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Bollinger Motors secures repeat order for electric trucks

Published 04/12/2024, 01:26 am
MULN
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OAK PARK, Mich. - Bollinger Motors, a subsidiary of Mullen Automotive Inc. (NASDAQ: NASDAQ:MULN), has received a follow-on order for seven Bollinger B4 all-electric trucks from TEC Equipment. The payment for this order was completed electronically, allowing immediate revenue recognition within the current quarter ending December 2024. According to InvestingPro data, Mullen reported revenue of just $0.16M in the last twelve months, making this order significant for the company's growth trajectory.

This transaction marks the second order from TEC Equipment, which initially purchased three B4 trucks on October 30, 2024. The latest fleet of B4 trucks will be distributed among TEC dealer locations in California, Oregon, and Washington. With a market capitalization of $22.33M and an EBITDA of -$267.71M, these orders are crucial for Mullen's financial development.

TEC Equipment, established in 1976, operates as a full-service truck and trailer dealership with over 30 locations across eight states. Its services range from sales to financing and consulting, with a focus on zero-emission vehicle (ZEV) solutions.

Jim Connelly, chief revenue officer at Bollinger Motors, expressed confidence in the partnership's growth, highlighting the mutual commitment to providing innovative vehicle solutions that benefit customers' operations and communities.

The Bollinger B4 is a Class 4 commercial truck designed with input from fleets and upfitters. It features a unique chassis design that safeguards its 158-kilowatt-hour battery pack, contributing to its capability and safety. With a 185-mile range and a payload capacity of 7,394 pounds, the B4 truck is positioned as a versatile option for commercial fleets.

Bollinger Motors has achieved several milestones recently, including production launches, regulatory compliance, and expanding its dealer and service network. Additionally, the company has established partnerships for battery supply, warranty administration, and mobile service.

The Bollinger B4 is eligible for federal clean vehicle tax credits under the Inflation Reduction Act, amounting to $40,000 per vehicle, and may also qualify for additional state incentives.

This press release statement highlights Bollinger Motors' ongoing efforts to expand its presence in the electric commercial vehicle market and its continued relationship with TEC Equipment. InvestingPro analysis reveals several challenges for Mullen, including a weak financial health score and a current ratio of 0.53, indicating potential liquidity concerns. Investors can access 12 additional exclusive ProTips and comprehensive financial metrics through an InvestingPro subscription to better evaluate the company's growth prospects.

In other recent news, Mullen Automotive has been making significant strides in the electric vehicle market. The company has partnered with Emerald Transportation Solutions to develop a refrigerated upfit for the Mullen THREE, a Class 3 all-electric truck. Mullen has also collaborated with the National Auto Fleet Group to distribute its Bollinger B4 electric commercial trucks to government agencies.

The Mullen ONE, the company's Class 1 EV cargo van, is now available for rental on Turo, a car-sharing marketplace, as part of a pilot program in Jacksonville, Florida. Bollinger Motors, a subsidiary of Mullen Automotive, has delivered three Bollinger B4 electric trucks to TEC Equipment, marking a significant step in establishing its presence on the West Coast.

In financial developments, Mullen Automotive has received $10 million in debt financing from Robert Bollinger, the founder of Bollinger Motors, to accelerate the production and distribution of the Bollinger B4. The company has also settled approximately $4.5 million in secured promissory notes through the issuance of 340,000 shares of its common stock.

Mullen Automotive has expanded its commercial dealer network by adding Papé Kenworth and has secured substantial orders from Papé Kenworth and Volt Mobility, totaling $3.2 million and $210 million respectively. These recent developments mark Mullen Automotive's successful transition from pre-revenue product development to revenue generation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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