University of Virginia Purchases Additional Mullen Commercial Vehicles, Which Follows Recent Significant 180 Electric Vehicle Order from Eco Auto Valued at $7.7 Million

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) announces a follow-on purchase of Mullen ONE Class 1 EV cargo vans by the University of Virginia (UVA) for its Sustainable Fleet Department. This order comes after UVA's initial purchase in 2023 and follows a recent $7.7 million, 180-vehicle order from dealer partner Eco Auto. The growing demand highlights the increasing market for Mullen's electric commercial vehicles.

UVA's purchase aligns with its sustainability goals, including achieving carbon neutrality by 2030 and fossil fuel independence by 2050. The university has already electrified 13% of its Facilities Management vehicles and increased EV usage by 275% from 2020 to 2023. Mullen's EV lineup includes the Mullen ONE and Mullen THREE, both compliant with U.S. safety and emissions standards and eligible for various state incentives.

Positive

• Follow-on purchase from University of Virginia, indicating customer satisfaction
• Recent $7.7 million order for 180 vehicles from dealer partner Eco Auto
• Growing demand for Mullen's electric commercial vehicles
• Alignment with universities' sustainability goals
• Mullen vehicles eligible for state incentives up to $45,000 per vehicle

Negative

• None.

Insights

Financial Analyst

The University of Virginia's follow-on purchase of Mullen's commercial EVs, coupled with the recent $7.7 million order from Eco Auto, signals growing demand for Mullen's products. This momentum could positively impact Mullen's revenue stream and market position. However, the exact number of vehicles in this new UVA order isn't specified, making it challenging to quantify the direct financial impact. The company's expanding footprint in the higher education sector and eligibility for significant EV incentives ($15,000 in Massachusetts and $45,000 in California for the Mullen THREE) could drive future sales growth. Investors should monitor Mullen's ability to scale production and maintain profit margins as demand increases.

Sustainability Expert

UVA's repeated purchase of Mullen EVs aligns with its ambitious sustainability goals, including carbon neutrality by 2030 and fossil fuel independence by 2050. The university's progress is notable, with 13% of Facilities Management vehicles already battery-powered and a 275% increase in EV usage from 2020 to 2023. This trend reflects a broader shift in higher education towards sustainable transportation. Mullen's zero-emission vehicles are well-positioned to capitalize on this movement, potentially leading to increased adoption across other universities. The company's focus on last-mile delivery vehicles also addresses a critical need in campus operations, offering both environmental and operational benefits.

Market Research Analyst

Mullen's success in securing repeat orders from UVA and a substantial deal with Eco Auto indicates growing market acceptance of its commercial EVs. The company's strategy of targeting specific sectors like higher education and last-mile delivery appears to be gaining traction. The availability of significant incentives for Mullen's vehicles in states like Massachusetts and California could accelerate adoption, particularly among cost-conscious institutional buyers. However, the EV market is increasingly competitive and Mullen will need to maintain technological edge and cost-effectiveness to sustain its growth. Investors should watch for Mullen's ability to expand its dealer network and secure larger fleet contracts as indicators of long-term success in the commercial EV space.

Mullen announces commercial Class 1 EV delivery to the University of Virginia (UVA) Sustainable Fleet Department

University of Virginia makes follow-on purchase of Mullen’s commercial vehicles following first UVA purchase from 2023

This UVA order follows on the heels of the recently announced significant $7.7 million, 180-vehicle order from dealer partner Eco Auto. This growing demand underscores the increasing market for Mullen's electric commercial vehicles.

BREA, Calif., Aug. 12, 2024 (GLOBE NEWSWIRE) -- via IBN – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, today announces the commercial EV purchase of the Mullen ONE, Class 1 EV cargo van, with the University of Virginia in Charlottesville, VA (“UVA”), for its fleet of commercial vehicles. The order will be fulfilled by Mullen’s commercial retail dealer partner, Randy Marion Automotive Group (“RMA”), based in North Carolina. This delivery is a follow-on purchase to UVA’s original commercial vehicle order from 2023.  Additionally, this UVA order follows on the heels of the recently announced significant $7.7 million, 180-vehicle order, from dealer partner Eco Auto. This growing demand underscores the increasing market for Mullen's electric commercial vehicles.

Mullen’s commercial EV lineup aligns with the overall sustainability targets of universities including reducing both direct emissions from on-site energy production and fleet fuel use.

UVA is actively working to achieve carbon neutrality by 2030 and fossil fuel independence by 2050, as well as reduce nitrogen losses by 30% by 2030. The university has made significant strides in electrifying its fleet, with 13% of Facilities Management vehicles already battery-powered and supported by 24 charging stations. Electric vehicle usage within Facilities Management has surged by 275% from 2020 to 2023, accounting for approximately 9% of total annual miles driven.

This partnership with Mullen marks a second purchase and a major step forward in the university’s commitment to sustainability and reduced carbon emissions. By incorporating the Mullen 1 EV cargo van into its campus operations, the university can further reduce its environmental impact while enhancing efficiency and cost-effectiveness. UVA has selected the Mullen ONE for its zero-emission operation, efficiency and compact design, making it an ideal fit for the demands of campus life.

“We are proud to partner with the University of Virginia in their mission to create a more sustainable campus,” said David Michery, CEO and chairman at Mullen Automotive. “We’re seeing a significant and growing demand for electric vehicles in the higher education sectors as universities lead the transition to clean energy. We are confident that our vehicles will contribute significantly to UVA’s sustainability initiatives.”

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 the California Air Resources Board (“CARB”) certifications denoting strict adherence to clean air emissions standards.

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 a $3,500 MOR-EV incentive in Massachusetts.

About University of Virginia
The University of Virginia (UVA) is an iconic public institution of higher education, boasting nationally ranked schools and programs, diverse and distinguished faculty, a major academic medical center and proud history as a renowned research university. The community and culture of the University are enriched by active student self-governance, sustained commitment to the arts and a robust NCAA Division I Athletics program. As one of the nation’s leading public institutions, UVA pushes the boundaries of what’s possible – always in the name of the greater good. One of the things that makes this possible is an unswerving commitment to initiatives that grow, strengthen and shape our institution for the future.

To learn more about the University of Virginia, visit www.virginia.edu

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, timing of delivery of the ordered vehicle,  whether any additional vehicles will be ordered by UVA or other schools or agencies, and 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

• This is UVA’s Second EV Purchase: Vehicle Order Fulfilled by Randy Marion Automotive in North Carolina

FAQ

What is the latest order Mullen Automotive (MULN) received from the University of Virginia?

The University of Virginia placed a follow-on order for Mullen ONE Class 1 EV cargo vans for its Sustainable Fleet Department, following their initial purchase in 2023.

How much was the recent order Mullen Automotive (MULN) received from Eco Auto?

Mullen Automotive recently received a significant order from dealer partner Eco Auto valued at $7.7 million for 180 electric vehicles.

What are the University of Virginia's sustainability goals related to their vehicle fleet?

The University of Virginia aims to achieve carbon neutrality by 2030, fossil fuel independence by 2050, and reduce nitrogen losses by 30% by 2030. They have already electrified 13% of their Facilities Management vehicles.

What incentives are available for Mullen Automotive (MULN) vehicles?

The Mullen THREE is eligible for a $15,000 incentive through the Massachusetts MOR-EV program and a $45,000 cash rebate voucher through California's HVIP. The Mullen ONE is eligible for a $3,500 MOR-EV incentive in Massachusetts.