Mullen Automotive (NASDAQ:MULN) stock is in the spotlight after the electric vehicle (EV) company announced that it would begin developing a lightweight truck body for its Class 3 EV in collaboration with Phenix Truck Bodies & Van Equipment. Phenix will take on the brunt of the work and develop a “unique, light-weight body configuration designed to satisfy the needs of Class 3 service body truck fleets.”
Mullen aims to offer the finished product as an alternative to internal combustion engine (ICE) vehicles. Once the body is successfully up-fitted, it will be made available to Phenix’s commercial fleet customers for testing.
“Phenix, in its 45-year history, has outfitted vehicles for some of the largest commercial public utility customers in the western U.S. with [a] focus on Southern California,” said Mullen CEO David Michery, “Having the opportunity to add our commercial EVs into the mix with Phenix and their large fleet business is a great step forward for our commercial business.”
MULN Stock: Mullen Announces Class 3 Collaboration with Phenix
Phenix characterizes itself as “Southern California’s Largest And Most Complete Truck Body & Van Equipment Manufacturer And Distributor.” Its long-term customers include several utility companies, such as Southern California Gas Company and Southern California Edison. This collaboration could be beneficial to Mullen if it’s able to snag one of these customers.
The Class 3 EV, or Mullen THREE, has a range of 130 miles and a max payload of 5,802 lbs. The range of the vehicle seems limited, which could pose problems for potential customers. Mullen’s facility in Tunica, Mississippi will produce the vehicle, while deliveries have been forecast to begin in August and September.
For those with range anxiety, Mullen Automotive Advanced Energy Solution’s (MAEO) energy management module (EMM) seeks to fix that. The module was tested on Mullen’s Class 1 EV cargo van, showing a “more than 75% increase in range for a 42-kWh lithium-ion battery pack.” Mullen seeks to introduce the EMM into all of its commercial and consumer vehicles. Few updates have been provided since the initial announcement, leading many shareholders to doubt the technological claims.
On Penny Stocks and Low-Volume Stocks:?With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that?InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More:?Penny Stocks — How to Profit Without Getting Scammed
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.
