Mullen Automotive Provides Timeline Update on US Customs and Border Protection Ruling for Class 1 EV Cargo Vans
- None.
- None.
The pending determination by the U.S. Customs and Border Protection (CBP) regarding Mullen Automotive's Class 1 EV cargo vans has significant market implications. If the ruling is favorable, Mullen would gain immediate access to a substantial customer base within the U.S. government. This could potentially lead to a surge in demand for their EV cargo vans, providing a new revenue stream and possibly improving the company's competitive positioning in the EV market.
Government contracts are known for their large scale and long-term stability, which could translate into predictable and recurring revenue for Mullen. This would be a substantial development for a company in the emerging EV space, where capital and scale are critical. The prospect of such contracts could also affect investor sentiment positively, potentially leading to an uptick in stock valuation.
A favorable CBP ruling for Mullen Automotive could have a tangible impact on the company's financials. Access to government contracts could lead to increased production volume, which in turn could drive down unit costs through economies of scale. This cost advantage could improve margins and profitability in the long term.
However, investors should be cautious and consider the company's current financial health, production capacity and ability to scale operations to meet potential government demand. Additionally, the market will be looking at how Mullen's supply chain and manufacturing capabilities stack up against established competitors who may already have a foothold in government contracts.
The legal intricacies of CBP rulings involve compliance with numerous trade and customs regulations. A favorable ruling would not only indicate that Mullen's Class 1 EV cargo vans meet these stringent requirements but also set a precedent for future product classifications and rulings. This could streamline Mullen's ability to bring new products to market, especially in the highly regulated government sector.
Moreover, the legal certainty provided by a positive ruling could reduce the regulatory risk profile of the company. It is important for investors to understand that while the ruling is pending, there remains an element of uncertainty which can be a risk factor for the company's stock performance.
CBP informed counsel on Feb. 20, 2024, that a final determination on the ruling request is now expected within one to two months
BREA, Calif., Feb. 21, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, today announces an update on the U.S. Customs and Border Protection (“CBP”) application for Class 1 EV cargo vans. On Feb. 20, 2024, CBP informed counsel that a final determination on the ruling request is now expected within one to two months.
- CBP ruling requests are typically processed on a first-in, first-out basis
- CBP ruling requests are typically decided between 45 to 90 days, but may exceed this aspirational timeframe depending on the agency’s caseload
On Nov. 24, 2023, Mullen and Rapid Response Defense Systems (“RRDS”) filed responses for final ruling and compliance by the U.S. Customs and Border Protection (“CBP”) application for Mullen’s Class 1 EV cargo van. If Mullen receives a favorable final ruling, the Company will be immediately eligible to sell Class 1 EV cargo vans to all branches of U.S. government.
About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of electric vehicles (“EVs”) that will be manufactured in its two United States-based assembly plants. Mullen’s EV development portfolio includes the Mullen FIVE EV Crossover, Mullen-GO Commercial Urban Delivery EV, Mullen Commercial Class 1-3 EVs and Bollinger Motors, which features both the B1 and B2 electric SUV trucks and Class 4-6 commercial offerings. In 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and Mullen closed on the acquisition of Electric Last Mile Solutions’ (“ELMS”) assets, including all IP and a 650,000-square-foot plant in Mishawaka, Indiana.
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 the timing of a response from CBP and the outcome of Mullen and Rapid Response Defense Systems application. 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
FAQ
When is the final determination on the ruling request expected?
What did Mullen Automotive Inc. announce regarding the U.S. Customs and Border Protection application?
What happens if Mullen receives a favorable final ruling?
