BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle manufacturer, through its subsidiary Bollinger Motors, has announced a service partnership with Amerit Fleet Solutions. The collaboration aims to provide mobile service and maintenance for Bollinger's commercial electric vehicle (EV) fleet customers.
The agreement outlines that Amerit will offer maintenance and warranty services for the Bollinger B4 Chassis Cab, a Class 4 commercial truck, and future vehicles from Bollinger Motors. Services will be provided in key states where permitted by law, focusing on areas beyond the reach of Bollinger's authorized dealers.
Bollinger Motors plans to begin delivering the B4 Chassis Cab in the second half of 2024. This vehicle, designed with input from fleet operators and upfitters, features a unique chassis protecting a 158 kilowatt-hour battery pack, aimed at enhancing capability and safety in the commercial market.
Amerit's mobile service centers are set to complement Bollinger's service strategy by offering on-site repairs and maintenance, thereby reducing vehicle downtime and improving fleet efficiency. With Amerit's nationwide coverage, Bollinger Motors expects to provide a robust sales, service, and warranty network across the United States.
Amerit, known for its custom fleet maintenance programs and nationwide infrastructure, will align its service locations with Bollinger's launch strategy. The company's technicians will undergo extensive safety training as part of Bollinger's curriculum for the B4 and future models.
This partnership follows Bollinger Motors' recent strategic moves, including securing battery supply with Our Next Energy and outsourcing vehicle assembly operations to Roush Industries. Additionally, Bollinger Motors has recently expanded its authorized dealer network and qualified for federal clean vehicle tax credits under the Inflation Reduction Act.
Mullen Automotive, the parent company of Bollinger Motors, has been actively enhancing its commercial EV offerings, with vehicle production already underway at its facilities in Tunica, Mississippi, and Mishawaka, Indiana. The company's Mullen ONE and Mullen THREE EV models are also CARB and EPA-certified, and available for sale in the U.S.
This news is based on a press release statement.
InvestingPro Insights
As Mullen Automotive (NASDAQ: MULN) positions itself within the commercial electric vehicle market, the company's financial health and stock performance are crucial for investors to monitor. According to InvestingPro data, Mullen Automotive currently has a market capitalization of approximately $39.51 million. However, the company's aggressive growth strategy and recent partnerships must be weighed against its financial metrics, such as its Price to Book (P/B) ratio of 0.19 as of the last twelve months ending Q1 2024, which suggests the stock is trading at a low multiple of its book value. This could indicate that the stock is potentially undervalued relative to its assets.
InvestingPro Tips highlight that Mullen Automotive has more cash than debt on its balance sheet, which is a positive sign for the company's liquidity and financial resilience. Additionally, the company's management has been actively buying back shares, demonstrating confidence in the company's prospects. On the other hand, the company is also experiencing a rapid cash burn and weak gross profit margins, with a gross profit margin of -458.51% for the same period, reflecting significant challenges in cost management and profitability.
For investors interested in the volatility and performance of Mullen Automotive's stock, it is noted that the stock has experienced high price volatility and has seen a strong return over the last month, with a price total return of 50.75%. Nevertheless, the stock has suffered considerable declines over longer periods, with a one-year price total return of -99.55%.
Investors looking to delve deeper into Mullen Automotive's financials and stock performance can find additional InvestingPro Tips by visiting https://www.investing.com/pro/MULN. For those considering a subscription to InvestingPro, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 17 more InvestingPro Tips available that can provide further insights into Mullen Automotive's financial and stock performance.
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