Mullen Automotive (NASDAQ:MULN) stock opened in the green following an announcement that the electric vehicle (EV) company had received a $321,000 purchase order from Newgate Motor Group. The purchase order is for 30 of Mullen’s Mullen-GO EVs. Mullen added that it expects Newgate to place additional orders for the commercial EV.
The Mullen-GO is classified as an urban commercial electric delivery vehicle with a range of 100 miles. With a max speed of just 62 miles per hour, the GO was designed to accommodate Europe’s narrow streets for quick deliveries.
Newgate is Mullen’s distribution and servicing agent in Ireland and the United Kingdom and is characterized by Mullen as “one of Ireland’s most recognized dealership groups.”
“Newgate has generated great interest on the Mullen-GO to-date, and we are excited to kick off sales in Europe with them,” said CEO and Chairman David Michery.
“As I have stated previously, the Mullen-GO is a great alternative vehicle for commercial delivery in dense metro European cities. The small size is perfect on tight Euro streets and the zero emissions and lower cost of ownership is a great combination for potential commercial customers.”
MULN Stock: Newgate Places Purchase Order for 30 Mullen-GOs
Back in November, Mullen had disclosed that Newgate had plans to purchase 500 vehicles per year. The 30-unit order is Mullen’s first sale of vehicles for delivery outside of the U.S. and in the European market. Revenue from the order is expected to be included in the company’s current fiscal quarter financials.
Mullen could also have other opportunities to sell the Mullen-GO in Europe, as it is European Union homologated and certified “in initial markets of the U.K., Germany, Spain, France, and Ireland.”
Unlike last year, Mullen is finally recording revenue. Last month, the company announced that it had collected its first-ever revenue to be recorded on its financial statements. The $308,000 in revenue stemmed from the sale of 22 EV cargo vans to the Randy Marion Automotive Group (RMA). RMA is Mullen’s authorized commercial distributor in the U.S. The revenue will be recognized in the quarter ending June 30.
As InvestorPlace contributor David Moadel put it, Mullen could finally be in for a turnaround. MULN stock is up 2% today but still down 98% year-to-date.
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.
