Mullen Automotive (NASDAQ: MULN), a Southern California-based electric vehicle manufacturer, has taken a significant step forward in its commercial EV business by securing an order for 10 Class 3 EV cab chassis trucks from Associated Coffee, a distributor in the San Francisco Bay Area. This development underscores the increasing adoption of electric vehicles in commercial operations and the potential for substantial environmental and economic impacts in the urban delivery sector.
The order, fulfilled through Mullen’s authorized dealer Papé Group, aligns with Associated Coffee’s commitment to sustainability and reducing its carbon footprint. The Class 3 Mullen THREE trucks are specifically designed for urban last-mile delivery, addressing the growing demand for environmentally friendly transportation solutions in densely populated areas.
Mullen’s commercial EVs, including the Class 3 Mullen THREE, are engineered to meet stringent emissions standards, making them an attractive option for companies looking to comply with increasingly strict environmental regulations. The vehicles offer a dual advantage of environmental sustainability and potential cost savings, with up to $52,500 available in rebates and tax credits for eligible customers.
This order comes at a crucial time for Mullen Automotive, which began commercial vehicle production at its Tunica, Mississippi plant in August 2023. The company has been rapidly expanding its commercial presence, with both the Mullen ONE (a Class 1 EV cargo van) and Mullen THREE (a Class 3 EV cab chassis truck) now California Air Resource Board (CARB) and EPA certified and available for sale in the United States.
The CARB-issued HVIP approval for the Mullen THREE provides an additional incentive, offering up to a $45,000 cash voucher at the time of vehicle purchase. This financial benefit, combined with the potential for reduced operational costs associated with electric vehicles, presents a compelling case for businesses to transition their fleets to EVs.
Mullen has also been strategically expanding its commercial dealer network, which now includes seven dealers covering key markets across the United States. This expanded network is crucial for providing sales and service support to customers like Associated Coffee, ensuring that commercial EV adopters have access to necessary resources and maintenance.
The company’s recent acquisition of Foreign Trade Zone (FTZ) status for its Tunica, Mississippi manufacturing center further enhances its competitive position. FTZ approval offers benefits such as deferment of duties owed and elimination of duties on exported vehicles, potentially reducing costs and improving Mullen’s ability to compete in both domestic and international markets.
As the demand for sustainable transportation solutions continues to grow, particularly in urban areas, Mullen Automotive’s latest order from Associated Coffee serves as a testament to the viability and attractiveness of commercial EVs. This development not only benefits the companies involved but also contributes to broader efforts to reduce carbon emissions and improve air quality in cities.
The success of this order and Mullen’s expanding presence in the commercial EV market could have far-reaching implications for the automotive industry, potentially accelerating the transition to electric vehicles in commercial fleets across various sectors. As more businesses recognize the environmental and economic advantages of EVs, manufacturers like Mullen are well-positioned to capitalize on this growing market demand.
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