BREA, Calif. - Mullen Automotive, Inc. (NASDAQ:MULN), which owns a majority stake in Bollinger Motors, has announced that Bollinger has received California Air Resources Board (CARB) certification for its all-electric B4 chassis truck, a Class 4 commercial vehicle. This certification is crucial for sales in not only California but also other CARB-compliant states and the District of Columbia, which have adopted stringent vehicle standards under Section 177 of the Clean Air Act.
The CARB certification enables Bollinger’s B4 truck customers to access additional state incentives, including the California HVIP project, which can offer a rebate of up to $60,000. This is on top of the $40,000 IRS rebate, potentially providing customers with up to $100,000 in savings.
Bollinger Motors is set to start production of the B4 on September 16, 2024, with customer deliveries expected to commence in October. This step marks a significant achievement for Bollinger Motors in its quest to meet environmental standards and customer expectations for electric commercial vehicles.
In recent months, Bollinger Motors has accomplished several milestones, including obtaining an EPA Certificate of Conformity, offering full warranty coverage for the B4 chassis cab, and securing sales agreements with various fleet management companies. The company has also expanded its dealer and service network, partnered with a battery pack supplier, and selected a warranty administration partner.
Mullen Automotive has been expanding its presence in the electric vehicle market, with vehicle production initiated at its Tunica, Mississippi plant in August 2023. It has also obtained IRS approval for federal EV tax credits and expanded its commercial dealer network across the United States.
The information in this article is based on a press release statement from Mullen Automotive, Inc.
In other recent news, Mullen Automotive has been making significant strides in the electric vehicle market. The company has entered into a $210 million contract with Volt Mobility, a UAE-based leasing company, to supply 3,000 Class 1 and Class 3 EVs. The deliveries, part of a 16-month schedule, have already begun. Mullen Automotive has also issued over 13 million shares to Esousa Holdings LLC and over 3 million shares to Silverback Capital Corporation to fund its operations.
Additionally, Mullen's subsidiary, Bollinger Motors, has partnered with Texas Consulting & Development, LLC (TCD) to supply Bollinger B4 Class 4 electric trucks, aiming to enhance TCD's clean energy solutions and reduce carbon emissions. Bollinger Motors has also expanded its commercial EV dealer network in key Western U.S. markets through a partnership with TEC Equipment Inc.
Mullen Automotive has set a production date for the Bollinger B4, a Class 4 electric commercial truck, on September 16, 2024, with deliveries expected to begin in October 2024. The Bollinger B4 has qualified for federal clean vehicle tax credits under the Inflation Reduction Act, offering significant incentives for its adoption. These are the latest developments in Mullen Automotive's operations.
InvestingPro Insights
As Mullen Automotive (NASDAQ:MULN) progresses with its electric vehicle initiatives, including the significant CARB certification for Bollinger Motors' B4 chassis truck, investors are closely monitoring the company's financial health and stock performance. Here are some key insights based on real-time data from InvestingPro:
InvestingPro Data indicates that Mullen Automotive currently has a market capitalization of $30.05 million. The company's stock is trading near its 52-week low, with a previous close at $0.19. This price point could represent a potential entry opportunity for investors who believe in the company's long-term strategy and are willing to navigate the associated risks.
An important InvestingPro Tip to consider is that Mullen Automotive's stock has experienced significant price volatility, with a one-month total return of -68.35% and a three-month total return of -93.39%, highlighting the stock's high-risk nature. Moreover, the company's short-term obligations exceed its liquid assets, which could pose liquidity challenges.
Investors should note that Mullen Automotive has been quickly burning through cash, which is reflected in the company's gross profit margin for the last twelve months as of Q3 2024, standing at -1364.48%. This indicates that the company spends substantially more to produce its goods than it earns from sales, underscoring the importance of efficient cost management and capital raises for future operations.
For those interested in deeper analysis and more InvestingPro Tips, there are an additional 17 tips available on InvestingPro's platform, which can be accessed at https://www.investing.com/pro/MULN. These tips provide valuable insights into Mullen Automotive's financial metrics, stock performance, and industry position, helping investors make informed decisions.
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