BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), through its subsidiary Bollinger Motors, announced a significant sales agreement with Momentum Groups for 80 Bollinger B4 electric trucks, totaling approximately $13.2 million. This deal underscores the growing demand for electric vehicles (EVs) in commercial fleet operations.
The Bollinger B4, an all-electric Class 4 commercial truck, will be upfitted by Momentum Groups to meet various service needs, including mobile EV charging stations, box trucks, and flatbeds. The vehicles are scheduled for delivery following the start of Bollinger Motors' production in the latter half of 2024.
The transaction is notable not only for its size but also for the Bollinger B4's eligibility for federal tax incentives. Under the Inflation Reduction Act, each Bollinger B4 truck qualifies for a $40,000 federal tax credit, which could significantly reduce the total cost of ownership for Momentum Groups.
Momentum Groups, a leader in fleet management and EV charging solutions, has been recognized for its comprehensive service offerings, ranging from vehicle procurement to innovative charging infrastructure. The partnership with Bollinger Motors aligns with Momentum's commitment to environmental sustainability and operational efficiency.
Robert Bollinger, founder and CEO of Bollinger Motors, expressed enthusiasm for the partnership, highlighting Momentum's role as an innovator in mobile charging solutions. Jack Pyros, president of Momentum, echoed this sentiment, emphasizing the shared goal of reducing greenhouse emissions.
This agreement follows a series of strategic moves by Bollinger Motors, including expanding its dealership and service center network, securing battery supply partnerships, and establishing vehicle assembly operations. The company's strategic positioning within the EV market is further strengthened by its majority owner, Mullen Automotive, which has two U.S.-based vehicle plants and recently began commercial vehicle production.
The information is based on a press release statement from Bollinger Motors, which has been paraphrased to maintain an unbiased and factual tone, in accordance with journalistic standards.
In other recent news, Mullen Automotive has been making significant strides in the electric vehicle sector. The company's Mullen THREE EV truck has been made eligible for a $15,000 state rebate in Massachusetts, reducing the effective price for buyers to approximately $46,000. Mullen has also expanded its dealership network, partnering with Eco Auto in New England, and secured an order for 13 commercial EVs.
The company's expansion into the European EV market has been marked by the appointment of Alain Van Munster as Vice President of Sales for Europe, Middle East, and Africa, and the securing of its first European orders for 93 EVs. Mullen Automotive has also unveiled an all-electic mobile EV charger, PowerUP, marking a significant shift from their previous gasoline-powered platform.
In addition, the company has reported an $8.25 million deal with EnviroCharge for the sale of 50 Bollinger B4 all-electric commercial trucks. Lastly, Mullen Automotive has announced partnerships with Ziegler Truck Group and Range Truck Group to distribute its commercial EVs, enhancing its presence in the Pacific Northwest and upper Midwest regions of the United States. These are all recent developments that highlight Mullen's commitment to sustainability and its strategic approach to expanding its global footprint in the EV market.
InvestingPro Insights
As Mullen Automotive, Inc. (NASDAQ: MULN) makes inroads into the electric vehicle (EV) market with its recent sales agreement, investors and industry observers are closely monitoring the company's financial health and market performance. According to InvestingPro data, Mullen Automotive's market capitalization currently stands at a modest $43.63 million, reflecting the scale of its operations within the EV industry.
The company's financial metrics provide a mixed picture. With a negative price-to-earnings (P/E) ratio over the last twelve months as of Q2 2024, Mullen Automotive is not currently profitable, a common scenario for many growth-focused companies in the EV space. Moreover, the gross profit margin is significantly negative at -501.56%, indicating that the cost of goods sold exceeds the company's revenue, which could be attributed to upfront investments and the scaling up of production capabilities.
Despite these challenges, two InvestingPro Tips highlight notable aspects of Mullen's strategic approach. Firstly, management's aggressive share buyback initiative could signal confidence in the company's future prospects. Secondly, holding more cash than debt on its balance sheet provides Mullen with a degree of financial flexibility, which is crucial for a company in an industry characterized by rapid innovation and capital-intensive growth.
Investors interested in a deeper dive into Mullen Automotive's prospects can find additional insights on InvestingPro, where 16 more InvestingPro Tips are available. For those looking to leverage these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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