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Mullen Automotive expands dealer network with Eco Auto

EditorNatashya Angelica
Published 2024-06-10, 02:02 p/m
MULN
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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, announced today the addition of Eco Auto, a commercial EV dealership based north of Boston, to its national franchise network. The new partnership is aimed at enhancing the distribution and service of Mullen's commercial EVs, particularly focusing on the New England regional market.

Eco Auto's initial order from Mullen includes 10 Mullen ONE Class 1 EV cargo vans and 3 Mullen THREE Class 3 EV cab forward trucks. This move signifies Mullen's continued efforts to expand its commercial EV sales network across the United States, marking it as the fifth dealer addition in recent months.

The Mullen ONE and Mullen THREE are purpose-built to meet urban last-mile delivery demands and are fully compliant with U.S. Federal Motor Vehicle Safety Standards, as well as having EPA and CARB certifications. Notably, the Mullen THREE has been approved for the California HVIP program, providing a substantial cash incentive of $45,000, which, when combined with the federal tax credit, significantly reduces the vehicle's net cost.

Eco Auto, headquartered in Tewksbury, Massachusetts, operates with the mission of making EVs accessible to a broader audience, including municipalities and businesses focused on sustainability. The dealership offers a complete EV experience, from vehicle sales to advanced charging solutions and expert service in state-of-the-art facilities.

The addition of Eco Auto to Mullen's dealer network underscores the company's strategy to fortify its presence in the commercial EV market across the country. Mullen's commercial EV lineup, including the Mullen ONE and Mullen THREE, is available for sale following the commencement of commercial vehicle production in Tunica, Mississippi, in August 2023 and the subsequent IRS approval for federal EV tax credits for qualified customers.

David Michery, CEO and chairman of Mullen Automotive, expressed enthusiasm about the partnership, highlighting Eco Auto's strong dedication to EVs and the importance of the New England area as a hub for commercial fleet companies.

The information is based on a press release statement from Mullen Automotive, Inc.

In other recent news, Mullen Automotive has been making notable strides in the electric vehicle (EV) market. The firm recently entered into a partnership with Eco Auto, a new commercial EV dealership based in Massachusetts, to manage national fleet sales for Mullen's range of commercial electric vehicles. The company has also expanded its presence in the European EV market with the appointment of Alain Van Munster as Vice President of Sales for Europe, Middle East, and Africa (EMEA).

Mullen Automotive has secured significant orders, including 93 EVs for GAMA in Serbia and Antidoto SA in Switzerland, and a $440,000 order for 40 Mullen-GO urban delivery vehicles from Antidoto SA, marking its entrance into the European market. The firm also announced the launch of PowerUP, a zero-emission mobile EV charger, marking a shift from their previous gasoline-powered platform.

Mullen's expansion efforts have extended to the Balkans Region, partnering with distributor GAMA to offer its full lineup of commercial EVs. The company has also reported an $8.25 million deal with EnviroCharge, involving the sale of 50 Bollinger B4 all-electric commercial trucks for a mobile charging solution. These recent developments underscore Mullen's commitment to sustainability and its strategic approach to expanding its global footprint in the EV market.

InvestingPro Insights

As Mullen Automotive, Inc. (NASDAQ: MULN) continues to grow its commercial electric vehicle (EV) footprint with strategic partnerships and dealership expansions, the financial landscape of the company provides an intriguing backdrop. According to InvestingPro data, Mullen's Market Cap stands at a modest $32.64 million, reflecting the size and current market valuation of this emerging EV manufacturer.

In terms of valuation metrics, Mullen is trading at a low Price / Book multiple of 0.34 as of the last twelve months ending Q2 2024. This could indicate that the company's stock is potentially undervalued relative to its book value, which might appeal to value investors looking for opportunities in the EV space.

Still, it is important to note that Mullen has been experiencing significant cash burn, with a Gross Profit Margin of -501.56% during the same period. This highlights the challenges faced in scaling up production and sales while managing costs effectively.

InvestingPro Tips suggest that management has been aggressively buying back shares, which could be a sign of confidence in the company's future prospects. Additionally, Mullen holds more cash than debt on its balance sheet, providing some financial stability as it navigates the competitive EV industry.

For readers interested in a deeper dive into Mullen's financial health and market potential, there are additional InvestingPro Tips available on the platform. Users can explore these insights by visiting https://www.investing.com/pro/MULN and take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 17 additional InvestingPro Tips to uncover, investors can gain a comprehensive understanding of Mullen Automotive's investment profile.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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