Mullen Automotive Receives Order for 10 Class 3 EV Trucks from Bay Area Distributor

Mullen Automotive (NASDAQ: MULN), a Southern California-based electric vehicle manufacturer, has taken a significant step forward in the commercial EV market with a new order for its Class 3 electric trucks. Associated Coffee, a distributor in the San Francisco Bay Area, has placed an order for 10 Class 3 EV cab chassis trucks, to be fulfilled through Mullen's authorized dealer, Papé Group.

This order represents a notable shift towards sustainable transportation in the distribution sector, particularly for last-mile delivery operations in urban areas. Associated Coffee's decision aligns with a growing trend among businesses to reduce their carbon footprint and improve operational efficiency through the adoption of electric vehicles.

Mullen's Class 3 EV, known as the Mullen THREE, is specifically designed for urban last-mile delivery, addressing the increasing demand for environmentally friendly logistics solutions in densely populated areas. The vehicle not only meets stringent emissions standards but also offers significant financial incentives for buyers. Purchasers can benefit from up to $52,500 in rebates and tax credits, making the transition to electric fleets more economically viable for businesses.

The implications of this order extend beyond a single transaction. It demonstrates the practical application of electric vehicles in commercial settings and could serve as a catalyst for wider adoption across various industries. As more companies prioritize sustainability in their operations, the demand for electric commercial vehicles is likely to increase, potentially reshaping the landscape of urban logistics and delivery services.

Mullen Automotive's position in this evolving market is strengthened by its recent developments. The company began commercial vehicle production in Tunica, Mississippi in August 2023 and received IRS approval for federal EV tax credits on its commercial vehicles in September of the same year. This Qualified Manufacturer designation offers eligible customers up to $7,500 per vehicle, further incentivizing the shift to electric fleets.

Both the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, the Class 3 EV cab chassis truck, have received California Air Resource Board (CARB) and EPA certification, making them available for sale across the United States. The CARB-issued HVIP approval on the Mullen THREE provides an additional cash voucher of up to $45,000 at the time of vehicle purchase, enhancing its appeal to potential buyers.

Mullen has also expanded its commercial dealer network to seven dealers, including the recent addition of Papé Kenworth. This expansion provides sales and service coverage in key markets across the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions, facilitating easier access to Mullen's electric vehicles for businesses nationwide.

The company's strategic positioning is further bolstered by its Foreign Trade Zone (FTZ) status approval for its Tunica, Mississippi commercial vehicle manufacturing center. This status provides benefits such as deferment of duties owed and elimination of duties on exported vehicles, potentially improving Mullen's competitiveness in both domestic and international markets.

As the transportation sector continues to evolve in response to environmental concerns and regulatory pressures, orders like the one from Associated Coffee serve as important indicators of market direction. The success of Mullen's electric commercial vehicles could influence other manufacturers and potentially accelerate the transition to sustainable transportation solutions across various industries.