BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an electric vehicle manufacturer, announced today the partnership with National Auto Fleet Group (NAFG), a commercial dealer based in California. NAFG will distribute Mullen's electric commercial vehicles, including the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck.
NAFG, established in 1980, specializes in government fleet sales and will utilize its awarded Sourcewell contracts (#091521-NAF and #060920-NAF) to streamline the purchasing process for government agencies. Sourcewell, a government agency, facilitates ready-to-use contracts for its members, bypassing the need for individual bidding procedures. The collaboration aims to offer efficient, zero-emission fleet options for municipal and government entities, with NAFG providing support through Sourcewell.
The Mullen THREE has received approval from the California Air Resource Board (CARB) under the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), enabling an up to $45,000 cash voucher at the point of sale. This incentive, combined with a federal tax credit of $7,500, substantially reduces the effective cost of the vehicle.
Both the Mullen ONE and Mullen THREE are in full compliance with U.S. Federal Motor Vehicle Safety Standards, as well as EPA and CARB certifications, making them suitable for public fleets. Mullen's electric vehicles are assembled in the United States, aligning with the company's commitment to supporting American manufacturing.
David Michery, CEO of Mullen Automotive, expressed that the partnership with NAFG and their experience in serving government agencies is pivotal for introducing their commercial EVs to public fleets nationwide.
This announcement is based on a press release statement from Mullen Automotive, Inc. and does not constitute an endorsement of Mullen's claims. It is intended to provide information regarding the new partnership and offerings available to government agencies through NAFG.
InvestingPro Insights
In light of Mullen Automotive's recent partnership with National Auto Fleet Group (NAFG), investors may find the current financial metrics and management activities of the company to be of particular interest. Mullen Automotive, with a market capitalization of 27.29 million USD, is positioning itself as a player in the electric vehicle space. While the company is trading at a low Price / Book multiple of 0.13, reflecting potentially undervalued assets relative to its share price, it is also facing significant financial challenges. The last twelve months as of Q1 2024 have seen the company with a gross profit margin of -458.51%, indicating that it is currently not generating profits from its operations.
One of the notable InvestingPro Tips highlights that Mullen's management has been aggressively buying back shares, which could signal confidence in the company's future prospects. Additionally, the company holds more cash than debt on its balance sheet, which is a positive sign of financial stability, especially for investors looking for companies with a solid liquidity position. However, it's important to note that Mullen is quickly burning through cash, which could be a concern for long-term sustainability.
For investors considering Mullen Automotive as a potential addition to their portfolio, there are 17 additional InvestingPro Tips available, providing a deeper dive into the company's financial health and market position. These tips can be accessed through the InvestingPro platform, offering valuable insights for making informed investment decisions.
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