Mullen CEO Shares Recent Milestones with Committed Capital of $250M; Highlights Include 2 State Incentive Approvals for Class 3 EV Trucks, Commercial Sales and Technology Advancements and Dealer Network Expansion
June 20 2024 - 9:00AM
via IBN -- Mullen Automotive Inc. (NASDAQ: MULN), an electric
vehicle (“EV”) manufacturer, today provides a shareholder update
from CEO and Chairman David Michery on various efforts and Company
initiatives.
“We continue to make solid progress across our commercial
vehicle programs. We are also actively pursuing M&A discussions
with other EV companies to increase our vehicle portfolio and
market opportunity,” Michery said. “Additionally, we have obtained
significant funding commitments of more than $250 million to
further our continued progress and future.”
Recent Highlights Include:
- In May 2024, Mullen
entered into a new agreement with various investors for a $50
million commitment with an additional option for $50 million
subject to certain conditions.
- In May 2024, the
Company announced the execution of a committed equity line of
credit for $150 million of financing.
- Company has up to
$250 million in committed capital subject to certain
conditions.
- In June, Mullen
received approval for the Mullen THREE, Class 3 truck qualifying
for a $15,000 incentive through the State of Massachusetts MOR-EV
program. Massachusetts is a CARB approved state with a similar
program to California’s Air Resource program which in April
approved the Mullen THREE for a $45,000 HVIP cash rebate voucher at
time of vehicle purchase.
- In June, Mullen’s
subsidiary, Bollinger Motors, received a $13.2 million estimated
sales order from Momentum Groups for Bollinger’s B4 all-electric
Class 4 truck.
- In June, the Company
added its fifth dealer to its retail commercial dealer network with
the addition of Massachusetts-based Eco Auto. In May, Ziegler Truck
Group and Range Truck Group, National Auto Fleet Group and
Pritchard Commercial EV were added to Mullen’s network.
- In May 2024, the
Company announced new European Distributor (GAMA) and their first
commercial fleet order for 40 Mullen-GOs to food delivery upfitter,
Antidoto SA. The initial PO is valued at $440,000 USD. To manage
the European expansion effort, Mullen announced the appointment of
former European Manheim and Copart executive, Alain Van Munster, as
Vice President of Sales for the EMEA.
- In May 2024,
Bollinger Motors announced sales of 50 B4 all-electric Class
trucks. Deal estimated at $8.2 million.
Battery Technology Update
- Mullen has made significant strides towards the integration of
solid-state polymer battery packs into commercial Class 1 vehicles.
The Company has identified lead suppliers for development and
components and issued initial purchase orders to support this
pivotal program.
- Mullen’s Class 1 EV cargo van with solid-state polymer pack
with significant improvement to range will be fully certified for
production and sale in second half of 2025.
- To date, solid-state battery packs have been integrated into
the Mullen ONE cargo van for testing purposes, enhancing its
vehicle range to over 200 miles. This marks a significant
advancement in the Company’s commitment to delivering efficient and
sustainable mobility solutions.
- In conjunction with the solid-state battery vehicle
integration, Mullen will introduce a new POWER BOOST battery
exchange program. This program will offer our customers the
opportunity to upgrade to the solid-state pack, providing enhanced
range benefits through a seamless battery trade-in program.
- The Company is in
the process of purchasing additional manufacturing equipment assets
and technology from a leading battery technology provider to build
both low voltage and high voltage LFP.
- Mullen is working
with a leading battery technology provider to build prototype
sodium ion batteries to install and test in commercial vehicles.
Utilization of this technology will reduce the Company’s dependency
on foreign made components. Pack completion is expected Q2 2025
with testing and validation to begin thereafter.
- The Company has recently announced the development of a new
PowerUP mobile DC fast charging truck to be integrated on the
all-electric Mullen THREE, Class 3 cab chassis truck. The new
design will provide multiple scaling options to meet various market
needs, ranging from 10kW to 1MW with targeted completion in Q4
2024. The new PowerUP features Level 3 DC fast charging, off-grid
AC power, and micro-grid connectivity, making it suitable for
multiple applications. A significant advantage of the battery
powered vehicle is quiet operation with minimal noise pollution,
unlike traditional fossil fuel powered generators. This benefit
makes it ideal for use in noise-sensitive environments like urban
centers, hospitals, parking garages, campuses and even residential
areas.
Mullen Class 1 and 3 Commercial Vehicles
Mullen has been actively engaging with potential customers
through pilot programs and ride-and-drive events. These events are
aimed at allowing potential customers to experience the vehicles
firsthand, which is a crucial gateway in influencing buying
decisions.
The Company’s current fleet customer pipeline includes Yale
University, Princeton University, UCLA, Enterprise Fleet Services,
DB Schenker and Mobile Road Service Solutions, a AAA provider.
Recent ride-and-drive activity includes Fleet Forward: Port of
LA, Home Delivery World, ACT Expo, Government Fleet Expo, NAFA
Institute & Expo and NTEA Work Truck Week.
In additional to its U.S. activities, Mullen is preparing
significant pilot programs in Europe and Canada and is actively
deploying Class 1 and Class 3 EVs to Europe. The Company is also
planning to deploy vehicles to Canada with key prospective partners
including a major telecom company, which has already tested vehicle
telematics with Mullen. Overall, the Company is actively focused on
establishing the brand in new markets.
Foreign Trade Zone, Logistics and Supply Change
Management Update
- In May 2024, the
Company received approval from the Department of Commerce for
Foreign Trade Zone (“FTZ”) status at its Tunica, Mississippi,
commercial vehicle manufacturing facility. The addition of the FTZ
is projected to provide an estimated $20 million in deferred
working capital for FY2024 and FY2025. For international sales, the
Company is now 100% exempt from duties and taxes owed on vehicles
exported, returning a bottom-line pick-up of up to 27% on vehicle
kits and 11% on vehicle batteries for a blended average of 20% on
the full duty cost associated with both Class 1 EV cargo vans and
Class 3 EV trucks.
- To address constant
supply chain cost challenges, Mullen is engaged with a new global
logistics supplier to address freight volatility and mitigate
current market conditions for international freight shipments.
About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based
automotive company building the next generation of commercial
electric vehicles (“EVs”) with two United States-based vehicle
plants located in Tunica, Mississippi, (120,000 square feet) and
Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen
began commercial vehicle production in Tunica. In September 2023,
Mullen received IRS approval for federal EV tax credits on its
commercial vehicles with a Qualified Manufacturer designation that
offers eligible customers up to $7,500 per vehicle. As of January
2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen
THREE, a Class 3 EV cab chassis truck, are California Air Resource
Board (“CARB”) and EPA certified and available for sale in the U.S.
Recently, CARB issued HVIP approval on the Mullen THREE, Class 3 EV
truck, providing up to a $45,000 cash voucher at time of vehicle
purchase. The Company has also recently expanded its commercial
dealer network with the addition of Pritchard EV, National Auto
Fleet Group, Ziegler Truck Group, Range Truck Group and Eco Auto,
providing sales and service coverage in key Midwest, West Coast and
Pacific Northwest and New England markets. The Company also
recently announced Foreign Trade Zone (“FTZ”) status approval for
its Tunica, Mississippi, commercial vehicle manufacturing center.
FTZ approval provides a number of benefits, including deferment of
duties owed and elimination of duties on exported vehicles.
To learn more about the Company, visit www.MullenUSA.com.
Forward-Looking Statements
Certain statements in this press release that are not historical
facts are forward-looking statements within the meaning of Section
27A of the Securities Exchange Act of 1934, as amended. Any
statements contained in this press release that are not statements
of historical fact may be deemed forward-looking statements. Words
such as "continue," "will," "may," "could," "should," "expect,"
"expected," "plans," "intend," "anticipate," "believe," "estimate,"
"predict," "potential" and similar expressions are intended to
identify such forward-looking statements. All forward-looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements, many of which are
generally outside the control of Mullen and are difficult to
predict. Examples of such risks and uncertainties include but are
not limited to if and when the capital commitments made to the
Company will materialize; the outcome of the Company’s discussions
and negotiations for acquisitions of EV OEMS; whether the OTA
technology acquired by the Company will prove successful; the
duration and availability of state and federal EV incentives;
whether Bollinger Motors will be successful in fulfilling sales
orders for its vehicles; whether the Company will achieve its goals
of deploying its vehicles in Europe, Canada and other international
markets; whether the Company will be successful with its battery
technology and extended range initiatives or meet the anticipated
battery development, production, integration and sales timelines;
what the resultant financial and other impacts of the Foreign Trade
Zone status at the Company’s Tunica, Mississippi, facility will
prove to be; and whether the Company will be successful in
concluding sales contracts or selling vehicles to its referenced
fleet customer pipeline. Additional factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements can be found in the most recent annual
report on Form 10-K, quarterly reports on Form 10-Q and current
reports on Form 8-K filed by Mullen with the Securities and
Exchange Commission. Mullen anticipates that subsequent events and
developments may cause its plans, intentions and expectations to
change. Mullen assumes no obligation, and it specifically disclaims
any intention or obligation, to update any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by law. Forward-looking
statements speak only as of the date they are made and should not
be relied upon as representing Mullen’s plans and expectations as
of any subsequent date.
Contact:
Mullen Automotive, Inc.+1 (714) 613-1900www.MullenUSA.com
Corporate Communications:IBN
(InvestorBrandNetwork) Los Angeles, California
www.InvestorBrandNetwork.com 310.299.1717 Office
Editor@InvestorBrandNetwork.com
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