BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), a manufacturer of electric vehicles (EVs), has announced the expansion of its European commercial EV sales operations with the appointment of Alain Van Munster as the new Vice President of Sales for Europe, Middle East, and Africa (EMEA). Van Munster, who has over 25 years of experience in the automotive and fleet industries, is expected to drive the company's growth in these regions.
The company has recently secured its first European orders, which include 93 EVs. This order comprises 40 all-electric Mullen-GO urban delivery vehicles for GAMA (LON:GAMA) in Serbia and 53 commercial vans and trucks for Antidoto SA in Switzerland. These orders mark an important step for Mullen's presence in the European market.
Mullen Automotive began its commercial vehicle production in Tunica, Mississippi, in August 2023, and has since received IRS approval for federal EV tax credits on its commercial vehicles. Additionally, the Mullen ONE and Mullen THREE vehicles have been certified by the California Air Resource Board (CARB) and the Environmental Protection Agency (EPA) and are available for sale in the U.S. The Mullen THREE truck also qualifies for a CARB rebate of up to $45,000 at the time of purchase.
The company's strategic expansion includes the addition of Pritchard EV and National Auto Fleet Group to its commercial dealer network, enhancing its sales and service coverage in key U.S. markets. Furthermore, Mullen's Tunica manufacturing center has been granted Foreign Trade Zone (FTZ) status, offering benefits such as duty deferment and the elimination of duties on exported vehicles.
This growth initiative comes amid increasing demand for EVs in Europe and is a significant move for Mullen Automotive as it aims to establish a stronger foothold in the commercial EV market.
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 (EV) sector. The company secured a $440,000 order from Antidoto SA for 40 Mullen-GO urban delivery vehicles, marking its entrance into the European market. Mullen also unveiled an all-electric mobile EV charger, PowerUP, a zero-emission solution that signifies a shift from their previous gasoline-powered platform.
Mullen's expansion efforts have extended to the Balkans Region, partnering with distributor GAMA to offer its full lineup of commercial EVs. The company also reported an $8.25 million deal with EnviroCharge, involving the sale of 50 Bollinger B4 all-electric commercial trucks for a mobile charging solution. Mullen's subsidiary, Bollinger Motors, is expected to deliver these vehicles in the latter half of 2024.
Mullen Automotive also 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 recent developments underscore 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) forges ahead with its expansion into the European commercial EV market, recent data and insights from InvestingPro paint a detailed picture of the company's financial health and market position. The company's market capitalization currently stands at a modest $44.51 million, reflecting the size and scale of the business in the broader automotive industry. Despite the challenges, Mullen holds more cash than debt on its balance sheet, which could provide a cushion as it scales operations overseas.
However, the road ahead may be bumpy, as evidenced by a strikingly high negative gross profit margin of -254.49% over the last twelve months as of Q2 2024. This underlines the company's difficulties in achieving profitability per unit sold, an area that will require significant improvement as Mullen seeks to increase its market share in the competitive EV space. Additionally, the stock has experienced substantial price volatility, with a 1-year price total return plummeting to -99.4%, underscoring the investment risk associated with the company.
InvestingPro Tips highlight that Mullen Automotive is a niche player in the electric vehicle industry, a sector known for rapid innovation and intense competition. As the company navigates this dynamic market, investors may find value in the comprehensive analysis available on InvestingPro. For those interested in deeper insights, there are 16 additional InvestingPro Tips available, providing a more granular view of Mullen's strategic positioning and financial metrics. To gain access to these valuable tips, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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