Mullen Automotive (NASDAQ: MULN), a Southern California-based electric vehicle (EV) manufacturer, has announced a substantial financial boost to accelerate the production and sales of its subsidiary Bollinger Motors’ all-electric Class 4 B4 truck. Robert Bollinger, the founder of Bollinger Motors, has provided $10 million in non-dilutive debt financing to support this initiative.
The funding comes at a crucial time for Mullen Automotive as it aims to ramp up its EV production capabilities. The B4 trucks are currently being assembled by Roush Industries in Michigan, with over 70% of the components sourced from U.S. manufacturers. This high percentage of domestic content underscores Mullen’s commitment to supporting American manufacturing and reducing reliance on foreign supply chains.
David Michery, CEO of Mullen Automotive, expressed his appreciation for Robert Bollinger’s continued dedication to building the Bollinger brand. The company plans to provide more detailed information about the financing arrangement in an upcoming Form 8-K filing with the Securities and Exchange Commission (SEC).
This financial injection is expected to have a significant impact on Mullen’s production capabilities and market presence. The company has been making strides in the EV sector, with two U.S.-based vehicle plants located in Tunica, Mississippi, and Mishawaka, Indiana. The Tunica facility, spanning 120,000 square feet, began commercial vehicle production in August 2023, while the Mishawaka plant boasts an impressive 650,000 square feet of manufacturing space.
Mullen’s progress in the EV market has been marked by several recent achievements. In September 2023, the company received IRS approval for federal EV tax credits on its commercial vehicles, earning a Qualified Manufacturer designation that allows eligible customers to benefit from up to $7,500 in tax credits per vehicle. Additionally, as of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, have received California Air Resource Board (CARB) and EPA certifications, making them available for sale in the United States.
The CARB-issued HVIP approval for the Mullen THREE provides an additional incentive for potential buyers, offering up to a $45,000 cash voucher at the time of vehicle purchase. This approval is expected to boost sales and adoption of Mullen’s electric trucks in the commercial sector.
Mullen has also been expanding its commercial dealer network, recently adding Papé Kenworth as its seventh dealer. Other dealers in the network include Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group. This expanded network provides Mullen with sales and service coverage in key markets across the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions.
Furthermore, Mullen’s Tunica, Mississippi, commercial vehicle manufacturing center has received Foreign Trade Zone (FTZ) status approval. This designation offers several benefits, including the deferment of duties owed and the elimination of duties on exported vehicles, potentially improving the company’s competitive position in the global market.
As the electric vehicle industry continues to grow and evolve, Mullen Automotive’s latest financial backing and production developments position the company to capitalize on the increasing demand for commercial EVs. The $10 million investment from Robert Bollinger not only demonstrates confidence in the B4 truck’s potential but also reinforces Mullen’s commitment to advancing sustainable transportation solutions in the United States.
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