Mullen Automotive (NASDAQ:MULN) stock is trending once again after the electric vehicle (EV) company announced that majority-owned Bollinger Motors had received a $3 million grant towards creating jobs from the state of Michigan. The Michigan Strategic Fund Board approved the grant through the Michigan Business Development Program in a unanimous decision. In addition, Bollinger is also eligible for roughly $2 million in “talent services and training support through Oakland County Michigan Works.”
However, the $3 million won’t be received immediately. Bollinger must satisfy certain job creation milestones over the next five years in order to receive the funds. The milestones were not immediately specified.
“Bollinger Motors is poised for growth and we’re proud to be focused on expanding our company’s operations as we approach start-of-production,” said Bollinger CEO and Founder Robert Bollinger. “I appreciate Michigan’s faith in our plan and our product as we seek to electrify America’s fleets.”
MULN Stock: Bollinger Receives $3 Million Grant
Last September, Mullen acquired a 60% controlling interest in Bollinger for $148.2 million in stock and cash. Earlier this month, Bollinger announced that it had initiated its “design validation” pilot builds for its B4 chassis cab for testing and demonstration, its first press release since November of 2022. Furthermore, production of the pilot chassis cab has begun in Livonia, Michigan, in collaboration with Roush Industries. Bollinger anticipates production of five chassis cabs during the summer, with another 15+ chassis cabs by the end of the third quarter. After that, deliveries are expected in July 2024.
“Bollinger Motors has over 8 years of experience in developing, producing, and testing all-electric trucks,” said Bollinger. “I’m excited to see our hard work come together in the B4 and to keep hitting our milestones.”
Bollinger will also hold a demonstration of the pilot chassis cab at a testing facility on the University of Michigan’s North Campus in Ann Arbor, Michigan, from Sept. 12 to 22. Before the event, the company will collaborate with multiple upfitting partners to prepare the chassis cab for fleet customization.
One factor helping potential sales of the B4 is the Inflation Reduction Act of 2022. Through the program, the B4 is eligible for a federal purchasing incentive of 30% of the vehicle’s cost, up to a maximum of $40,000.
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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.
