Why Mullen Automotive Shares Are Rising After Agreement With Amazon Partner

Mullen Automotive Inc MULN shares are trading higher by 9.4% to $1.28 Monday morning after the company announced it has signed a binding agreement with DelPack Logistics, an Amazon.com, Inc AMZN Delivery service partner, to purchase up to 600 Mullen Class 2 EV cargo vans over the next 18 months.

Among the conditions to the binding agreement between Mullen and DPL, Mullen says includes the following:

• DPL will place a purchase order for up to 600 Mullen Class 2 Electric Cargo Vans over the next 18 months
• The 600 Class 2 EV Cargo Vans will be fully homologated for the United States 
• The first 300 fully homologated for the United States Mullen Class 2 EV Cargo Vans can be delivered to DPL by Nov. 30, 2022, at the request of DPL
• All Mullen Class 2 Electric Cargo Vans will be equipped with all airbags as required by United States standards and a cabin comfort package, including adjustable seats, cup holders, an infotainment system, and comfortable passenger seat. In addition, the Mullen Class 2 Electric Cargo Vans will carry a minimum of an 80 kilowatt per hour battery pack.

"This agreement is a milestone for Mullen Automotive," said David Michery, CEO and chairman of Mullen Automotive. "DelPack is a leader in last-mile package delivery and this agreement puts our Class 1 cargo van program front and center for last-mile delivery opportunities."

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According to data from Benzinga Pro, Mullen Automotive has a 52-week high of $15.90 and a 52-week low of $0.52.