Mullen Automotive Begins Shipping EVs Under Major Contract
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Mullen Automotive Ships Initial Commercial EVs
In an exciting development from Brea, California, Mullen Automotive, Inc. (NASDAQ: MULN), a manufacturer of electric vehicles, has made a splash in the market by initiating the shipping of its first vehicles under a notable $210 million purchase contract with Volt Mobility. Volt Mobility, a company based in the United Arab Emirates, is set to enhance its fleet with these commercial electric vehicles (EVs).
Details of the Purchase Agreement
The purchase agreement outlines Volt's plan to acquire 3,000 Mullen Class 1 and Class 3 EV cargo vans and trucks over the next 16 months. Mullen has already fulfilled part of this commitment, with initial shipments taking place recently. This marks the start of the multi-phase agreement, with expectations to deliver around 300 vehicles in the calendar year.
Financial Aspects of the Deal
The contract kicks off with a $3 million deposit from Volt, paving the way for further payments as the vehicles are dispatched. This agreement is crucial for Mullen's financial trajectory, as the company is poised to recognize revenue in its upcoming fiscal quarter beginning this fall.
Volt Mobility's Role in the UAE
Volt Mobility aims to lease these vehicles to various corporate clients across the Gulf region, with well-known companies like UPS, DHL, and FedEx already among its clientele. This strategic move not only showcases Mullen's innovative vehicle technology but also supports Volt's mission to provide efficient logistics solutions in bustling commercial sectors.
Production Capabilities and Plans
Production of these vehicles takes place at Mullen’s facility in Tunica, Mississippi. This state-of-the-art production center is engineered to manufacture up to 20,000 Class 1 and 6,000 Class 3 vehicles every year, optimizing the operational efficiency needed to meet growing demands for commercial electric vehicles.
Mullen's Growth and Future Prospects
As Mullen Automotive navigates this significant partnership, CEO David Michery expressed enthusiasm about the venture, highlighting its importance in the company's global expansion strategy into sustainable transportation solutions. The shipping of these vehicles heralds another important milestone in Mullen’s growth as a leader in the EV market.
Broadening the Commercial EV Lineup
Mullen's diverse offer includes the Mullen ONE Class 1 EV cargo van and the Mullen THREE Class 3 EV cab chassis truck, along with models from its subsidiary, Bollinger Motors. Each vehicle is specially designed to adhere to regulatory standards, ensuring maximum efficiency for urban last-mile delivery needs.
Conclusion
This strategic partnership sets the stage for Mullen to solidify its presence in the commercial EV space. With the technological advancements and production capabilities in place, Mullen Automotive continues its journey to redefine electrical mobility in various sectors, making significant strides toward a greener future.
Frequently Asked Questions
What is the significance of Mullen's contract with Volt Mobility?
The contract exemplifies Mullen's commitment to expanding its footprint in the commercial EV sector while providing vital support to Volt Mobility in meeting its fleet needs.
How many vehicles will be supplied under this contract?
Volt Mobility will purchase a total of 3,000 Class 1 and Class 3 cargo vans and trucks over a period of 16 months.
Where does Mullen manufacture its EVs?
Mullen's vehicles are produced at its facility in Tunica, Mississippi, which has a capacity of producing 20,000 Class 1 and 6,000 Class 3 vehicles annually.
Who are some of Volt's clients?
Notable clients of Volt Mobility include major logistics companies such as UPS, DHL, and FedEx.
What types of vehicles does Mullen offer?
Mullen offers a range of electric vehicles including the Mullen ONE EV cargo van and the Mullen THREE EV truck, tailored for commercial use.
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