Mullen Automotive, Inc. (MULN) shares experienced a surge on Wednesday following the company’s announcement regarding the shipment of the first batch of vehicles under a substantial $210 million contract with Volt Mobility, a UAE-based enterprise. This agreement signifies a crucial step for Mullen, with revenue recognition set to commence in the first fiscal quarter beginning October 1, 2024.
The contract entails Volt procuring 3,000 Mullen Class 1 and Class 3 electric cargo vans and trucks over the next 16 months. This multi-vehicle deal officially began on September 2, 2024, with the initial shipment of these commercial EVs. The plan outlines the delivery of 300 vehicles within 2024. The agreement includes an initial deposit of $3 million, as stated in the company’s announcement on August 26, 2024. Subsequent payments are expected upon vehicle deliveries.
Volt intends to lease these vehicles to corporate clients in the Middle East and Gulf States. Volt’s existing clientele, including UPS, DHL, and FedEx, operates throughout the Gulf Cooperation Council region, encompassing Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).
The vehicles for this order are being assembled at Mullen’s Commercial Vehicle Facility in Tunica, Mississippi. This facility possesses the capacity to produce 20,000 Class 1 and 6,000 Class 3 vehicles annually with two production shifts.
Mullen’s commercial electric vehicle lineup encompasses the Mullen ONE Class 1 EV cargo van, the Mullen THREE Class 3 EV cab chassis truck, and the Bollinger B4 Class 4 and Bollinger B5 Class 5 EV cab chassis trucks, which are manufactured by its subsidiary, Bollinger Motors. Production of the Bollinger B4 is scheduled to commence on September 16, 2024, with deliveries starting in October 2024.
