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Mullen Automotive makes first commercial EV sale in Massachusetts

EditorEmilio Ghigini
Published 02/07/2024, 15:06
MULN
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BREA, Calif. – Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, today announced its first commercial EV sale in Massachusetts through its dealership partner, Eco Auto. The vehicle will be delivered to a local company specializing in custom home building, renovations, and property management.

Eco Auto, headquartered in Tewksbury, Massachusetts, is a franchise focused on making EVs more accessible. They offer a range of EVs, hybrids, charging solutions, and expert service. This sale marks the beginning of Mullen's commercial EV presence in the New England market.

Mullen's commercial EV lineup includes the Mullen ONE, a Class 1 cargo van, and the Mullen THREE, a Class 3 cab chassis truck. Both models comply with U.S. Federal Motor Vehicle Safety Standards and have received certifications from the Environmental Protection Agency and the California Air Resources Board (CARB).

The Mullen THREE recently became eligible for a $15,000 incentive through Massachusetts' MOR-EV program, mirroring the $45,000 cash rebate voucher available through California's HVIP program.

Mullen Automotive, with vehicle plants in Mississippi and Indiana, began commercial vehicle production in August 2023. In September 2023, Mullen's commercial vehicles received IRS approval for federal EV tax credits, offering up to $7,500 per vehicle for eligible customers.

The company has expanded its commercial dealer network, including Eco Auto, to enhance sales and service coverage across key U.S. markets. Additionally, Mullen's Tunica, Mississippi manufacturing center has obtained Foreign Trade Zone status, providing benefits such as duty deferment and elimination on exported vehicles.

The information in this article is based on a press release statement. Mullen Automotive and its partners are optimistic about the potential for their commercial EVs to provide businesses with efficient and eco-friendly transportation options. However, the company has also cautioned about the risks and uncertainties that could affect future sales and expansion efforts.

In other recent news, electric vehicle manufacturer Bollinger Motors, a subsidiary of Mullen Automotive, received EPA certification for its B4 Chassis Cab, a Class 4 electric commercial truck.

The company has also secured a deal to supply Momentum with 80 of these trucks. Additionally, Mullen Automotive's Mullen THREE EV truck has become eligible for a $15,000 state rebate in Massachusetts, reducing the price for buyers.

The company also expanded its dealer network through a partnership with Eco Auto in New England and secured an order for 13 commercial EVs. Furthermore, Mullen Automotive has expanded into the European EV market with the appointment of Alain Van Munster as Vice President of Sales for Europe, Middle East, and Africa.

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 are all recent developments in the company's operations.

InvestingPro Insights

In a dynamic and rapidly evolving electric vehicle (EV) market, Mullen Automotive's (NASDAQ: MULN) latest commercial EV sale in Massachusetts signifies a positive stride in its expansion efforts. With a focus on the New England market, Mullen's partnership with Eco Auto and the subsequent sale of its EVs represent a key milestone in its growth narrative. As investors and stakeholders evaluate Mullen's performance and potential, certain metrics and insights from InvestingPro offer a deeper look into the company's financial health and stock behavior.

InvestingPro data indicates that Mullen Automotive currently holds a market capitalization of $37.71 million USD, suggesting a relatively small player within the EV industry. The company's Price / Book ratio, standing at 0.4 as of the last twelve months ending Q2 2024, points to a potentially undervalued stock when compared to the industry average, aligning with the InvestingPro Tip that the stock is trading at a low Price / Book multiple. This could be particularly relevant for value-oriented investors seeking entry points into the EV sector.

Despite the challenges, two InvestingPro Tips highlight critical aspects of Mullen's financial situation. Firstly, the company holds more cash than debt on its balance sheet, which can provide a cushion against operational uncertainties and support further investment in its commercial vehicle lineup. Secondly, the Relative Strength Index (RSI) suggests that Mullen's stock is currently in oversold territory, possibly indicating a buying opportunity for contrarian investors.

It's important to note that Mullen's stock has experienced significant price volatility, as evidenced by the 46.58% decline in its price over the past month and an 81.18% drop over the last six months. This level of volatility requires careful consideration from investors who are weighing the potential risks and rewards of investing in Mullen's stock.

For readers interested in a more comprehensive analysis, InvestingPro offers additional tips on Mullen Automotive, which can be accessed through their platform. By using the coupon code PRONEWS24, readers can avail up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, granting access to exclusive insights that could further inform investment decisions. In total, there are 19 additional InvestingPro Tips available for Mullen Automotive, providing a rich resource for in-depth analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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