Thursday, April 25, 2024
Dividend Stocks

Mullen (MULN) Stock Gains 10% After Announcing U.S. Commercial Partner

Source: Ringo Chiu / Shutterstock

Shares of Mullen Automotive (NASDAQ:MULN) are accelerating higher after the electric vehicle (EV) company announced it had signed a commercial partner deal with Randy Marion Automotive (RMA), its first U.S. commercial dealer partner. RMA will act as a dealer that offers sales, service and parts for Mullen’s commercial portfolio of Class 1 through Class 6 EV cargo vans and trucks. The company’s commercial portfolio includes Class 1 through Class 3 cargo vans and Bollinger Motors’ Class 4 through Class 6 chassis products. Mullen did not address the purchase terms of the deal in the press release. MULN stock is up 5% on the news.

In the press release, Mullen characterized RMA as “one of the largest and most respected commercial dealer groups in the U.S.” RMA Founder and CEO Randy Marion added:

“We are impressed with Mullen Automotive’s EV lineup, their speed to market and, most notably, their focus on an underserved commercial market for EV vehicles. This is especially obvious when you consider what has taken place in the Class 1 light cargo van category. OEMs have all exited from the commercial class 1 van segment, leaving the door wide open for Mullen’s EV lineup.”

MULN Stock: Mullen Signs RMA as a Commercial Partner

RMA operates as one of the largest car dealerships in the Carolinas that sells both used and new vehicles. Its website shows that it operates 12 dealerships across both states.

While RMA will become Mullen’s first U.S. commercial partner, it isn’t Mullen’s first overall commercial partner. In November, the company announced it had signed a deal with Ireland’s Newgate Motor. Newgate will be act as the servicing agent for the I-GO EV in Ireland and the United Kingdom and will also be in charge of marketing, sales and distribution.

Mullen stated it would also enter into a dealer agreement with Newgate. The agreement will cover the terms in which Newgate will purchase 500 vehicles per year and the initial I-GOs for testing and demonstration. Mullen expects Newgate to receive the first shipment of I-GOs on Dec. 20, which is exactly a week away from today. The company did not specify whether the first shipment would be I-GOs for testing or for sale, so investors could expect these vehicles will be used for testing.

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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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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