Mullen Automotive Secures $3.2 Million Order from Papé Trucks, Expanding EV Commercial Vehicle Market Reach

Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle manufacturer, has announced a substantial $3.2 million purchase order from Papé Trucks, signaling a significant step forward in the commercialization of electric vehicles in the commercial sector. This development underscores the growing demand for electric commercial vehicles and Mullen's expanding footprint in the industry.

The order, placed by Papé Trucks, Mullen's seventh franchise dealer partner, comprises 43 Class 3 EV trucks and 7 Class 1 EV cargo vans, along with accompanying parts for both vehicle classes. Papé Trucks, with its extensive network of 30 commercial sales and service locations across the Western United States, is poised to play a crucial role in introducing Mullen's commercial EVs to a broader market.

This partnership is particularly significant as it combines Mullen's innovative EV technology with Papé's established reputation for exceptional customer service and wide-reaching network. The collaboration is expected to accelerate the adoption of electric commercial vehicles in key Western markets, potentially influencing the broader transition to sustainable transportation solutions in the commercial sector.

Mullen Automotive's CEO and chairman, David Michery, emphasized the strategic importance of this partnership, stating, "Papé's expertise and reach will play a crucial role in establishing new Mullen customers across the U.S." This statement highlights the potential for significant market expansion and increased visibility for Mullen's commercial EV offerings.

The timing of this order is particularly noteworthy, coming on the heels of Mullen's recent achievements. In August 2023, the company began commercial vehicle production at its Tunica, Mississippi plant, and in September, it received IRS approval for federal EV tax credits on its commercial vehicles. These developments, coupled with the California Air Resource Board (CARB) and EPA certifications for both the Mullen ONE and Mullen THREE vehicles, position the company favorably in the competitive EV market.

Furthermore, the CARB-issued HVIP approval on the Mullen THREE, Class 3 EV truck, which provides up to a $45,000 cash voucher at the time of vehicle purchase, adds a significant financial incentive for potential customers. This incentive, combined with the federal tax credits of up to $7,500 per vehicle, could substantially boost the attractiveness of Mullen's offerings in the commercial EV space.

The expansion of Mullen's commercial dealer network to seven dealers, including the addition of Papé Kenworth, is a strategic move that enhances the company's sales and service coverage across key regions in the United States. This expanded network is crucial for penetrating new markets and providing comprehensive support to customers, potentially leading to increased sales and market share.

Mullen's recent approval for Foreign Trade Zone (FTZ) status at its Tunica, Mississippi manufacturing center adds another layer of competitive advantage. The FTZ status offers benefits such as duty deferment and elimination of duties on exported vehicles, which could contribute to cost efficiencies and potentially more competitive pricing in the market.

As the commercial sector increasingly looks towards sustainable transportation solutions, Mullen Automotive's latest deal with Papé Trucks represents more than just a significant order. It signals a growing acceptance of electric vehicles in commercial applications and highlights the potential for rapid growth in this segment of the automotive industry. The success of this partnership could serve as a catalyst for further adoption of EVs in commercial fleets across the United States, contributing to reduced emissions and operational costs for businesses.