Mullen Automotive Inc., an electric vehicle manufacturer, has successfully negotiated a settlement agreement with GEM Yield Bahamas Limited and GEM Global Yield LLC SCS, effectively concluding a protracted four-year legal conflict. The agreement provides GEM with a 55-day due diligence period to evaluate the transfer of Mullen's Mishawaka, Indiana assets, which will serve as full satisfaction of the existing judgment.
This settlement represents a significant milestone for Mullen, allowing the company to focus on its strategic manufacturing expansion in Tunica, Mississippi. The company has been actively developing its electric vehicle production capabilities, with commercial vehicle production commencing in August 2023 and receiving critical certifications from the California Air Resource Board and Environmental Protection Agency.
The resolution comes at a pivotal moment for Mullen, which has been expanding its commercial electric vehicle lineup. The company currently offers the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck. Both vehicles are now certified and available for sale in the United States, with potential incentives including up to $7,500 in federal EV tax credits and a $45,000 cash voucher through the CARB HVIP program.
Strategically, Mullen has been strengthening its market position by expanding its commercial dealer network to seven dealers, covering key regions across the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic markets. The company's recent Foreign Trade Zone status approval for its Tunica manufacturing center further enhances its operational flexibility, offering benefits such as duty deferment and elimination of export duties.
The settlement with GEM provides Mullen an opportunity to streamline its asset portfolio and concentrate on its core manufacturing and product development objectives. By resolving this long-standing legal dispute, the company can redirect its resources and attention toward scaling its electric vehicle production and meeting growing market demand for commercial electric vehicles.
