Mullen Automotive (NASDAQ:MULN) stock is back in the spotlight after the electric vehicle (EV) company announced that it had delivered another 130 ONE Class 1 cargo vans to Randy Marion Automotive Group (RMA). The company has invoiced the dealership $4.37 million for the delivery.
Mullen has now delivered a total of 230 ONEs and has invoiced $7.73 million to RMA as part of the deliveries. These deliveries are part of RMA’s purchase order for 1,000 ONEs.
“2024 has started strong and will be a solid year overall for our commercial EV efforts,” said RMA Fleet Vice President Brad Sigmon. “The Mullen ONE is a great EV alternative for many of our customers and we continue to see strong demand and interest across the board.”
MULN Stock: Mullen Delivers 130 ONEs to RMA
Now, it’s up to RMA to sell the vehicles to its customers. If the vehicles aren’t sold within 12 months and have less than 500 miles, then RMA is eligible to receive a full refund. Per the order agreement between the two parties:
“DEALER will endeavor, to the extent practicable considering all relevant factors, to sale and deliver all MULLEN Products and services that are ordered by the DEALER. At Dealer’s discretion, any new products (less than 500 miles) not sold by Dealer after a period of twelve months can be returned to MULLEN at original pricing.”
Mullen has not yet disclosed the number of its vehicles that RMA has sold to its customers.
As for the invoices, Mullen added in its 2023 full-year results that it has a 30-day payment term with RMA.
The ONE deliveries come after Mullen announced last week that Bollinger Motors, its subsidiary, had received a purchase order for 40 of its B4 Class 4 chassis cab commercial EV trucks. The order is valued at approximately $6 million, and using exactly $6 million would bring us to $150,000 per truck. Mullen expects to begin production of the B4 in mid-2024.
Additionally, the truck is expected to be eligible for a “federal purchasing incentive of 30% of the cost of the vehicle, up to a total of $40,000, through the Inflation Reduction Act of 2022.”
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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.
