Mullen Automotive (NASDAQ: MULN) has recently announced a significant follow-on order for seven all-electric 2025 Bollinger B4 trucks from TEC Equipment, marking a pivotal moment in the company's commercial electric vehicle (EV) business. This order, following TEC's initial purchase of three B4 trucks in October 2024, highlights the increasing confidence in Mullen's EV offerings and its ability to meet the demands of commercial fleets. The revenue from this new order is expected to be recognized in the current fiscal quarter, providing Mullen with an immediate financial uplift.
The Bollinger B4 trucks, set for delivery across California, Oregon, and Washington, are a cornerstone of Mullen's strategy to penetrate key West Coast markets. The Class 4 B4 truck boasts an impressive 185-mile range and a 7,394-pound payload capacity, designed to cater to the rigorous requirements of commercial operations. Its emphasis on safety and efficiency positions it as a compelling choice for businesses transitioning to electric vehicles without compromising on performance.
One of the standout features of the Bollinger B4 is its eligibility for substantial federal and state tax incentives. These incentives can significantly lower the total cost of ownership for fleet operators, potentially hastening the shift towards electric vehicles in the commercial sector. Bollinger Motors, a subsidiary of Mullen Automotive, has achieved critical milestones, including EPA and CARB certifications for the B4 truck, affirming its environmental compliance and enabling sales in strict regulatory markets like California.
The commencement of production for the B4 truck represents a major leap forward for Mullen Automotive, transitioning the company from the development phase to active manufacturing. This move is timely, as it aligns with the escalating demand for electric commercial vehicles. Mullen has also expanded its commercial dealer network to seven dealers, including notable additions like Papé Kenworth, enhancing its sales and service infrastructure across the United States.
Further bolstering Mullen's strategic position is the recent Foreign Trade Zone (FTZ) status approval for its Tunica, Mississippi, manufacturing center. This designation offers Mullen considerable advantages, such as duty deferment and elimination on exported vehicles, which could refine the company's cost structure and bolster its competitiveness on the international stage.
The follow-on order from TEC Equipment not only injects immediate revenue into Mullen Automotive but also serves as a testament to the confidence in Mullen's products and strategic direction. For investors and industry watchers, this development is a clear indicator of Mullen's growing influence in the commercial EV space and its potential to capitalize on the increasing shift towards electrification in transportation, driven by environmental considerations and the pursuit of cost efficiencies.
