Mullen Emphasizes Focus on Commercial Vehicle Segment with First Mover Advantage Across Class 1 and 3 Electric Cargo Vans and Trucks
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Insights
Examining Mullen Automotive's announcement from a market perspective, the company's achievement of a positive gross margin per Class 1 and Class 3 electric vehicles is a significant milestone. Typically, new entrants in the EV market struggle with profitability due to high production costs and lower economies of scale. Mullen's ability to reach positive gross margins so early in production is noteworthy, indicating effective cost management and a potentially scalable business model. Furthermore, the focus on commercial EVs is strategic, as this market segment is expected to grow rapidly due to increasing e-commerce and urbanization, leading to higher demand for last-mile delivery solutions.
The integration of advanced battery solutions and AI-driven battery management systems, which Mullen refers to as 'The Intelligent BMS', suggests a commitment to technological innovation and could provide a competitive edge. Battery performance is a critical factor for EV adoption and advancements in this area can lead to increased vehicle range, efficiency and lifecycle, which are key considerations for commercial fleet operators.
However, the planned start of Class 4 vehicle production in the second half of 2024 indicates a timeline that investors and stakeholders will monitor closely. Delays in production could affect the company's financials and stock performance. Additionally, maintaining the positive gross margin as production scales will be crucial for long-term sustainability.
The shift towards electric vehicles in the commercial sector is a global trend, driven by regulatory pressures and the need for sustainable transportation solutions. Mullen Automotive's focus on Class 1-3 vehicles caters to a niche in urban last-mile delivery, which is experiencing increased demand due to the rise of online shopping. The EPA and CARB certifications for their vehicles are essential for operating across the United States, as these certifications ensure compliance with strict environmental standards.
The mention of acquisitions, such as Bollinger Motors and Electric Last Mile Solutions assets, highlights a strategic move to accelerate growth and expand capabilities. These acquisitions not only provide Mullen with additional technology and production facilities but also indicate an aggressive approach to capturing market share in the EV space. As the production of Class 4-6 vehicles by Bollinger Motors is planned for the second half of 2024, it will be important to observe how these vehicles will be received in the market, especially since they will be competing with established players who are also expanding their EV offerings.
From a sustainability standpoint, Mullen Automotive's progress in producing commercial electric vehicles aligns with broader environmental goals and the transition towards a low-carbon economy. The integration of advanced battery technology and AI in battery management systems could lead to improved energy efficiency and reduced greenhouse gas emissions. This technological innovation is in line with industry trends focusing on the electrification of transport as a means to combat climate change.
The acquisition of a large automotive manufacturing facility also suggests that Mullen is positioning itself to meet the expected increase in demand for EVs while potentially reducing its carbon footprint through domestic production. The ability to sell in every state thanks to EPA and CARB certifications enhances the potential market reach of their vehicles, thus contributing to the adoption of clean energy vehicles on a national scale. However, the actual environmental impact will depend on the life-cycle analysis of the vehicles, including production processes, energy sources for electricity and end-of-life vehicle management.
Company in full commercial EV production with Class 1 and Class 3 vehicles; Bollinger Motors focused on Class 4-6 vehicles with Class 4 production starting in second half 2024
Company achieves positive gross margin per Class 1 and Class 3 vehicles invoiced
Company integrating advance battery solutions and AI driven battery management system, “The Intelligent BMS”
BREA, Calif., Feb. 26, 2024 (GLOBE NEWSWIRE) -- via IBN – Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, highlights today the Company’s continued focus on the commercial vehicle segment with production and deliveries of its Class 1 and Class 3 commercial EVs. The Company also highlights Bollinger Motors' focus on the Class 4-6 commercial vehicle segment and production start of Class 4 vehicles, which is planned in the second half of 2024.
The Company has achieved positive gross margin per vehicles invoiced, which is an important highlight considering majority of EV companies have launched EVs with significant losses to date.
“Strategically, in 2022 we understood EV adoption in the commercial sector would occur faster and doubled down on our acquisition efforts with both the majority acquisition of Bollinger Motors and the purchase of Electric Last Mile Solutions assets, which included full ownership of a large automotive manufacturing facility in Mishawaka, Indiana,” said David Michery, CEO and chairman of Mullen Automotive.
“These acquisitions allowed us to scale faster, which is best demonstrated by the launch of commercial vehicle production and customer deliveries in 2023. Mullen’s effort will be matched when Bollinger begins Class 4 production launch, which is planned later in 2024. Our effort on the commercial segment is laser focused and the opportunity has never been better with increased demand seen across all our commercial vehicle offerings.
“Along with production, we have remained steadfastly focused on continuous improvement and R&D as seen in the addition of our battery facility in Fullerton, California, to produce our own packs. The focus on batteries is ever more important for the sector from a range and supply chain perspective. We believe harnessing AI and applying it to our battery management systems can hold additional promise for our vehicles in the commercial sectors.”
Mullen began Class 3 vehicle production in August 2023 and first vehicle deliveries in September 2023. Mullen Class 1 production began in November 2023 with first vehicle deliveries in December 2023.
The all-electric Mullen ONE Class 1 EV cargo van and Mullen THREE Class 3 low cab forward EV truck are both purpose-built to meet the demands of urban last-mile delivery and vocational services. Both the Class 1 and Class 3 commercial vehicles are in receipt of Environmental Protection Agency (“EPA”) and CARB certifications and can be sold in every state throughout the U.S.
About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of electric vehicles (“EVs”) that will be manufactured in its two United States-based assembly plants. Mullen’s EV development portfolio includes the Mullen FIVE EV Crossover, Mullen-GO Commercial Urban Delivery EV, Mullen Commercial Class 1-3 EVs and Bollinger Motors, which features both the B1 and B2 electric SUV trucks and Class 4-6 commercial offerings. On Sept. 7, 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and on Dec. 1, 2022, Mullen closed on the acquisition of Electric Last Mile Solutions’ (“ELMS”) assets, including all IP and a 650,000-square-foot plant in Mishawaka, Indiana.
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 demand, sales volume, gross sales margins timing of future production and deliveries of the Mullen Class 1 and Class 3 vehicles and Bollinger Motors, Class 4-6 vehicles, including Class 4 vehicle production start, whether Mullen’s solid-state battery technology will prove successful and if the Company’s AI-based battery management systems endeavors will materialize. 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:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
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FAQ
What types of vehicles is Mullen Automotive Inc. currently focusing on in its commercial segment?
When is Bollinger Motors planning to start production of Class 4 vehicles?
What milestone has Mullen Automotive Inc. achieved in terms of gross margin per vehicles invoiced?
What strategic acquisitions has Mullen Automotive Inc. made to enable faster scaling and production?
Where is Mullen Automotive Inc.'s battery facility located?
What certifications have Mullen Automotive Inc.'s Class 1 and Class 3 vehicles received?
