BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an emerging manufacturer of electric vehicles (EVs), has announced that its 2025 Mullen THREE, a Class 3 all-electric low cab forward chassis truck, received certification from the California Air Resources Board (CARB). This certification is crucial as it allows the company's vehicles to participate in state EV incentive programs and complies with the recent Advanced Clean Fleets (ACF) regulation.
The ACF regulation mandates that half of the vehicle purchases by state and local government fleets must be zero-emission by this year, escalating to 100% by 2027. The Mullen THREE's eligibility for such programs could significantly lower the cost for fleet operators, with potential rebates and tax credits reducing the vehicle's net price substantially.
Previously, Mullen obtained the 2024 Model Year CARB certification for the same model in January 2024. The company's vehicles are now approved for delivery and may benefit from various incentives aimed at accelerating the transition to electric commercial fleets.
Mullen Automotive operates two vehicle plants in the United States and started commercial vehicle production in August 2023. The company's EVs, including the Mullen ONE and Mullen THREE, are CARB and EPA certified and available for sale in the U.S.
The recent CARB certification highlights the company's compliance with stringent emissions standards set by California and 14 other states, as well as the District of Columbia, that follow the Clean Air Act's Section 177. With this approval, Mullen's EV trucks could be more attractive to fleet operators looking to meet regulatory requirements and reduce emissions.
This information is based on a press release statement issued by Mullen Automotive.
InvestingPro Insights
As Mullen Automotive (NASDAQ: MULN) secures crucial certifications that could pave the way for increased adoption of its electric vehicle models, the company's financials and stock performance are of keen interest to investors. According to InvestingPro data, Mullen Automotive holds a market capitalization of approximately $24.7 million USD. Despite the potential market opportunities, the company's Price / Book ratio, as of the last twelve months leading up to Q1 2024, stands at a low 0.12, which may indicate that the stock is trading at a discount relative to the company's book value.
The recent one-week price total return shows a significant return of 29.55%, reflecting a potential investor response to positive news or developments within the company. However, it is crucial to note that the company has been rapidly burning through cash, with a gross profit margin of -458.51% over the same period, suggesting that the cost of goods sold far exceeds the revenue generated from those sales. This is underscored by the company's operating income margin of -76209.66%, indicating substantial operating losses.
For investors looking for a deeper dive into Mullen Automotive's financial health and stock performance, there are additional InvestingPro Tips available. These tips include insights on the company's cash position, profitability, and stock volatility. For example, Mullen Automotive holds more cash than debt on its balance sheet, which could provide some financial flexibility. On the other hand, the company does not pay dividends to shareholders, which may be a consideration for income-focused investors.
To access a comprehensive list of InvestingPro Tips related to Mullen Automotive, including the 17 total tips available, visit https://www.investing.com/pro/MULN. For those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off.
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