Mullen Capitalizes on First-Mover Advantage in Class 1 EV Cargo Vans and Class 3 EV Trucks
- Mullen Automotive Inc. has successfully invoiced $17,318,000.00 for its Class 1 and Class 3 commercial EVs, showing a positive gross margin on the vehicles.
- The company's first-mover advantage in the U.S. market has led to strong production and deliveries of its commercial EVs, positioning it well in the market.
- CEO David Michery emphasizes the positive gross profit margin per vehicle, highlighting the growth in the commercial and fleet segments.
- Mullen's Class 1 and Class 3 commercial vehicles have received EPA and CARB certifications, making them available for sale in every state throughout the U.S.
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The announcement by Mullen Automotive Inc. regarding its invoicing for commercial vehicles marks a significant milestone for the company and the electric vehicle (EV) industry. The reported positive gross margin on vehicles is a strong indicator of the company's potential to sustain its operations and grow. The EV market, particularly in the commercial and fleet segments, is expanding as businesses seek to lower emissions and operating costs. Mullen's first-to-market status with Class 1 EV cargo vans and Class 3 EV trucks could give it a competitive edge, as early market entry is often crucial for establishing brand recognition and customer loyalty.
However, the long-term success of Mullen will depend on various factors such as production scalability, continued innovation and the ability to maintain a positive gross margin in the face of increasing competition. The market for EVs is becoming crowded, with traditional automakers and new entrants alike vying for market share. Mullen's early positive performance must be viewed in the context of broader industry trends, including the potential for market saturation and price competition.
The financial health of Mullen Automotive is of paramount interest to stakeholders, particularly investors. The disclosed invoicing figure of $17,318,000.00 suggests robust initial sales, which is encouraging for a company in the capital-intensive automotive industry. Positive gross margins at this stage may reflect well on the company's cost management and pricing strategy. However, it is imperative to scrutinize the sustainability of these margins as production scales up and external factors, such as raw material costs and supply chain issues, come into play.
Furthermore, certifications from the EPA and CARB not only enhance the company's regulatory standing but also expand the potential market for Mullen's vehicles across all U.S. states. This regulatory compliance could facilitate smoother entry into new markets and potentially boost investor confidence. Nevertheless, it is crucial to analyze the company's future financial projections, capital expenditure requirements and R&D investments to fully understand its growth trajectory and the implications for stock performance.
Mullen Automotive's achievement in obtaining EPA and CARB certifications for its Class 1 and Class 3 EVs is a testament to its commitment to meeting stringent environmental and safety standards. These credentials are essential for commercial vehicles operating within urban environments, where regulations are often more rigorous due to concerns over air quality and noise pollution. The focus on urban last-mile delivery vehicles is strategic, as this market segment is expected to grow with the rise of e-commerce and the need for efficient, sustainable delivery solutions.
It is important to note that the Class 1 and Class 3 vehicle segments serve different purposes, with Class 1 vehicles typically used for lighter, more nimble urban deliveries, while Class 3 trucks are designed for heavier loads and may compete directly with larger diesel-powered vehicles. The transition to EVs in these classes will be influenced by factors such as charging infrastructure availability, vehicle range and total cost of ownership. Mullen's early entry into this space could position it well if it continues to innovate and address these market needs effectively.
Company has invoiced
Mullen Commercial is first-to-market with Class 1 EV cargo vans and Class 3 EV trucks; positive gross margin on vehicles invoiced
BREA, Calif., Feb. 01, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces today the Company continues to capitalize on its first-mover advantage in the U.S. market with production and deliveries of its Class 1 and Class 3 commercial EVs.
“While many of the OEMs and new EV companies have launched their EVs with significant losses, Mullen is out-of-the-gate with a positive gross profit margin per vehicle. EV growth has slowed in the retail segment but continues to increase across the commercial and fleet segments, where we now have a strong vehicle lineup in the market,” said David Michery, CEO and chairman of Mullen Automotive.
Mullen began Class 3 vehicle production in August 2023 and first vehicle deliveries in September 2023. Mullen Class 1 production began in November 2023 with first vehicle deliveries in December 2023.
The all-electric Mullen ONE Class 1 EV cargo van and Mullen THREE Class 3 low cab forward EV truck are both purpose-built to meet the demands of urban last-mile delivery. Mullen recently announced that its Class 1 and Class 3 commercial vehicles are now both in receipt of Environmental Protection Agency (“EPA”) and CARB certifications. Both vehicles are also in full compliance with U.S. Federal Motor Vehicle Safety Standards. Having received credentials from CARB and the EPA, Mullen can now sell both the Mullen ONE and THREE in every state throughout the U.S.
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. On Sept. 7, 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and on Dec. 1, 2022, 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 demand, sales volume and timing of future production and deliveries of the Mullen Class 1 and Class 3 vehicles. Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s 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 Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) 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 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
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