Last month, Mullen Automotive (NASDAQ:MULN) announced that it had entered into an agreement with Newgate Motor Group. The agreement will see Mullen appoint Newgate to become its marketing, sales, distribution and servicing agent for the upcoming I-GO electric vehicle (EV) in Ireland and the United Kingdom.
Newgate boasts 40-plus years of experience in the auto industry and is a top retailer for new and used Mercedes-Benz (OTCMKTS:MBGYY) and Kia vehicles in Ireland. The dealership group also has distribution connections across the U.K. and “various parts of Europe.”
CEO David Michery added the following in the press release:
“This is a highly strategic partnership for Mullen, with Newgate being one of Ireland’s most recognizable dealers for new and used vehicles; it brings us an incredible opportunity to enter the commercial EV market in Europe with a very successful retail group […] We are currently working closely with Newgate on the importation, registration, and licensing requirements for the successful import and distribution of the I-GO into Ireland and the United Kingdom.”
Mullen and Newgate will also enter into a dealer agreement that will “encompass sales training, service training, flooring, parts, warranty, and similar matters that an OEM would typically provide to its dealers.”
Here’s what MULN stock investors should know moving forward. Let’s get into the details.
Dear MULN Stock Fans, Mark Your Calendars for Dec. 20
The dealer agreement will solidify the terms in which Newgate will purchase 500 vehicles per year. It will also address the terms in which Newgate purchases the first units of the I-GO for demonstration and testing. Mullen has stated that it expects the delivery date for its first shipments of I-GOs to fall on Dec. 20, which is less than three weeks away. No other updates have been given since the initial press release.
Earlier this year, Mullen disclosed that the I-GO is European Union (EU) standard approved and “ready for sale” in the U.K., Germany, Spain, France and Ireland.
All told, the I-GO shipments would mark a major milestone for Mullen, as the company does not have any vehicles on the road yet. Investors should note that Mullen appears to be delivering the initial testing units of the I-GO on Dec. 20 and not the 500-vehicles-per-year purchase order. Still, this is a step in the right direction for the EV startup and MULN stock.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
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.