Mullen Automotive (NASDAQ: MULN) stock inclined over 3% during intraday trading Wednesday after the company announced the shipment of its first commercial EVs under a $210 million deal with Volt Mobility.
Mullen Automotive (NASDAQ: MULN) has started shipping its commercial EV cargo vans and trucks to Volt Mobility. The first shipment, part of a $210 million contract for 3,000 Class 1 and Class 3 EVs, was dispatched on September 2, 2024. Deliveries are scheduled over 16 months.
Mullen will begin recognizing revenue from the deal in the first fiscal quarter starting October 1, 2024.
Volt made a $3 million deposit on August 26, 2024, leading to the agreement. Volt Mobility, which provides EVs to corporate clients in the Middle East and the Gulf States, serves major delivery firms like UPS, DHL, and FedEx (NYSE: FDX).
The Volt’s order includes the Mullen Class 1 EV cargo van, the Mullen Class 3 EV cab chassis truck, and the Bollinger B4 and B5 trucks from Mullen’s subsidiary, Bollinger Motors.
The EVs are being assembled at Mullen’s facility in Mississippi, which can produce up to 20,000 Class 1 vehicles and 6,000 Class 3 vehicles annually.
David Michery, Mullen’s CEO, called the shipment a major step in expanding the company’s global commercial EV business. Mullen’s vehicles meet U.S. safety standards and have certifications from the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). Production of the Bollinger B4 truck will begin on September 16, 2024, with deliveries set to follow in October.
Founded in 2020, Volt Mobility has quickly become a key player in the commercial EV leasing sector in the Middle East, offering a range of light to heavy-duty electric vehicles.
Meanwhile, Mullen Automotive operates two U.S. plants and recently grew its commercial dealer network. Mullen’s vehicles are also eligible for federal EV tax credits and CARB’s HVIP program, offering substantial incentives to customers.
Mullen Automotive (NASDAQ: MULN) Stock Reaction
MULN stock surged 3.51% on Wednesday, closing at $0.2185, marking a 27.26% decrease for the week. The trading volume was 138,104,323 shares, significantly higher than the average daily volume of 23.93 million.
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