In early November, Mullen Automotive (NASDAQ:MULN) announced that it had entered into an agreement with Newgate Motor Group, a dealership group in Ireland. The agreement stipulated that Newgate would become the I-GO “marketing, sales, distribution and servicing agent” in the U.K. and Ireland.
Mullen also said that it would enter into a dealer agreement with Newgate that would see it purchase initial units of the I-GO for demonstration and 500 I-GOs per year. As the dealer, Newgate would be responsible for sales, warranties and other matters “that an OEM would typically provide to its dealers.” Mullen noted in the release that it expected Newgate to receive the first shipment of I-GOs by Dec. 20.
At the time, CEO David Michery added:
“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.”
MULN Stock: Where Are Mullen’s I-GOs?
On Dec. 22, the electric vehicle (EV) company announced that the I-GOs had arrived in Europe, but not yet in Ireland. Mullen attributed the delay to Covid-19 shutdown issues in China. So, what exactly does China have to do with the I-GO?
The I-GO is not a proprietary vehicle. Rather, the I-GO is available on a wholesale Chinese website with the manufacturer listed as Henan Henrey Shiying Vehicle. The reason for the delay confirmed that Mullen acquired these vehicles from China.
The wholesale website prices a sample version of the I-GO at $9,385. The manufacturer has a listed capacity of 50,000 vehicles per year as well. Meanwhile, the origin of the vehicle is listed as Henan Province, China.
As a result, Mullen added in it’s Dec. 22 update that it expected the I-GO to arrive in Ireland by early January. However, the month of January is now over and there is still no word on the status of Mullen’s vehicles.
In an unconfirmed email screenshot found on Reddit, an alleged Newgate employee stated that there is currently one I-GO vehicle on the way. If true, this is likely the demonstration vehicle.
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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.
