Company has committed capital in excess of $250 million
Fleet customer pipeline includes Yale University, Princeton University, UCLA, Enterprise Fleet Services, DB Schenker and Mobile Road Service Solutions, a AAA provider
The Company is also planning to deploy vehicles to Canada with key prospective partners including a major telecom company, which has already tested vehicle telematics with Mullen
Mullen’s Class 1 EV cargo van with solid-state polymer battery pack with significant improvement to range will be fully certified for production and sale in second half of 2025
Company in current talks to acquire EV OEMs to expand product portfolio for commercial and passenger EVs
Mullen to obtain over-the-air (OTA) vehicle technology powered by AI, along with other related IP assets as part of a successful acquisition
BREA, Calif., June 20, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN), an electric vehicle (“EV”) manufacturer, today provides a shareholder update from CEO and Chairman David Michery on various efforts and Company initiatives.
“We continue to make solid progress across our commercial vehicle programs. We are also actively pursuing M&A discussions with other EV companies to increase our vehicle portfolio and market opportunity,” Michery said. “Additionally, we have obtained significant funding commitments of more than $250 million to further our continued progress and future.”
Recent Highlights Include:
- In May 2024, Mullen entered into a new agreement with various investors for a $50 million commitment with an additional option for $50 million subject to certain conditions.
- In May 2024, the Company announced the execution of a committed equity line of credit for $150 million of financing.
- Company has up to $250 million in committed capital subject to certain conditions.
- In June, Mullen received approval for the Mullen THREE, Class 3 truck qualifying for a $15,000 incentive through the State of Massachusetts MOR-EV program. Massachusetts is a CARB approved state with a similar program to California’s Air Resource program which in April approved the Mullen THREE for a $45,000 HVIP cash rebate voucher at time of vehicle purchase.
- In June, Mullen’s subsidiary, Bollinger Motors, received a $13.2 million estimated sales order from Momentum Groups for Bollinger’s B4 all-electric Class 4 truck.
- In June, the Company added its fifth dealer to its retail commercial dealer network with the addition of Massachusetts-based Eco Auto. In May, Ziegler Truck Group and Range Truck Group, National Auto Fleet Group and Pritchard Commercial EV were added to Mullen’s network.
- In May 2024, the Company announced new European Distributor (GAMA) and their first commercial fleet order for 40 Mullen-GOs to food delivery upfitter, Antidoto SA. The initial PO is valued at $440,000 USD. To manage the European expansion effort, Mullen announced the appointment of former European Manheim and Copart executive, Alain Van Munster, as Vice President of Sales for the EMEA.
- In May 2024, Bollinger Motors announced sales of 50 B4 all-electric Class trucks. Deal estimated at $8.2 million.
Battery Technology Update
- Mullen has made significant strides towards the integration of solid-state polymer battery packs into commercial Class 1 vehicles. The Company has identified lead suppliers for development and components and issued initial purchase orders to support this pivotal program.
- Mullen’s Class 1 EV cargo van with solid-state polymer pack with significant improvement to range will be fully certified for production and sale in second half of 2025.
- To date, solid-state battery packs have been integrated into the Mullen ONE cargo van for testing purposes, enhancing its vehicle range to over 200 miles. This marks a significant advancement in the Company’s commitment to delivering efficient and sustainable mobility solutions.
- In conjunction with the solid-state battery vehicle integration, Mullen will introduce a new POWER BOOST battery exchange program. This program will offer our customers the opportunity to upgrade to the solid-state pack, providing enhanced range benefits through a seamless battery trade-in program.
- The Company is in the process of purchasing additional manufacturing equipment assets and technology from a leading battery technology provider to build both low voltage and high voltage LFP.
- Mullen is working with a leading battery technology provider to build prototype sodium ion batteries to install and test in commercial vehicles. Utilization of this technology will reduce the Company’s dependency on foreign made components. Pack completion is expected Q2 2025 with testing and validation to begin thereafter.
- The Company has recently announced the development of a new PowerUP mobile DC fast charging truck to be integrated on the all-electric Mullen THREE, Class 3 cab chassis truck. The new design will provide multiple scaling options to meet various market needs, ranging from 10kW to 1MW with targeted completion in Q4 2024. The new PowerUP features Level 3 DC fast charging, off-grid AC power, and micro-grid connectivity, making it suitable for multiple applications. A significant advantage of the battery powered vehicle is quiet operation with minimal noise pollution, unlike traditional fossil fuel powered generators. This benefit makes it ideal for use in noise-sensitive environments like urban centers, hospitals, parking garages, campuses and even residential areas.
Mullen Class 1 and 3 Commercial Vehicles
Mullen has been actively engaging with potential customers through pilot programs and ride-and-drive events. These events are aimed at allowing potential customers to experience the vehicles firsthand, which is a crucial gateway in influencing buying decisions.
The Company’s current fleet customer pipeline includes Yale University, Princeton University, UCLA, Enterprise Fleet Services, DB Schenker and Mobile Road Service Solutions, a AAA provider.
Recent ride-and-drive activity includes Fleet Forward: Port of LA, Home Delivery World, ACT Expo, Government Fleet Expo, NAFA Institute & Expo and NTEA Work Truck Week.
In additional to its U.S. activities, Mullen is preparing significant pilot programs in Europe and Canada and is actively deploying Class 1 and Class 3 EVs to Europe. The Company is also planning to deploy vehicles to Canada with key prospective partners including a major telecom company, which has already tested vehicle telematics with Mullen. Overall, the Company is actively focused on establishing the brand in new markets.
Foreign Trade Zone, Logistics and Supply Change Management Update
- In May 2024, the Company received approval from the Department of Commerce for Foreign Trade Zone (“FTZ”) status at its Tunica, Mississippi, commercial vehicle manufacturing facility. The addition of the FTZ is projected to provide an estimated $20 million in deferred working capital for FY2024 and FY2025. For international sales, the Company is now 100% exempt from duties and taxes owed on vehicles exported, returning a bottom-line pick-up of up to 27% on vehicle kits and 11% on vehicle batteries for a blended average of 20% on the full duty cost associated with both Class 1 EV cargo vans and Class 3 EV trucks.
- To address constant supply chain cost challenges, Mullen is engaged with a new global logistics supplier to address freight volatility and mitigate current market conditions for international freight shipments.
About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. Recently, CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to a $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network with the addition of Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group and Eco Auto, providing sales and service coverage in key Midwest, West Coast and Pacific Northwest and New England markets. The Company also recently announced Foreign Trade Zone (“FTZ”) status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. FTZ approval provides a number of benefits, including deferment of duties owed and elimination of duties on exported vehicles.
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 if and when the capital commitments made to the Company will materialize; the outcome of the Company’s discussions and negotiations for acquisitions of EV OEMS; whether the OTA technology acquired by the Company will prove successful; the duration and availability of state and federal EV incentives; whether Bollinger Motors will be successful in fulfilling sales orders for its vehicles; whether the Company will achieve its goals of deploying its vehicles in Europe, Canada and other international markets; whether the Company will be successful with its battery technology and extended range initiatives or meet the anticipated battery development, production, integration and sales timelines; what the resultant financial and other impacts of the Foreign Trade Zone status at the Company’s Tunica, Mississippi, facility will prove to be; and whether the Company will be successful in concluding sales contracts or selling vehicles to its referenced fleet customer pipeline. 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:
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Los Angeles, California
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