Mullen Announces Sale of Mullen ONE to Mr. Appliance Franchisee of Owings Mills, Maryland, Expanding into the Home Service Vertical

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) announces the sale of its Mullen ONE All-Electric Cargo Van to Mr. Appliance of Owings Mills, Maryland, marking the company's first entry into the home service vertical. The sale represents a strategic expansion into a sector where transportation costs typically exceed 30% of operating expenses.

The Mullen ONE offers significant advantages for home service businesses, including up to 57% reduction in fuel expenses, 50% lower maintenance costs, and eligibility for a $7,500 federal tax credit. The vehicle aims to provide cost-effective transportation solutions while supporting sustainability through reduced carbon emissions.

Positive

• First sale into home service vertical, expanding market reach
• Vehicle offers up to 57% reduction in fuel expenses
• Up to 50% reduction in maintenance costs
• Product eligible for $7,500 federal tax credit

Negative

• None.

Insights

Financial Analyst

The sale to Mr. Appliance represents a strategic entry into the $600 billion home services market, though the single-unit sale has minimal immediate revenue impact for Mullen. The key value proposition centers on potential cost savings, with the Mullen ONE promising up to <percent>57%</percent> reduction in fuel costs and <percent>50%</percent> lower maintenance expenses. The <money>$7,500</money> federal tax credit enhances the value proposition, potentially accelerating adoption among cost-conscious fleet operators.

While this represents a new vertical expansion, Mullen's micro-cap status (<money>$8.9M</money> market cap) and single-unit sale suggest near-term financial impact. The company needs substantial fleet orders to achieve meaningful revenue growth. The home services sector's <percent>30%</percent> transportation cost burden presents an attractive target market, but Mullen faces intense competition from established EV manufacturers also targeting this space.

Market Research Analyst

The home services market represents an underserved niche in the commercial EV space. Mr. Appliance's adoption, while modest, could serve as a proof-of-concept for the broader Neighborly network, which includes over 4,800 franchises across 9 home service brands. The total addressable market is significant - home service businesses operate an estimated 3 million service vehicles nationally.

However, market penetration faces headwinds including infrastructure concerns and initial capital costs. The operational benefits must be weighed against the challenges of EV adoption in service-based businesses where vehicle reliability is crucial. This sale represents more of a toe-in-the-water approach rather than a definitive market validation and meaningful fleet adoption will require proven field performance and clear demonstration of the promised cost savings.

Mr. Appliance is a leading national home service brand from Neighborly

BREA, Calif., Dec. 31, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, today announces the sale of the Mullen ONE All-Electric Cargo Van to Mr. Appliance® of Owings Mills, Maryland, marking the company’s first venture into the home service vertical. This milestone sets the stage for Mullen’s expansion into this vital sector, with the Mullen ONE offering home service businesses a cost-effective, efficient solution for transportation. Mr. Appliance Owings Mills, Maryland, is a franchisee of Mr. Appliance and is a national home service brand of Neighborly, offering home repair services across the U.S.

Home services are an essential part of the U.S. economy, contributing significantly to job creation and economic expansion. For operators in this space, managing expenses, particularly transportation costs, is critical to ensuring profitability. With transportation expenses often accounting for over 30% of operating costs, businesses in the home service industry face a growing need for cost-saving solutions.

The Mullen ONE All-Electric Cargo Van offers home service businesses a unique opportunity to reduce transportation expenses, improve operational efficiency, and make a positive impact on the environment.

Key Benefits of the Mullen ONE for Home Service Businesses:

• Significant Cost Savings: The Mullen ONE's all-electric powertrain can reduce transportation costs by cutting fuel expenses up to 57% and eliminating the unpredictable fluctuations in fuel prices that burden traditional internal combustion engine vehicles.
• Lower Maintenance Costs: The Mullen ONE offers up to 50% reduction in maintenance costs with no need for frequent oil changes or costly brake replacements typically required for gas-powered vehicles.
• Affordable Investment: With a competitive price tag and eligibility for a $7,500 federal tax credit, the Mullen ONE is not only an environmentally responsible choice but also a financially attractive investment for home service operators.

By embracing the Mullen ONE, businesses in the home services industry can expect to see substantial savings that drive their bottom line, while contributing to sustainability efforts through the reduction of carbon emissions.

“The home services sector is integral to the economy, and we're excited to help businesses in this space reduce their transportation costs with the Mullen ONE,” said David Michery, CEO and chairman of Mullen Automotive. “With Mr. Appliance of Owings Mills leading the way, we look forward to working with more home service operators to optimize their operations and bring long-term savings to their business.”

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 $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network to seven dealers, which includes Papé Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key West Coast, Midwest, Pacific Northwest, New England and Mid-Atlantic markets.

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 whether any additional vehicles will be ordered by Mr. Appliance of Ownings Mills, Maryland, or any other Mr. Appliance franchisees or how long local and federal governmental incentives for electric vehicles will be available. 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) 613-1900
www.MullenUSA.com

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

Attachment

• Mr. Appliance Owings Mills, MD., is a Franchisee of National Home Service Repair Company, Mr. Appliance

FAQ

What is the significance of Mullen's (MULN) sale to Mr. Appliance for the company?

The sale marks Mullen's first venture into the home service vertical, representing a strategic expansion into a new market segment where transportation costs typically exceed 30% of operating expenses.

How much can businesses save on fuel costs with the Mullen ONE electric van?

The Mullen ONE can reduce fuel expenses by up to 57% compared to traditional internal combustion engine vehicles.

What maintenance cost savings does the Mullen ONE (MULN) offer?

The Mullen ONE offers up to 50% reduction in maintenance costs by eliminating the need for frequent oil changes and costly brake replacements.

What federal tax incentives are available for purchasing a Mullen ONE van?

Purchasers of the Mullen ONE are eligible for a $7,500 federal tax credit.

Which home service company made the first purchase of a Mullen ONE van?

Mr. Appliance of Owings Mills, Maryland, a franchisee of the national home service brand Mr. Appliance, made the first purchase in this vertical.