Mullen Automotive (NASDAQ: MULN), a Southern California-based electric vehicle (EV) manufacturer, has reported significant progress in both sales and cost management. The company announced sales of 100 Class 1 and Class 3 electric cargo vans and trucks since September 30, 2024, generating $5.5 million in revenue. This development marks a notable milestone for Mullen in the competitive EV market.
In addition to the sales achievement, Mullen has demonstrated substantial improvements in its financial efficiency. The company has successfully reduced its monthly burn rate from $16.8 million in August to $5.3 million in October and November. This dramatic decrease in operational costs could potentially lead to improved profitability and sustainability for the company.
CEO David Michery emphasized the growing demand for sustainable transportation solutions, highlighting ongoing discussions with government agencies and large fleets. This interest from potential high-volume customers suggests a promising outlook for Mullen’s commercial EV offerings.
Mullen’s product lineup, including the Mullen ONE and Mullen THREE commercial EVs, is designed to meet strict U.S. emissions standards. These vehicles also qualify for various state and federal incentives, with potential rebates of up to $45,000. Such incentives could significantly boost the attractiveness of Mullen’s products to cost-conscious fleet operators and businesses looking to transition to electric vehicles.
The company’s manufacturing capabilities have expanded with two United States-based vehicle plants. The Tunica, Mississippi facility spans 120,000 square feet, while the Mishawaka, Indiana plant covers an impressive 650,000 square feet. Mullen began commercial vehicle production in Tunica in August 2023, marking a crucial step in its growth strategy.
In a significant development for potential customers, Mullen received IRS approval for federal EV tax credits on its commercial vehicles in September 2023. The Qualified Manufacturer designation offers eligible customers up to $7,500 per vehicle, further enhancing the value proposition of Mullen’s EVs.
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 certification. This approval allows for the sale of these vehicles in the United States, opening up significant market opportunities for the company.
Mullen has also expanded its commercial dealer network to seven dealers, including the recent addition of Papé Kenworth. This growing network, which includes Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, provides sales and service coverage in key markets across the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions.
The company’s Tunica, Mississippi commercial vehicle manufacturing center has received Foreign Trade Zone (FTZ) status approval. This designation offers several benefits, including deferment of duties owed and elimination of duties on exported vehicles, potentially improving Mullen’s competitive position in both domestic and international markets.
As the automotive industry continues its shift towards electrification, Mullen Automotive’s recent achievements in sales, cost reduction, and market expansion position the company as a noteworthy player in the commercial EV sector. The combination of growing sales, expanding production capabilities, and a strengthening dealer network suggests that Mullen is gaining traction in the evolving landscape of sustainable transportation.
This news story relied on a press release distributed by InvestorBrandNetwork (IBN). Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Mullen Automotive Reports $5.5 Million in EV Sales and Significant Cost Reductions.