Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer, has announced a substantial new vehicle order valued at $3.2 million from Papé Trucks, its seventh franchise dealer partner. This development signifies a notable expansion in Mullen’s commercial EV market reach and underscores the growing demand for electric commercial vehicles in the United States.
The order from Papé Trucks, which operates 30 commercial sales and service locations across the Western U.S., comprises 43 Class 3 EV trucks and 7 Class 1 EV cargo vans. Additionally, the purchase includes Class 1 and Class 3 parts supply to ensure efficient warranty service and repair work. Mullen has committed to commencing vehicle deliveries immediately, highlighting the company’s readiness to meet market demands.
This partnership with Papé Trucks is particularly significant due to the dealer’s strong reputation for exceptional customer service and its extensive network across the Western United States. The collaboration is expected to play a crucial role in introducing Mullen’s commercial EVs to a broader market, potentially accelerating the adoption of electric vehicles in the commercial sector.
David Michery, CEO and chairman of Mullen Automotive, emphasized the importance of this deal, stating, ‘Papé is a well-respected commercial dealer with locations in key West Coast markets. Papé’s expertise and reach will play a crucial role in establishing new Mullen customers across the U.S.’
The timing of this order aligns with Mullen’s recent achievements in the EV sector. In August 2023, the company began commercial vehicle production at its Tunica, Mississippi plant. Following this, in September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles, offering eligible customers up to $7,500 per vehicle. These developments, coupled with the new order, indicate Mullen’s growing position in the competitive EV market.
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, making them available for sale in the U.S. The CARB-issued HVIP approval on the Mullen THREE provides an additional incentive, offering up to a $45,000 cash voucher at the time of vehicle purchase.
Mullen’s expansion efforts are further evidenced by its growing commercial dealer network, which now includes seven dealers with the addition of Papé Kenworth. This network expansion, covering key markets in the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions, positions Mullen to effectively meet the increasing demand for commercial EVs across diverse geographical areas.
The company’s strategic moves extend beyond production and sales. Mullen has also announced Foreign Trade Zone (FTZ) status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. This approval provides several benefits, including deferment of duties owed and elimination of duties on exported vehicles, potentially enhancing Mullen’s competitive edge in the global market.
As the automotive industry continues its shift towards electrification, Mullen Automotive’s latest order and strategic partnerships demonstrate the company’s commitment to leading in the commercial EV sector. The successful fulfillment of this order could set the stage for further growth and establish Mullen as a key player in the evolving landscape of electric commercial vehicles.
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