BREA, Calif. – Mullen Automotive, Inc. (NASDAQ:MULN), through its subsidiary Bollinger Motors, announced the pricing for its all-electric Bollinger B4 Chassis Cab, setting the Manufacturer's Suggested Retail Price (MSRP) at $158,758. The B4, a Class 4 commercial truck, commenced serial production this week and is slated to begin customer deliveries in October 2024.
The Bollinger B4 has been designed with input from fleets and upfitters, featuring a unique chassis that safeguards its 158-kwh battery pack, enhancing both capability and safety in the commercial market. The vehicle is now available for order and will be distributed through Bollinger’s national dealer network.
Potential purchasers of the 2025 B4 can take advantage of state and federal incentives, which may exceed $100,000. These incentives include a tax credit of up to $40,000 per vehicle under the Inflation Reduction Act of 2022, for which Bollinger Motors has received IRS approval as a qualified manufacturer. Additionally, the company's recent certification by the California Air Resources Board (CARB) opens the door to California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), potentially offering a rebate of up to $60,000 when combined with the federal rebate.
The B4 can be customized with various dealer accessories and factory options, including an e-PTO unit available from January, to meet specific fleet requirements. Jim Connelly, chief revenue officer for Bollinger Motors, stated that the B4 is a world-class electric truck created to fill an important segment of the Class 4 commercial fleet market, emphasizing its competitive price point and the significant incentives available to customers.
Bollinger Motors, a majority-owned company of Mullen Automotive since September 2022, specializes in developing all-electric commercial chassis cab trucks. The company's progress includes multiple vehicle sales to large fleet management groups, establishing dealer and service center agreements, and securing a mobile service provider.
This announcement follows a series of company updates, including vehicle sales, service agreements, and supply chain partnerships. The information provided in this article is based on a press release statement from Mullen Automotive, Inc.
In other recent news, Mullen Automotive has announced a series of strategic developments. The company has expanded its employee equity incentive program by 11 million shares, reflecting its commitment to fostering and retaining talent in the competitive electric vehicle market. Mullen Automotive also initiated a 1-for-100 reverse stock split, following approval from stockholders, to comply with Nasdaq's minimum bid price requirement.
In a move to strengthen its market position, Mullen Automotive began shipping the first commercial EV cargo vans and trucks to Volt Mobility, marking the start of a $210 million contract for 3,000 Class 1 and Class 3 EVs. Furthermore, the company's subsidiary, Bollinger Motors, has expanded its presence in the market by receiving California Air Resources Board certification for its B4 chassis truck, a Class 4 commercial vehicle.
Bollinger Motors has also entered into agreements with Texas Consulting & Development, LLC and Affinity Truck Center to supply Bollinger B4 Class 4 electric trucks and expand its dealer network, respectively. Mullen Automotive has strengthened its financial position by issuing over 13 million shares to Esousa Holdings LLC and over 3 million shares to Silverback Capital Corporation. These are recent developments in Mullen Automotive's operations.
InvestingPro Insights
As Mullen Automotive, Inc. (NASDAQ:MULN) gears up for the production and delivery of its Bollinger B4 Chassis Cab, investors and potential customers are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Mullen Automotive has a market capitalization of $16.61 million, reflecting its current valuation in the market.
InvestingPro Tips for Mullen Automotive suggest that the company may face challenges with its financial obligations, as it may have trouble making interest payments on its debt. This is a crucial consideration for stakeholders, given the substantial investment required for the production of the Bollinger B4. Additionally, the company's stock is currently in oversold territory according to the Relative Strength Index (RSI), which could indicate a potential rebound or further volatility ahead.
Investors should also note that Mullen Automotive has experienced significant revenue decline, with a -49.17% change over the last twelve months as of Q3 2024. This is coupled with a gross profit margin of -1364.48%, indicating that the company spends significantly more to produce its goods than it earns from sales. These metrics may raise concerns about the company's current profitability and cost management strategies.
For those interested in a deeper dive into the financial health and stock performance of Mullen Automotive, additional InvestingPro Tips are available at https://www.investing.com/pro/MULN. There are 18 more tips listed on InvestingPro, providing a comprehensive analysis of the company's financial standing and stock market behavior.
The InvestingPro Fair Value for Mullen Automotive's stock is currently assessed at $8.25, which may guide investors in determining the potential value of the stock compared to its current trading price. As Mullen Automotive continues to navigate the competitive electric vehicle market, these InvestingPro Insights can help stakeholders make informed decisions.
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