Mullen Announces Bollinger Motors Sale of 50 Bollinger B4 Chassis Cab EV Trucks to EnviroCharge

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) announced that Bollinger Motors, a subsidiary, has sold 50 Bollinger B4 Chassis Cab EV Trucks to EnviroCharge for an estimated value of $8.25 million. The trucks will incorporate EnviroCharge's mobile clean-propane-powered charging systems to provide flexible and convenient charging for electric vehicle fleets. Production is expected to commence in the second half of 2024, with vehicles eligible for $40,000 federal tax credits under the Inflation Reduction Act. This deal enhances the partnership between Mullen and EnviroCharge to promote innovative electric transportation solutions.

Positive

• Deal value estimated at $8.25 million.
• Bollinger B4 trucks eligible for $40,000 federal tax credits.
• Partnership with EnviroCharge to provide a mobile clean-fuel EV charging solution.
• Enhanced product offering with mobile charging capabilities.
• Support from various dealers and service partners like Nacarato Truck Centers and Lafontaine Auto Group.
• Battery packs supplied by Our Next Energy.
• Vehicle assembly managed by Roush Industries.
• Qualified for federal clean-vehicle purchasing incentives.

Negative

• Production of the Bollinger B4 trucks will only begin in the second half of 2024, delaying revenue realization.
• Dependence on the success of voucher incentive programs for fleet owners to purchase the vehicles.
• Potential financial risks if the partnership with EnviroCharge does not yield expected returns.

Financial Analyst

The sale of 50 Bollinger B4 Chassis Cab EV Trucks to EnviroCharge has an estimated deal value of $8,250,000. For Mullen Automotive, this deal signifies tangible revenue that could positively impact quarterly financial reports. Considering the timeline, with vehicle possession slated for the second half of 2024, investors should gauge the company’s production capabilities and any potential delays that could impact this revenue flow. The partnership underlines Mullen’s strategy to penetrate the commercial EV market, which is growing due to incentives like the $40,000 federal tax credit per truck under the Inflation Reduction Act. Short-term, this deal could boost investor confidence, elevating the stock price. Long-term, sustained success hinges on Mullen's production efficiency and subsequent sales growth.

Market Research Analyst

This partnership between Bollinger Motors and EnviroCharge reflects a strategic move to address a critical pain point in the EV market – charging infrastructure. By providing a mobile charging solution, EnviroCharge is enhancing EV adoption among fleet owners who might be hesitant due to charging concerns. This innovation can drive demand for Bollinger’s Class 4 commercial trucks, positioning Mullen Automotive to tap into new market segments. Additionally, states with voucher incentive programs and the Inflation Reduction Act tax credits make these vehicles more attractive to buyers, potentially increasing sales volume. Investors should note that although this is a positive development, market acceptance and scalability will determine its long-term success. Monitoring fleet adoption rates and customer feedback will be important in evaluating the market potential.

Tech Expert

The integration of mobile clean-propane-powered charging systems into Bollinger B4 chassis cabs is a notable technological advancement. This solution addresses one of the primary barriers to EV adoption – charging availability. For fleet owners, this innovation offers flexibility and reliability, which are important for operational efficiency. Additionally, the selection of clean-propane as a power source aligns with sustainability goals, appealing to environmentally conscious consumers and businesses. However, investors should consider the feasibility of scaling this technology and the potential challenges of maintaining such systems. Technological reliability and user experience will be key factors in the widespread adoption of these mobile charging units.

Deal value estimated at $8,250,000

Partnership creates innovative mobile charging solution for electric vehicle fleet owners

BREA, Calif., May 22, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today Bollinger Motors (“Bollinger”) has reached an agreement to sell 50 vehicles to EnviroCharge, a provider of convenient and flexible charging solutions for an estimated deal value of $8,250,000 for electric vehicle owners.

EnviroCharge will install its mobile clean-propane-powered charging system on the Bollinger B4 chassis cab, an all-new, all-electric Class 4 commercial truck. By combining the charging unit with the Bollinger B4, EnviroCharge will provide a convenient mobile unit allowing electric vehicle owners to quickly and easily charge EVs anytime, anywhere.

EnviroCharge will take possession of the vehicles after Bollinger Motors launches production in the second half of 2024.

“EnviroCharge shares our commitment and vision to transform the transportation industry,” said Robert Bollinger, founder and CEO of Bollinger Motors. “Innovative electric trucks and charging solutions mean fleets can switch today to save money, reduce emissions and get the job done.”

EnviroCharge will re-sell the newly upfitted vehicles to fleet owners in states with voucher incentive programs. In addition, the vehicles will be eligible for the $40,000 Inflation Reduction Act federal tax credit.

“This is a big step forward for EnviroCharge customers, as it provides a clean-fuel EV charging solution on a zero-emission vehicle,” said Charlie Stockton, CEO of EnviroCharge. “This will create a convenient charging solution providing fleet owners with invaluable peace of mind.”

Today's announcement follows a series of Bollinger Motors announcements in recent months, including: the addition of Nacarato Truck Centers, Nuss Truck & Equipment and LaFontaine Auto Group as dealers and service centers; Our Next Energy in Novi, Michigan, to supply battery packs; Roush Industries in Livonia, Michigan, to manage vehicle assembly operations; Syncron as its warranty administration partner; and Amerit Fleet Solutions as its mobile service provider.

Also, Bollinger Motors recently qualified for federal clean-vehicle purchasing incentives under the Inflation Reduction Act, which provides $40,000 in refundable tax credits per truck.

About EnviroCharge
EnviroCharge, a Service-Disabled Veteran-Owned Charge Point Operating Company (“CPO”), believes that the future of clean transportation begins with a passionate team with the vision to drive transformative technologies using renewable fuels such as hydrogen, renewable propane + DME, renewable natural gas, biodiesel, and renewable diesel. The company offers cost-effective power generation and EV charging solutions that enhance energy resilience while ensuring energy equity.

About Bollinger Motors
Founded in 2015 by Robert Bollinger, Bollinger Motors, Inc. is a U.S.-based company headquartered in Oak Park, Michigan. Bollinger Motors is developing all-electric commercial chassis cab trucks, Classes 4-6. In September of 2022, Bollinger Motors became a majority owned company of Mullen Automotive, Inc. (NASDAQ: MULN).

Learn more at www.BollingerMotors.com and www.MullenUSA.com.

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.

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 or Bollinger Motors and are difficult to predict. Examples of such risks and uncertainties include: (a) Bollinger Motors’ ability to finalize its sales agreement with EnviroCharge and deliver purchased vehicles on schedule; (b) the total realized value to the company from the purchase order; (c) whether Bollinger Motors will meet its anticipated production launch timelines; (d) Bollinger Motors' continued partnership with Nacarato Truck Centers, Nuss Truck & Equipment and LaFontaine Automotive Group; (e) Bollinger Motors' continued partnership with Our Next Energy as a battery supplier; (f) Bollinger Motors' continued partnership with Roush Industries as a contract manufacturer; (g) Bollinger Motors' continued relationship with Syncron as its warranty administration provider; (h) Bollinger Motors’ continued relationship with Amerit Fleet Solutions as its mobile service provider and (i) the continued availability and support for federal commercial vehicle purchasing incentives under the Inflation Reduction Act of 2022. Additional examples of such risks and uncertainties include but are not limited to: (i) Bollinger Motors' ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Bollinger Motors' ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Bollinger Motors' ability to successfully expand in existing markets and enter new markets; (iv) Bollinger Motors' ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Bollinger Motors' business; (viii) changes in government licensing and regulation that may adversely affect Bollinger Motors' business; (ix) the risk that changes in consumer behavior could adversely affect Bollinger Motors' business; (x) Bollinger Motors' ability to protect its intellectual property; (xi) the vehicles developed will perform as expected and (xii) local, industry and general business and economic conditions. 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 Automotive, Inc., of which Bollinger Motors is a partially owned subsidiary, with the Securities and Exchange Commission. Bollinger Motors anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Bollinger Motors 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 Bollinger Motors' plans and expectations as of any subsequent date.

Source: Bollinger Motors

Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

FAQ

What is the estimated value of the deal between Bollinger Motors and EnviroCharge?

The deal is estimated to be worth $8.25 million.

When will Bollinger Motors begin production of the B4 Chassis Cab EV Trucks?

Production is expected to start in the second half of 2024.

What federal tax incentives are available for the Bollinger B4 trucks?

The Bollinger B4 trucks are eligible for $40,000 in federal tax credits under the Inflation Reduction Act.

What is the main feature of the partnership between Mullen and EnviroCharge?

The partnership aims to provide a mobile clean-fuel EV charging solution using EnviroCharge's propane-powered systems on Bollinger B4 trucks.

How will the newly upfitted vehicles be sold to customers?

EnviroCharge will resell the upfitted vehicles to fleet owners in states with voucher incentive programs.