Mullen Automotive (NASDAQ: MULN), a California-based electric vehicle (EV) manufacturer, has embarked on a significant global expansion by shipping its first batch of vehicles to Volt Mobility in the United Arab Emirates (UAE). This initial delivery is part of a $210 million purchase agreement, highlighting a pivotal moment for Mullen's commercial EV sector and its foray into international markets. The contract entails the supply of 3,000 Class 1 and Class 3 EV cargo vans and trucks over 16 months, aimed at leasing to major corporate clients such as UPS, DHL, and FedEx in the region.
David Michery, CEO and chair of Mullen Automotive, shared his optimism about the shipment, emphasizing the company's dedication to a seamless vehicle rollout in the UAE with support from a Mullen team in Dubai. This venture not only marks Mullen's entry into the Middle Eastern market but also reflects the escalating need for eco-friendly transportation options in logistics and delivery services worldwide.
The agreement follows Mullen's European expansion, reinforcing its status as an emerging contender in the global EV arena. Fulfilling this contract could pave the way for Mullen to penetrate other markets, especially those transitioning to greener fleet solutions. The company's recent milestones, including the start of commercial vehicle production in Tunica, Mississippi, and IRS approval for federal EV tax credits, bolster its market position.
Mullen's Class 1 EV cargo van and Class 3 EV cab chassis truck have achieved certifications from the California Air Resource Board (CARB) and the EPA, facilitating their U.S. sales. The Class 3 model's eligibility for the HVIP program, offering up to $45,000 in purchase vouchers, further attracts potential buyers. Additionally, Mullen's Tunica facility's Foreign Trade Zone (FTZ) status enhances its international competitiveness by deferring and eliminating certain duties.
This partnership with Volt Mobility underscores Mullen Automotive's expanding global footprint and the rising international appetite for electric commercial vehicles. It not only opens substantial revenue streams for Mullen but also advances sustainable transportation in the Middle East, a region historically dominated by fossil fuels.
