Shares of Mullen Automotive (NASDAQ:MULN) stock opened higher by about 8% following an announcement that Mullen Advanced Energy Operations (MAEO) would install its Energy Management Module (EMM) technology on Chevrolet Bolts within Washington, D.C’s fleet of government vehicles. The contract, which was previously awarded to EV Technologies, has a value of $680,000 and encompasses the purchase and installation of EMM units. EV Technologies, Mullen, and Global EV Technology are part of the MAEO joint venture. Mullen owns a 51% stake in the entity, while the other two parties own a combined 49% stake.
“The DC city project is the first of many that we have planned for the new EMM technology,” said Mullen CEO and Chairman David Michery.
“Municipal city fleets are a perfect use case for EVs and even better with our Energy Management Modules added for extending vehicle range and performance. Ideally, the vehicles can spend less time charging and more time in the local communities for civic use and support.”
MULN Stock: Mullen Begins EMM Installation in D.C.
Installation of the EMM units will begin today, as Mullen’s engineers are currently present in the nation’s capital. They will also be required to “perform the required tests included in the pilot.”
On top of that, Element Materials Technology (EMT) has already conducted testing of the efficiency of the EMM technology on the vehicles. In March of 2021, EMT concluded that specific vehicle testing showed that adding EMM units on Chevrolet Bolts increased the vehicles’ range to 431 miles from 269 miles, demonstrating a 60% increase. The range increase is the same as the results of a “Specific vehicle testing of a high-volume OEM electric vehicle” noted in Mullen’s original MAEO press release, which implies that the Bolt was the previously tested vehicle.
Meanwhile, it appears that MAEO has several action plans up its sleeve. Last week, EV Technologies Founder and Chief Scientific Officer Lawrence Hardge appeared on a livestream and teased a “$10 billion contract” with Saudi Arabia that has been “already agreed upon.” However, neither Mullen nor MAEO has verified his claims yet.
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.