Mullen Automotive (NASDAQ:MULN) stock is rising higher after the electric vehicle (EV) company announced that it has partnered with Loop Global to power its charging network. The charging network, called the Mullen Charging Network Powered By Loop, will be able to support both Level 2 and 3 direct current (DC) fast charging.
These turnkey chargers will be co-branded by the two companies. A turnkey product is defined as a completed product that is ready to be sold to the buyer. Loop will offer up to $300 million in financing through its Loop-as-a-Service (LaaS) program to build these chargers. Furthermore, the two companies will join to “finance and/or own and operate” the network through the Loop Impact Fund.
Through LaaS, customers will receive a “no Capex budget solution for the turnkey installation of EV charging infrastructure at $0 down, utilizing a portion of the estimated monthly charging revenue to pay for the upgrades over a fixed term.”
MULN stock is currently up more than 8% on the news.
MULN Stock: Mullen Signs Charging Network Agreement With Loop Global
Loop currently services more than 75 network partners across the globe. The company boasts that customers can realize net positive cash flow from the first day of using its LaaS program. The program generates money by collecting a monthly fee from charging revenue. Meanwhile, installation and maintenance costs can be “as little as $0 out of pocket.”
Mullen CEO David Michery had the following to say about the charging network news:
“Our partnership with Loop will not only enable us to provide turnkey EV charging solutions to our customers, but also the Loop Impact Fund commitment is an opportunity to provide our customers with potential cash flow-positive alternative financing when implementing the Mullen EV Charging Network Powered by Loop […] In addition to being highly strategic, this partnership aligns with our goal of end-to-end efficiency to make owning a Mullen EV much more user friendly.”
This news comes just one day after Mullen announced that it would partner with Randy Marion Automotive (RMA). RMA will act as a commercial dealer, selling and servicing Mullen’s Class 1 through Class 6 EV cargo vans and trucks. The purchase terms of the partnership were not immediately disclosed.
Meanwhile, Michery himself will benefit heavily from the partnership. The CEO’s performance stock award agreement states that he will receive 2% of all shares outstanding for establishing an “agreement with an established local, USA dealer or franchise network.”
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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.
