Shares of Mullen Automotive (NASDAQ:MULN) are in the red today, despite some company news. The electric vehicle (EV) company announced that its retail dealership partner, Randy Marion Automotive Group (RMA), received its North Carolina license to retail Mullen commercial vehicles. In combination with the original equipment manufacturer (OEM) license that Mullen previously received, the two licenses allow for the transfer of vehicles to customers.
Beginning on Nov. 20, RMA will begin the process of delivering its “initial Class 3 vehicles” to Adventure Coast Rentals, Godotek and NRTC Automation Group.
“We are receiving tremendous interest in both Mullen’s Class 1 and Class 3 vehicles,” said RMA VP of Fleet Operations Brad Sigmon. “With our dealer license in hand, we will begin Class 3 deliveries immediately and begin taking deliveries on Mullen’s Class 1 vehicles in early December.”
MULN Stock: RMA to Begin Class 3 Deliveries on Nov. 20
Mullen’s commercial assembly plant in Tunica, Mississippi, will also begin the process of deliveries on Nov. 20. The assembly plant expects to ship out 40 completed vehicles, which are “pre-sold and ready for RMA customers,” such as Duke Energy, Merchants Fleet and MGT Leasing.
Meanwhile, Mullen reiterated guidance for delivery of 150 Class 3 vehicles and 300 Class 1 vehicles by the end of the year. In July, CEO David Michery had stated that 660 Class 1 vehicles would “leave the factory,” while 930 Class 3 vehicles would “leave the factory to customers” in 2023. The current guidance marks a stark decline from Michery’s prior guidance.
Mullen’s Class 1 vehicle carries a MSRP of $34,500, while the Class 3 vehicle starts at $68,500. Neither price reflects potential tax incentives.
Mullen has already delivered 10 Class 3 vehicles to RMA as part of its 1,000 vehicle purchase order worth $63 million. An additional 140 Class 3 vehicles are expected to be delivered this year, with the remaining 850 vehicles expected to be delivered in 2024. RMA has also placed a purchase order for 6,000 Class 1 vehicles worth $200 million. Mullen initiated Class 1 production on Nov. 1.
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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.
