Mullen Automotive, Inc. (NASDAQ: NASDAQ:MULN), an electric vehicle manufacturer, has formally announced its partnership with National Auto Fleet Group (NAFG), a commercial dealer based in California. This collaboration will see NAFG distributing Mullen’s electric commercial vehicles, which includes the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck.
NAFG, an experienced player in the industry since 1980, has carved a niche in government fleet sales and holds awarded Sourcewell contracts (#091521-NAF and #060920-NAF) aimed at simplifying the purchasing process for government agencies. Sourcewell, a government agency, provides ready-to-use contracts for its members, eliminating the need for individual bidding procedures. The goal of this partnership is to offer efficient, zero-emission fleet options for municipal and government entities, with NAFG leveraging its expertise and Sourcewell support.
The Mullen THREE has been approved by the California Air Resource Board (CARB) under the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP), allowing for an up to $45,000 cash voucher at the point of sale. Additionally, the vehicle is also eligible for a federal tax credit of $7,500, significantly reducing the effective cost of the vehicle.
Both the Mullen ONE and Mullen THREE are fully compliant with U.S. Federal Motor Vehicle Safety Standards, as well as EPA and CARB certifications, making them ideal for public fleets. Mullen’s electric vehicles are proudly assembled in the United States, reflecting the company’s commitment to American manufacturing.
David Michery, CEO of Mullen Automotive, emphasized the importance of the collaboration with NAFG and its extensive experience in serving government agencies in introducing their commercial EVs to public fleets across the nation.
InvestingPro Insights:
Mullen Automotive’s recent partnership with National Auto Fleet Group (NAFG) has captured the attention of investors, prompting a closer look at the company’s financial metrics and management activities. With a market capitalization of 27.29 million USD, Mullen Automotive is establishing itself as a key player in the electric vehicle arena. The company is currently trading at a low Price / Book multiple of 0.13, indicating potentially undervalued assets relative to its share price. Despite this, the company is facing substantial financial challenges, with a gross profit margin of -458.51% in the last twelve months as of Q1 2024, signifying that it is not generating profits from its operations at present.
One notable observation is that Mullen’s management has been actively repurchasing shares, potentially reflecting their confidence in the company’s future prospects. Additionally, the company has more cash than debt on its balance sheet, a positive indicator of financial stability, particularly for investors seeking firms with solid liquidity. However, it’s essential to acknowledge that Mullen is rapidly depleting its cash reserves, raising concerns about its long-term sustainability.
For investors considering Mullen Automotive as a potential addition to their portfolio, there are 17 additional InvestingPro Tips available, offering a deeper dive into the company’s financial health and market position. These valuable insights can be accessed through the InvestingPro platform, empowering investors to make well-informed decisions when evaluating the potential of Mullen Automotive in light of its new strategic partnership and the broader electric vehicle market.
For those interested in delving into these additional insights, a special offer is available using the coupon code PRONEWS24 to receive an extra 10% discount on a yearly or biyearly Pro and Pro+ subscription. This strategic offer provides access to comprehensive financial analysis and market data, which could prove beneficial in assessing the potential of Mullen Automotive within the context of its new strategic partnership and the wider electric vehicle market.