Mullen sells EV truck to Princeton University for campus operations

BREA, Calif. - Mullen Automotive, Inc. (NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, has announced the sale of its Mullen THREE, a Class 3 EV box truck, to Princeton University's facilities operations unit. The vehicle is part of the university's initiative to reduce greenhouse gas emissions and achieve zero emissions for on-campus service vehicles.

Princeton's facilities operations, which manage a fleet of over 350 vehicles, have chosen the Mullen THREE for its zero-emission operation and versatility. The Mullen THREE features a 125-mile range and is designed to meet urban delivery demands. It is also eligible for up to $60,000 in incentives through state programs in Massachusetts and California.

David Michery, CEO and chairman of Mullen Automotive, expressed pride in supporting Princeton's sustainability efforts, marking a significant step for Mullen in the higher education sector. The Mullen THREE and Mullen ONE, a Class 1 EV cargo van, meet U.S. Federal Motor Vehicle Safety Standards and are certified by the Environmental Protection Agency and the California Air Resources Board.

Mullen's production of commercial vehicles began in Tunica, Mississippi, in August 2023, with additional IRS-approved federal EV tax credits for eligible customers. The company's dealer network has expanded to include Pritchard EV and others, providing sales and service across various U.S. regions.

This sale to Princeton University reflects Mullen's growing presence in the EV market and its commitment to contributing to environmental sustainability efforts. The information in this article is based on a press release statement.

In other recent news, Mullen Automotive has reported a series of significant developments in its operations. The company has completed a delivery of its Mullen ONE, Class 1 electric cargo vans to the University of Virginia, marking the continuation of their relationship. Mullen Automotive has also expanded its dealership network through its Boston-area dealer, Eco Auto, aiming to capitalize on the increasing demand for commercial electric vehicles. The company appointed John Taylor as the President of the Commercial EV division, following his significant contributions, including the successful launch of Mullen's commercial EV lines, Mullen ONE and Mullen THREE.

In financial updates, Mullen Automotive expects to report total assets of approximately $191.4 million as of June 30, 2024, and has secured $250 million in new financing commitments to fuel growth. The company has also unveiled a new lease program called bizEV for its Mullen ONE, a Class 1 electric cargo van, aimed at individual buyers, small businesses, and fleets.

Mullen's ONE and THREE models, both compliant with U.S. Federal Motor Vehicle Safety Standards, the Environmental Protection Agency, and California Air Resources Board certifications, are at the forefront of this expansion. The company's production center in Tunica, Mississippi, has manufactured hundreds of Class 1 and Class 3 electric vehicles in 2024, and the company has begun fulfilling orders from its U.S.-based facilities. These are all recent developments in Mullen Automotive's operations.

InvestingPro Insights

Mullen Automotive's (NASDAQ:MULN) recent sale of the Mullen THREE EV truck to Princeton University underscores its strategic entry into the institutional market, aligning with sustainability goals. The InvestingPro data shows a challenging financial landscape for Mullen, with a market capitalization of just $10.9 million and significant revenue decline over the last twelve months as of Q3 2024, with a decrease of 49.17%. This is further reflected in the company's gross profit margin at a staggering negative 1364.48%, indicating substantial costs outweighing revenue.

From an investment standpoint, Mullen's stock price has been under considerable pressure, trading at a low price/book multiple of 0.31, suggesting that the market values the company at close to the net value of its assets. This could be a point of interest for value investors, as highlighted by one of the InvestingPro Tips, which points out that the stock is trading at a significant discount to book value. However, investors should be cautious, as another InvestingPro Tip warns that the company may have trouble making interest payments on its debt, indicating potential financial distress.

For those interested in the volatility and trading patterns of Mullen's stock, the company's shares have experienced high price volatility, with the stock taking a notable hit over the past week. This could be an opportunity for traders looking for short-term movements, although the overall trend has been downward, with the stock trading near its 52-week low.

For additional insights and tips on Mullen Automotive and to explore the full spectrum of financial data and analytics, further InvestingPro Tips are available at Investing.com. There are currently 19 additional InvestingPro Tips listed for Mullen Automotive, which can provide investors with a more comprehensive understanding of the company's financial health and market position.

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