Mullen Subsidiary, Bollinger Motors, Announces Sale of 70 B4 EV Trucks
Mullen Automotive's subsidiary, Bollinger Motors, has secured a significant deal with Doering Fleet Management for the sale of 70 all-electric Class 4 Bollinger B4 commercial trucks. The order, valued at approximately $11.5 million, marks a milestone as the B4 will be Doering's first medium-duty, all-electric truck offering. Deliveries are scheduled to begin in late 2024.
The Bollinger B4 Chassis Cab is a newly designed 800-volt battery electric Class 4 commercial truck, developed with input from fleets and upfitters. It qualifies for a $40,000 refundable tax credit per truck under the Inflation Reduction Act. Bollinger Motors has recently achieved several milestones, including EPA certification and partnerships with key industry players for battery supply, assembly, warranty administration, and mobile services.
- Secured a $11.5 million order for 70 B4 EV trucks from Doering Fleet Management
- B4 trucks qualify for $40,000 refundable tax credit under Inflation Reduction Act
- Received EPA Certificate of Conformity
- Established partnerships for battery supply, assembly, warranty administration, and mobile services
- First deliveries not scheduled until late 2024, potentially delaying revenue recognition
Insights
The recent sale of 70 Bollinger B4 EV trucks to Doering Fleet Management marks a significant milestone for Mullen Automotive and its subsidiary, Bollinger Motors. This order, valued at approximately
From a financial perspective, this agreement underscores Bollinger Motors’ growing influence and aligns with its strategic goals to penetrate the commercial fleet market. The federal clean vehicle purchasing incentives under the Inflation Reduction Act, providing
Short-Term Implications: The immediate market reaction could be positive due to the significant order value and association with a reputable client. It could result in a temporary boost in stock prices, driven by investor optimism.
Long-Term Implications: For sustained long-term growth, Mullen must continue to secure such high-value orders and maintain consistent quality and service. The successful execution of this order could lead to further contracts and partnerships in the future.
This agreement highlights the expanding market for medium-duty electric vehicles (EVs), particularly within fleet management companies. The Bollinger B4 being the first medium-duty, all-electric truck offered by Doering indicates a shift towards more sustainable and eco-friendly fleet options among major players. This demand aligns with broader industry trends, where sustainability and regulatory incentives are pushing companies to adopt electric vehicles.
The strategic alliance with Doering Fleet Management provides Bollinger with access to a well-established customer base that seeks reliable and innovative fleet solutions. This move not only strengthens Bollinger's market position but also validates its product capabilities in real-world commercial applications.
Moreover, the collaboration with various partners like Our Next Energy for battery packs and Roush Industries for vehicle assembly indicates a robust supply chain strategy, important for scaling operations and meeting delivery timelines.
Industry Trends: The commercial EV market is witnessing rapid growth, driven by advancements in battery technology, regulatory support and increasing corporate commitments to sustainability. As a result, companies like Bollinger that can offer reliable and cost-effective EV solutions are well-positioned to capitalize on this growth.
Investor Takeaway: Investors should monitor Bollinger's ability to deliver on this order and manage its supply chain efficiently. Successful fulfillment could lead to additional orders and reinforce the company's reputation in the commercial EV space.
The Bollinger B4 Chassis Cab, an all-new battery electric Class 4 commercial truck, showcases advanced technological features designed specifically for fleet and upfitter needs. The 800-volt battery system is a standout feature, providing enhanced capacity, efficiency and protection of critical components. This high-voltage system can potentially offer longer range and quicker charging times compared to lower voltage counterparts, which is a significant advantage in the commercial sector where downtime directly impacts productivity.
Another important aspect is the vehicle's chassis design, which not only protects the battery but also enhances serviceability and flexibility. This can reduce maintenance costs and downtime, important factors for fleet operators who prioritize operational efficiency and reliability.
The recent qualification for federal clean vehicle purchasing incentives further enhances the attractiveness of the Bollinger B4, making it a financially viable option for fleet managers looking to transition to EVs while benefiting from substantial tax credits.
Technical Perspective: Investors should recognize the importance of these technological advancements as they enhance the truck's marketability and operational efficiency. The focus on practical design and serviceability demonstrates Bollinger's deep understanding of fleet operators' needs, which could drive wider adoption.
Strategic Insight: Continuous innovation in battery technology and vehicle design is critical for maintaining a competitive edge in the rapidly evolving EV market. Mullen and Bollinger’s commitment to these innovations positions them favorably for future growth.
Vehicle order to Doering Fleet Management is valued at approximately
BREA, Calif., July 15, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today its subsidiary, Bollinger Motors, has reached an agreement to sell 70 all-electric Class 4 Bollinger B4 commercial trucks to Doering Fleet Management (“Doering”), one of the nation’s premier fleet management companies. The vehicle order is valued at approximately
“Our agreement with Doering Fleet Management is another important step forward for Bollinger Motors,” said Jim Connelly, chief revenue officer of Bollinger Motors. “Doering is one of the top names in the fleet management world and we are honored to have the Bollinger B4 become an environmentally friendly fleet option for their customers across the country.”
Doering has built its reputation over three decades through outstanding customer service and by matching their customers with the right vehicles for their unique business needs. The Bollinger B4 will be the first medium duty, all-electric truck offered by Doering.
“The Bollinger B4 is an innovative, world-class electric truck with outstanding performance and capability, and Bollinger Motors shares our commitment to outstanding customer service,” said Adam Berger, president of Doering Fleet Management. “For our customers seeking a medium duty electric truck, the Bollinger B4 will be a great option to meet their needs. We look forward to bringing the B4 into our suite of offerings.”
The Bollinger B4 Chassis Cab is an all-new, battery electric Class 4 commercial truck designed from the ground up with extensive fleet and upfitter input. Bollinger's unique chassis design protects the 800-volt battery and components to offer unparalleled capability, flexibility, performance and serviceability in the commercial market. Bollinger Motors recently qualified for federal clean vehicle purchasing incentives under the Inflation Reduction Act, which provides
Bollinger Motors has reached several milestones in recent months, including: receiving the Certificate of Conformity from the Environmental Protection Agency; an 80 vehicle sale to Momentum Groups; a 50 vehicle sale to EnviroCharge; a five vehicle sale with Spencer Manufacturing; the addition of Nacarato Truck Centers, Nuss Truck & Equipment, and LaFontaine Auto Group as dealers and service centers; Our Next Energy in Novi, Michigan, to supply battery packs; Roush Industries in Livonia, Michigan, to manage vehicle assembly operations; Syncron as its warranty administration partner; and Amerit Fleet Solutions as its mobile service provider.
About Doering Fleet Management
Doering Fleet Management is a national fleet management provider serving clients across the USA through offices nationwide. Doering has a unique value proposition focused on career professionals driving long-term relationships with clients. Doering does not seek to be the largest, but rather focuses on being the best fleet management provider clients choose. Doering operates TESlease® (Transportation, Electric, Sustainable), an EV fleet leasing business since 2015, and DreamLease, an exotic vehicle leasing division. Doering also has a robust government and municipal fleet management group based in Orlando, Florida.
To learn more about the company, visit www.DoeringFleetManagement.com
About Bollinger Motors
Founded in 2015 by Robert Bollinger, Bollinger Motors, Inc. is a U.S.-based company headquartered in Oak Park, Michigan. Bollinger Motors is developing all-electric commercial chassis cab trucks, Classes 4-6. In September of 2022, Bollinger Motors became a majority owned company of Mullen Automotive, Inc. (NASDAQ: MULN). Learn more at www.BollingerMotors.com and www.MullenUSA.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
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 completion and delivery of vehicles contemplated by the Doering Fleet Management order, the final purchase value of the order and the continued availability of governmental incentives for electric vehicle purchases. 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.
SOURCE Bollinger Motors
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FAQ
What is the value of Bollinger Motors' recent order from Doering Fleet Management for MULN stock?
When will Bollinger Motors start delivering the B4 trucks to Doering Fleet Management?
What tax incentives are available for the Bollinger B4 trucks under the Inflation Reduction Act?
What recent certifications has Bollinger Motors received for its B4 trucks?
