Mullen Automotive (NASDAQ:MULN) stock is down more than 15% today. This movement is despite a positive update to the end of the electric vehicle (EV) company’s 60-day pilot program with Menzies Aviation and Loop Global at Los Angeles International Airport ( ).
Menzies was in charge of operating the program at LAX, while Loop provided charging infrastructure services with its Level 2 chargers through its EV fleet-as-a-service (EVFaaS) program. The three companies worked together to pilot Mullen’s Class 1 EV cargo van.
Mullen CEO David Michery said the following about the news:
“The LAX pilot was very important in quantifying the efficiency, uptime, and cost savings that can be achieved with our Class 1 EV vans. Successful pilots such as this demonstrate how companies can scale their fleet operations with commercial EV offerings from Mullen.”
MULN Stock: Mullen Completes Pilot Program With Menzies Aviation and Loop Global
Two of Mullen’s vans were tested out at the airport and logged more than 1,500 miles during the program. The vans were evaluated for several use cases, such as transporting equipment and employees to airplanes. Mullen added that the vans experienced no maintenance issues. They also demonstrated electricity cost savings of about 66% compared to gas-equivalent vehicles and reduced CO2 emissions by about 83%.
Following the completion of the program, Menzies requested modifications to the van. These include “increased seating capacity and additional windows for enhanced driver visibility.” After Mullen completes these modifications, the company expects that Menzies will use the EVs to “expand its fleet globally.” Mullen did not provide a timeline for the completion of the modifications.
The Class 1 EV cargo van seems to be making several strides in the commercial market. Last week, Mullen announced that it had delivered four vans to MGT Lease Company, with Randy Marion Automotive Group (RMA) acting as the fulfillment agent. MGT operates as a fleet leasing company that delivered 1,500-plus commercial vehicles last year. Mullen expects to make additional deliveries to MGT in the future.
Mullen also announced that it had delivered seven vans to the University of North Carolina at Charlotte (UNC Charlotte). Similar to the MGT order, Mullen expects to deliver additional vehicles to UNC’s 16 campuses within the upcoming year.
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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.