This morning, Mullen Automotive (NASDAQ:MULN) announced that it will commence production of its Class 3 vehicle, called the Mullen THREE, starting in July. Production will begin at its facility in Tunica, Mississippi. The electric vehicle (EV) company will also team up with NRTC Integration for “Class 3 assembly line installation and integration, which includes all robotics and automation systems for vehicle production.” NRTC will assist with the initial production launch and will then provide further support once Mullen increases its production capacity.
“It’s gratifying to see our Class 3 vehicle production line coming together in Tunica and even more validating to know we will have vehicles coming off the line and delivered to customers later this summer,” said CEO David Michery.
At the time of the announcement, Mullen has received $279 million in purchase orders for its Class 3 and Class 1 vehicles from Randy Marion Automotive Group (RMA).
MULN Stock: Mullen Will Start Class 3 Production in July
Mullen’s facility in Tunica has recently been updated, with new additions such as automated guided vehicles, chassis assembly lines, a water test booth, and robots to assist with production. The company has also hired 35 additional plant staff.
Mullen announced earlier this month that RMA had placed a 1,000-vehicle order for the THREE. In total, the purchase order is valued at $63 million, with deliveries and revenue collection expected to begin this August. At the time, RMA Fleet Operations Fleet GM and VP Brad Sigmon noted that interest surrounding Mullen’s commercial vehicles was very high.
Before that, RMA placed a $200 million purchase order for 6,000 Class 1 EV cargo vans last December. Mullen noted that deliveries would begin Q1 of this year but did not provide a completion date.
With RMA acting as the fulfillment agent, Mullen also signed a $15.75 million purchase order for 250 THREEs with MGT Lease earlier this month. Mullen expects to begin deliveries for the MGT order starting in August, with an expected completion date in December.
These purchase orders will finally allow Mullen to collect revenue, although shareholders will have to wait for August. The EV company recently disclosed in its earnings report that it made zero dollars in revenue for the three months ended March 31.
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.