PORTLAND - In a strategic move, Bollinger Motors, a subsidiary of Mullen Automotive Inc. (NASDAQ:), has teamed up with TEC Equipment Inc. to distribute its commercial electric vehicles (EVs) across key Western U.S. markets. TEC Equipment, a prominent truck and trailer dealership, will be adding 20 new locations to Bollinger Motors' commercial EV dealer network, strengthening the company's presence along the Interstate 5 corridor through California, Oregon, and Washington.
This expansion into Arizona, California, Iowa, Nebraska, Nevada, Oregon, South Dakota, and Washington signifies a major step forward for Bollinger Motors, with TEC Equipment bringing extensive industry experience in sales and service to the table. The partnership with TEC Equipment, known for their franchises including Volvo (OTC:), Mack Trucks, and Wabash Trailers, positions Bollinger Motors as a significant player in the region's commercial vehicle market.
Jim Connelly, chief revenue officer for Bollinger Motors, highlighted the importance of this collaboration, citing TEC's reputation as an industry leader and their shared commitment to electrification and customer support. Chris Thompson, vice president of truck sales at TEC Equipment, expressed enthusiasm in introducing Bollinger's electric trucks to West Coast customers, emphasizing the innovative features of the Bollinger B4 Chassis Cab.
The Bollinger B4 Chassis Cab, a Class 4 commercial truck, has been designed in consultation with fleets and upfitters, boasting a unique chassis design and a 185-mile range to meet the demands of the commercial market. Bollinger Motors has recently achieved several milestones, including production plans, environmental certifications, sales to various groups, as well as partnerships for battery supply, vehicle assembly, warranty administration, and mobile service provision.
Established in 2015 and headquartered in Oak Park, Michigan, Bollinger Motors became a majority-owned subsidiary of Mullen Automotive in September 2022. Mullen, based in Southern California, is making strides in the commercial EV sector with vehicle plants in Mississippi and Indiana, along with securing federal EV tax credits and California Air Resource Board certification for its vehicles.
Looking at recent developments, Mullen Automotive has inked a $210 million deal with Volt Mobility, a UAE-based commercial leasing company, to supply 3,000 EV cargo vans and trucks over the next 16 months. Bollinger Motors, a subsidiary of Mullen Automotive, is gearing up to commence production of the Bollinger B4, a Class 4 electric commercial truck, on September 16, 2024, with deliveries slated to begin in October 2024.
Furthermore, Mullen Automotive has made inroads into the higher education sector by selling a Mullen THREE truck to Princeton University and expanding its dealership network through commitments from Eco Auto in the Boston area to purchase 180 vehicles. The company has also secured new financing commitments totaling $250 million to fuel its growth.
For investors, it's crucial to consider the financial metrics and market performance of Mullen Automotive Inc. (NASDAQ:MULN) in light of Bollinger Motors' expansion through TEC Equipment's dealership network. According to InvestingPro data, Mullen Automotive's market capitalization stands at 10.98 million USD, with a Price / Book ratio of 0.31, indicating potential undervaluation relative to assets.
However, challenges lie in Mullen Automotive's financials, with revenue of 0.16 million USD for the last twelve months showing a significant decline of 49.17% and a deeply negative gross profit margin of -1364.48%. This underscores the company's weak financial position, which investors should take into account.
InvestingPro Tips also caution about the company's ability to make interest payments on its debt and highlight the stock's high price volatility. Investors seeking a comprehensive analysis can access 18 tips on InvestingPro's platform, covering cash burn, short-term obligations, and insights into Mullen Automotive's financial health, stock performance, and industry positioning.
Ultimately, the partnership between Bollinger Motors and TEC Equipment signifies a significant step in expanding the commercial EV market in the Western United States. As companies like Mullen Automotive aim to capitalize on the growing demand for electric vehicles, investors must weigh the opportunities and risks presented by these developments in shaping their investment decisions.