Shares of Mullen Automotive (NASDAQ:MULN) stock opened higher by over 20% after the electric vehicle (EV) company announced that four of its class 1 EV cargo vans had been delivered to MGT Lease Company in Highpoint, North Carolina. Randy Marion Automotive Group (RMA) assisted in fulfilling the order. On top of that, Mullen stated that a “forthcoming announcement” concerning the delivery of more class 1 cargo vans would follow.
MGT’s customer focus is on last-mile services for leasing companies and retail commercial dealerships. In addition, MGT sells and leases commercial vehicles “across all major OEM brands, with focus on class 1-4 commercial vehicles.” Last year, the company delivered over 1,500 commercial vehicles and reported revenue of $70 million. Revenue is expected to grow by about 43% to $100 million this year.
“Mullen’s class 1 is a perfect entry point for us and working with the Company,” said MGT Managing Partner Thomas Gavlik. He added:
“The class 1 segment no longer has internal combustion engine options from the major OEM brands and certainly does not have any class 1 EV options. One of the biggest opportunities we see is the class 3 cab-chassis segment, with the potential to upfit and offer unlimited options for commercial customers.”
MULN Stock: Mullen and Randy Marion Deliver Class 1 EV Cargo Vans to MGT
With the initial deliveries to MGT set in stone, investors are now wondering about the “forthcoming announcement.”
Earlier in March, CEO David Michery had stated that the initial deliveries of class 1 cargo vans to Randy Marion Isuzu (RMI), a unit of RMA, would be completed before the end of March. It’s unclear if the deliveries announced today that were fulfilled by RMA are the same deliveries cited in Michery’s statement. There was no mention of RMI in today’s delivery announcement. Back in December, RMI had placed an order for 6,000 class 1 cargo vans with an order value of about $200 million.
Meanwhile, another Mullen catalyst seems to be just around the corner. On Feb. 2, the company announced that it had initiated a 60-day pilot program with Menzies Aviation and Loop Global for its class 1 cargo van. Assuming that the program was started on the same day of the announcement, the last day of the program would fall on April 3.
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.