Mullen’s Class 1 EV Cargo Van Receives Approval for the MOR-EV Program, Granting a $3,500 Rebate in Massachusetts

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) announces that its 2024 Mullen ONE, an all-electric Class 1 cargo van, has been approved for up to $3,500 cash voucher under Massachusetts' MOR-EV program. With a suggested MSRP of $34,500, the Mullen ONE can now benefit from both this state rebate and the $7,500 federal tax credit, potentially reducing its net cost to approximately $23,500.

The MOR-EV program, managed by the Massachusetts Executive Office of Energy and Environmental Affairs' Department of Energy Resources, aims to make EVs more affordable and reduce greenhouse gas emissions. Both the Mullen ONE and THREE are eligible for MOR-EV rebates, with the THREE qualifying for a $15,000 incentive. These vehicles are available for purchase in Massachusetts through Eco Auto, Mullen's New England area EV dealer.

Positive

• Mullen ONE approved for $3,500 rebate under Massachusetts' MOR-EV program
• Potential net cost reduction to $23,500 when combined with $7,500 federal tax credit
• Mullen THREE qualifies for $15,000 incentive through MOR-EV program
• Mullen THREE received CARB approval for 2024 and 2025 Class 3 model years
• Mullen THREE approved for $45,000 HVIP cash rebate voucher in California

Negative

• None.

Financial Analyst

The approval of the Mullen ONE Class 1 EV cargo van for a $3,500 rebate under the Massachusetts MOR-EV program is noteworthy. Financial incentives like these can significantly reduce the effective purchase price for consumers and businesses, from $34,500 to $23,500 when combined with the federal tax credit. This makes the Mullen ONE more affordable compared to other commercial EVs.

From a financial perspective, this approval could increase sales volume and market penetration in Massachusetts. Given that Massachusetts is a CARB-approved state, this could also set a precedent for similar incentives in other states, potentially driving nationwide sales. However, investors should monitor how these rebates translate into actual sales and revenue growth for Mullen Automotive.

In the short-term, this news may boost investor sentiment and the stock price due to the perceived increase in addressable market. Long-term implications will depend on Mullen's ability to capitalize on these incentives, manage production costs and retain competitive pricing even as incentives phase out.

Market Research Analyst

This development is significant for Mullen Automotive’s market strategy, especially in the commercial EV segment. The MOR-EV program rebate aligns with the growing trend towards electrification of commercial fleets, which is driven by both economic and environmental factors. Massachusetts, being a CARB-approved state, can act as a bellwether for similar policies in other states, potentially expanding the market for Mullen's EVs.

For retail investors, understanding the dynamics of the EV incentives landscape is crucial. These incentives play a key role in lowering the total cost of ownership for commercial EVs, making them more appealing to fleet operators. The approval in Massachusetts could lead to increased demand not only from individual businesses but also from larger fleets, enhancing Mullen’s market penetration.

However, it's essential to keep track of how Mullen manages production and supply chain challenges, as increased demand without adequate supply can lead to delays and customer dissatisfaction.

Environmental Policy Expert

The inclusion of the Mullen ONE in the Massachusetts MOR-EV program is a positive step towards achieving clean transportation goals. The program's aim to reduce greenhouse gas emissions aligns with broader state and federal environmental policies. By making EVs more affordable, the program encourages businesses and consumers to transition from traditional vehicles to electric, contributing to lower emissions and improved urban air quality.

From an investor's perspective, the environmental impact of such initiatives can enhance the company's brand image and appeal to ESG-focused investors (Environmental, Social and Governance). Mullen’s adherence to Federal Motor Vehicle Safety Standards, EPA and CARB certifications also underscores its commitment to environmental standards, which is a valuable attribute in the eyes of socially responsible investors.

Nonetheless, the long-term success will depend on how these policy-driven incentives evolve and whether they maintain their efficacy in promoting EV adoption as technologies and market conditions change.

Under the MOR-EV program, the Mullen ONE Class 1 EV cargo van, with a suggested MSRP of $34,500, is now approved for a MA state cash rebate of up to $3,500

When combined with the available $7,500 federal tax credit, the net effective cost of the Mullen ONE would be approximately $23,500

BREA, Calif., July 17, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today the Massachusetts Executive Office of Energy and Environmental Affairs’ Department of Energy Resources (“DOER”) has approved the Company’s all-electric Class 1 cargo van, the 2024 Mullen ONE, for up to $3,500 cash voucher under its MOR-EV program.

Managed by the Executive Office of Energy and Environmental Affairs’ Department of Energy Resources and administered statewide by the Center for Sustainable Energy (CSE),  MOR-EV is dedicated to making electric vehicles more affordable for Massachusetts residents, businesses and non-profit organizations to help achieve clean transportation goals and reduce greenhouse gas emissions and provide more equitable access to EVs. MOR-EV Trucks incentivizes purchases and leases of a variety of medium- and heavy-duty battery electric and fuel cell electric trucks, buses and vans. Rebates apply to both individual and fleet acquisitions.

Under MOR-EV, the 2024 Mullen ONE EV cargo van, with a suggested MSRP of $34,500, now qualifies for up to $3,500 cash voucher. When combined with the available $7,500 federal tax credit, the net effective cost of the Mullen ONE would be approximately $23,500.

“Both the Mullen ONE and THREE are now eligible for the MOR-EV rebate, making our Commercial EVs even more affordable for Massachusetts businesses,” said David Michery, CEO and chairman of Mullen Automotive. “We're committed to making Mullen Commercial EVs accessible nationwide and securing state-level incentives like the MOR-EV program is a key part of this strategy.”

The Mullen THREE and Mullen ONE are available for purchase in Massachusetts through its recently announced New England area EV dealer, Eco Auto, based north of Boston in Tewksbury, Massachusetts.

The Mullen THREE was also qualified last month for a $15,000 incentive through the State of Massachusetts MOR-EV program and is now in receipt of California Air Resources Board (“CARB”) approval for both 2024 and 2025 Class 3 model years. Massachusetts is a CARB-approved state with a similar program to California’s Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (“HVIP”), which in April approved the Mullen THREE for a $45,000 HVIP cash rebate voucher at time of vehicle purchase.

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 CARB certifications denoting strict adherence to clean air emissions standards.

About MOR-EV
 MOR-EV is dedicated to making electric vehicles (EVs) more affordable for Massachusetts residents, businesses and non-profit organizations to help achieve clean transportation goals and reduce greenhouse gas emissions and provide more equitable access to EVs. The program is funded by the Executive Office of Energy and Environmental Affairs’ Department of Energy Resources (DOER) and administered statewide by the Center for Sustainable Energy (CSE).

To learn more, visit  www.mor-ev.org

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 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, how long the MOR-EV and other government incentives will be available and the net pricing impact of these programs on the Mullen ONE EV cargo van.  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

Attachment

• New $3,500 Incentive Available Now on Mullen’s Class 1 EV Cargo Van in Massachusetts

FAQ

What is the rebate amount for the Mullen ONE EV cargo van under the Massachusetts MOR-EV program?

The Mullen ONE EV cargo van is approved for up to $3,500 cash voucher under the Massachusetts MOR-EV program.

What is the suggested MSRP of the 2024 Mullen ONE EV cargo van?

The suggested MSRP of the 2024 Mullen ONE EV cargo van is $34,500.

What is the potential net cost of the Mullen ONE after state and federal incentives?

After combining the $3,500 MOR-EV rebate and $7,500 federal tax credit, the potential net cost of the Mullen ONE would be approximately $23,500.

Where can customers purchase Mullen EVs in Massachusetts?

Mullen EVs can be purchased in Massachusetts through Eco Auto, Mullen's New England area EV dealer, located in Tewksbury, Massachusetts.