Why Is Mullen Automotive Stock Skyrocketing Today?

Shares of EV manufacturer Mullen Automotive, Inc. MULN are skyrocketing on Wednesday.

The company’s fully electric commercial vehicles are included in the National Auto Fleet Group’s (NAFG) Sourcewell contract.

Mullen Automotive’s collaboration with National Auto Fleet Group makes its commercial EVs accessible to government agencies and educational institutions.

This approval enables public sector organizations to skip lengthy bidding procedures and directly procure Mullen EVs through NAFG, starting immediately.

“The addition of Mullen products to Sourcewell is a major benefit to our municipal customers as it streamlines the purchasing process allowing them to acquire our EVs, avoid an extensive contractual process and significantly reduces their time to acquisition,” said CEO David Michery.

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Furthermore, the Mullen THREE Class 3 truck is eligible for a cash voucher of up to $45,000 under the California Air Resources Board's HVIP program, which is further enhanced by a federal tax credit of up to $7,500.

National Auto Fleet Group provides fleet vehicle purchasing services to public sector clients, such as state and local governments.

Through its agreements with Sourcewell, a government organization, the company facilitates access to the Mullen ONE and Mullen THREE EVs.

Government agencies can take advantage of available vouchers and federal tax credits, allowing them to acquire these EVs at a significantly reduced cost, with the Mullen THREE potentially priced as low as $17,000.

On Feb. 1, Mullen implemented new cost-saving strategies, cutting its workforce and personnel expenses by around $13 million per year. These steps are designed to lower annual cash outflows and enhance overall financial efficiency.

Price Action: Mullen Automotive shares are trading higher by 81% at $4.27 at last check Wednesday.

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