Mullen Receives New $15.7 Million Purchase Order

Market News Daily - Mullen Receives New $15.7 Million Purchase Order.
Market News Daily – Mullen Receives New $15.7 Million Purchase Order.

Mullen Automotive (NASDAQ:MULN) has received a new $15.7 million purchase order for 250 Class 3 Commercial EV trucks.

The company announced on Thursday the contract is valued at $15,755,000 for a full delivery date by December 2023.

Mullen announced the signing of a vehicle purchase agreement with MGT Lease Company (“MGT”), a national fleet leasing provider, to purchase 250 all-electric commercial class 3 cab chassis EV trucks.

The vehicles are slated for delivery beginning in August 2023, with complete fulfillment of the purchase agreement occurring by December 2023.

The vehicle orders will be fulfilled through Randy Marion Automotive Group, a distributor of Mullen’s commercial EVs.

We are excited to begin delivering trucks to MGT Leasing this summer as they continue to scale up their business,” said John Schwegman, chief commercial officer Mullen Automotive.

Mullen Automotive recently announced a $263 million order for both Class 1 and Class 3 EVs as well as new updates on these vehicles.

The company stock just went through a 1-for-25 reverse stock split to meet Nasdaq’s $1 bid requirement.

MULN stock is currently trading at $1.41 with a 2% gain on Thursday.

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Who is MGT?

MGT is a growing commercial vehicle sales and leasing company based in North Carolina, with annual revenue of over $70 million in 2022 and $100 million projected for 2023.

MGT’s primary customer base focuses on last mile segments, such as package delivery and retail, and vocations, such as plumbing and electrical.

The company currently provides commercial vehicle sales and leasing across all major OEM brands, with a focus on class 1-4 commercial vehicles. 

MGT will purchase Mullen’s all-electric Class 3 EV cab chassis truck, the Mullen THREE, for its short- and long-term fleet leasing portfolio focused on small, medium, and enterprise businesses.

MGT is a Mullen Automotive repeat customer, initially purchasing EV cargo vans from Mullen in March 2023 and now expanding into the larger class 3 cab chassis EV trucks with an initial order of 250 units, demonstrating the demand for this premium commercial truck.

This new order follows Randy Marion’s initial order for 1,000 units placed in early May 2023.

“We are very happy with the Mullen EV cargo van and have received great customer feedback and are now looking forward to expanding into Mullen’s commercial class 3 truck,” said Greg Striker, partner at MGT Lease Co.

“Momentum continues following last week’s pricing announcement for our Class 3 all-electric cab chassis truck.

“Our agreement with MGT enables them to offer their fleet customers a competitive commercial EV vehicle offering, including both our EV cargo van and now the larger Class 3 EV truck,” said David Michery, CEO and chairman of Mullen Automotive.

Latest Mullen Automotive News

Mullen Automotive has become an exclusive partner to a new federal contractor.

The company announced today teaming up with Rapid Response Defense Systems (“RRDS”) to fast-track U.S. Federal Government opportunities for potential large-scale vehicle fleet orders.

RRDS, one of the country’s leading small business federal contractors, has executed over 2,500 federal government delivery orders since 2014.

The company currently holds a prime seat on 12 Indefinite Delivery/Indefinite Quantity (IDIQ) federal contracts with combined funding ceilings of $4 billion.

In 2021, U.S. Secretary of Labor Martin J. Walsh recognized RRDS as a recipient of the 2021 HIRE Vets Medallion Award during an award ceremony at the U.S. Department of Labor.

“RRDS is all about providing solutions to the federal government,” said Mullen’s Manager of Government Sales Ronald Dixon.

“Whether its designing products to meet Department of Defense mission requirements or enhancing supply chain logistics, they have a remarkable success record.

In addition, RRDS will be a key vehicle supplier to the General Service Administration in an awarded 5-year multibillion-dollar vehicle contract.

We are focused on selling our EV products to the federal government and view this relationship as a strategic step in accomplishing that goal.”

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Market News Today - Mullen Receives New $15.7 Million Purchase Order.
Market News Today – Mullen Receives New $15.7 Million Purchase Order.

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