that they face stiff competition from both established automakers and other EV startups in the commercial vehicle space.

The success of this initial deployment will be important for Mullen. If the CAMPUS EVs perform well at Intel's facility, it could lead to larger orders not only from DB Schenker but also from other logistics providers and corporations with similar needs.

However, investors and industry observers should remain cautious. The commercial EV market is still in its early stages and Mullen will need to demonstrate its ability to scale production, maintain quality and provide adequate after-sales support to truly capitalize on this opportunity.

In conclusion, while this deal is certainly positive for Mullen, it represents just the beginning of what needs to be a sustained effort to establish itself as a major player in the commercial EV market.

Vehicles currently in use on Intel’s technology campus in Chandler, Arizona, for mail and package delivery; plans for additional vehicle orders to follow

Randy Marion Automotive in receipt of payment in full and delivery has been made on four Mullen CAMPUS EV cargo vans

DB Schenker, founded in 1872, is a global leader with over 72,700 employees across 1,850 locations

BREA, Calif., July 29, 2024 (GLOBE NEWSWIRE) -- via IBN – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, today announces that DB Schenker, one of the world’s leading transportation and logistics companies, has purchased four Mullen CAMPUS electric vehicles for use on Intel’s technology campus in Chandler, Arizona, for mail and package delivery. Randy Marion Automotive, one of Mullen’s commercial vehicle dealers, is in receipt of payment and has delivered the vehicles to DB Schenker.

Founded in 1872, DB Schenker is a global leader with over 72,700 employees across 1,850 locations worldwide working to shape transport and the exchange of goods through new, innovative, and sustainable ways for businesses and their supply chain management. Their integrated approach ensures that every step of the supply chain is optimized for success, from land transport to air and ocean freight, contract logistics and supply chain management. With the goal to be carbon neutral by 2040, DB Schenker continuously invests in innovative low-carbon land, air and ocean freight solutions, while improving resource efficiency in their warehouses. Together with its partners, DB Schenker is exploring the technologies which will enable the clean logistics of the future.

The Mullen CAMPUS, a highly efficient electric van designed for low-speed, closed-campus use, will play a key role in DB Schenker’s efforts to reduce its environmental footprint while maintaining efficient operations. The fully battery-operated vehicle (“BEV”) will be used for closed-campus transportation, providing class-leading cargo capacity and overall operator comfort. The CAMPUS delivery van has all the same DNA as the Mullen ONE but was purpose-built to support logistics in micro-environments.

“DB Schenker is committed to sustainability and innovation, aligning perfectly with Mullen's mission to accelerate the adoption of commercial electric vehicles,” said David Michery, CEO and chairman of Mullen Automotive. “We are confident that our CAMPUS EVs will provide DB Schenker with a clean, efficient and reliable transportation solution.”

About DB Schenker
At DB Schenker, we're not just about logistics; we're about understanding what truly matters to you. As a global leader in transportation and logistics, we're dedicated to supporting industries and businesses worldwide in the seamless exchange of goods. Our integrated approach ensures that every step of the supply chain is optimized for success, from land transport to air and ocean freight, contract logistics and supply chain management. We operate at the heart of crucial intersections, where the flow of goods meets the demands of industry.

To learn more about DB Schenker, visit www.dbschenker.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 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 whether any additional vehicles will be ordered by  DB Schenker, or 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

• DB Schenker is an Intel contractor for delivering mail on Intel’s Chandler, Arizona, technology campus

FAQ

How many Mullen CAMPUS EVs did DB Schenker purchase for Intel's campus?

DB Schenker purchased four Mullen CAMPUS electric vehicles for use on Intel's technology campus in Chandler, Arizona.

What is the primary use of the Mullen CAMPUS EVs on Intel's campus?

The Mullen CAMPUS EVs will be used for mail and package delivery on Intel's technology campus in Chandler, Arizona.

Has Mullen Automotive (MULN) received payment for the CAMPUS EVs?

Yes, Randy Marion Automotive, Mullen's commercial vehicle dealer, has received full payment for the four Mullen CAMPUS EVs.

What is DB Schenker's goal regarding carbon neutrality?

DB Schenker aims to be carbon neutral by 2040 and continuously invests in innovative low-carbon freight solutions.