The big news surrounding Mullen Automotive (NASDAQ:MULN) this week is its recent 1-for-25 reverse stock split, which sent shares above $1. Since then, MULN stock has stayed above $1. However, they must stay there for at least 10 consecutive days before Sept. 5 in order to satisfy the Nasdaq minimum price requirement.
Yesterday, Mullen announced the prices for its Mullen ONE, a Class 1 EV cargo van, and its Mullen THREE, a Class 3 EV cab chassis truck. Both vehicles will be able to qualify for the $7,500 federal tax credit. The ONE will have a starting manufacturer’s suggested retail price (MSRP) of $34,500, while the THREE will start at $68,500. After accounting for the $7,500 credit, the ONE will have a net price of $27,000, while the THREE will be $61,000.
MULN Stock: Mullen EVs Will Qualify for Federal Tax Credit
The THREE will also be able to qualify for some state incentives, including California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). The project provides an incentive of up to $45,000 for commercial Class 3 vehicles.
What’s more, Mullen has already received purchase orders for both vehicles. The company announced earlier this week that Randy Marion Automotive Group (RMA) has placed purchase orders for Class 1 and 3 vehicles worth $263 million. Out of that total, $63 million of the purchase order is allocated toward 1,000 Class 3 trucks. The remaining $200 million is for 6,000 Class 1 vans. Mullen is expected to begin manufacturing of RMA’s Class 3 trucks by August. Deliveries will likely begin in the same month and be completed by Q1 2024.
As of May 4, Mullen had already delivered 19 cargo vans, with another 20 expected for delivery by the end of the month. Furthermore, an additional purchase order for 200 cargo vans is expected to be announced this month.
Mullen also released an update on its consumer vehicle, the Mullen FIVE. A styling freeze of the vehicle will be enacted in Q4, while the production design will likely be revealed at the Consumer Electronics Show (CES) in January 2024. The FIVE will also make appearances at Mullen’s August 2023 Strikingly Different EV Tour. A drivable version of the Mullen GT will make an appearance in September.
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.