Mullen Automotive (NASDAQ:MULN) stock opened higher by about 7% after the electric vehicle (EV) company announced that it had secured a 500-vehicles-per-year purchase order from Newgate Motor Group. Newgate will also become Mullen’s sales and distribution agent for the I-GO in Ireland and the United Kingdom. In the press release, Newgate was characterized as “one of Ireland’s most recognized dealership groups.” The dealership sells vehicles from brands including Mercedes Benz (OTCMKTS:MBGYY), Kia and Renault (OTCMKTS:RNLSY)
Mullen announced last month that it had secured the rights to distribute the I-GO, which is a compact urban commercial delivery EV. The EV will have a starting price of $11,999, excluding value-added tax (VAT) or local transportation costs. In addition, it has an estimated range of 124 miles per charge and will have a 16.5-kWh battery pack. The price of each vehicle has not been disclosed, although it is available on a Chinese wholesale website for $9,385 per vehicle or $9,080 per vehicle for orders of 50 or more. Another website lists the price at between $8,140 and $8,560.
Furthermore, the I-GO has already been homologated for the European Union and is certified for sale in the UK, Germany, Spain, France and Ireland.
MULN Stock: Mullen Signs Purchase Order With Newgate
Mullen and Newgate will also enter into a dealer agreement, which will provide Newgate with “sales training, service training, flooring, parts, warranty, and similar matters that an OEM would typically provide to its dealers.” Newgate will receive its first shipment of I-GOs on Dec. 20. On top of that, Germany will also receive its first I-GOs during that month. Newgate General Manager James Ring added:
“We believe the Mullen I-GO is the logistical solution the European market is looking for as demand increases for zero-emission delivery vehicles. The demand for zero-emission, compact delivery vehicles has never been higher, and we believe Mullen has produced a vehicle to meet this demand and has the potential to command a substantial market share.”
Mullen also has another catalyst quickly approaching. In July, Mullen announced that it had a signed a binding agreement with DelPack Logistics (DPL) to provide it with 600 Class 2 cargo vans over the next 18 months. “At the request of DPL,” the first 300 vans could be delivered by Nov. 30. Mullen has not yet announced whether DPL has requested these vehicles, although investors should receive an update soon.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.