Bollinger Motors expands dealer network in the West By Investing.com

PORTLAND – Bollinger Motors, an electric vehicle manufacturer under Mullen Automotive Inc. (NASDAQ:), has partnered with TEC Equipment Inc. to distribute its commercial electric vehicles (EVs) across key Western U.S. markets. TEC Equipment, a truck and trailer dealership, will add 20 locations to Bollinger Motors’ commercial EV dealer network, enhancing the company’s presence along the Interstate 5 corridor through California, Oregon, and Washington.

The new dealer locations in Arizona, California, Iowa, Nebraska, Nevada, Oregon, South Dakota, and Washington mark a significant expansion for Bollinger Motors, with TEC Equipment bringing a wealth of industry experience in sales and service. TEC’s existing franchises include Volvo (OTC:), Mack Trucks, and Wabash Trailers, positioning them as an influential player in the region’s commercial vehicle market.

Jim Connelly, chief revenue officer for Bollinger Motors, emphasized the strategic importance of this expansion, noting TEC’s reputation as an industry leader and its alignment with Bollinger’s commitment to electrification and customer support. Chris Thompson, TEC Equipment’s vice president of truck sales, expressed pride in bringing Bollinger’s electric trucks to West Coast customers, highlighting the innovative nature of the Bollinger B4 Chassis Cab.

The Bollinger B4 Chassis Cab, a Class 4 commercial truck, is designed with input from fleets and upfitters, featuring a unique chassis design and a 185-mile range to meet commercial market demands. Bollinger Motors has achieved several milestones recently, including production plans, environmental certifications, sales to various groups, and partnerships for battery supply, vehicle assembly, warranty administration, and mobile service provision.

Founded 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 expanding its footprint in the commercial EV sector with vehicle plants in Mississippi and Indiana and has recently received federal EV tax credits and California Air Resource Board certification for its vehicles.

This announcement is based on a press release statement from the company and does not endorse any claims. It provides a factual report on Bollinger Motors’ dealership expansion and its implications for the commercial electric vehicle market in the Western United States.

In other recent news, Mullen Automotive has made significant strides in the electric vehicle market. The company 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. Mullen Automotive’s subsidiary, Bollinger Motors, is set to start production of the Bollinger B4, a Class 4 electric commercial truck, on September 16, 2024, with deliveries expected to begin in October 2024.

The company also sold a Mullen THREE truck to Princeton University, marking a growing presence in the higher education sector. Mullen Automotive has expanded its dealership network through its Boston-area dealer, Eco Auto, which committed to purchasing 180 vehicles. The company has secured new financing commitments of $250 million, which will fuel its growth.

Bollinger Motors has qualified for federal clean vehicle tax credits under the Inflation Reduction Act, offering a $40,000 incentive per B4 chassis cab vehicle. Mullen Automotive has completed a delivery of their Mullen ONE, Class 1 EV cargo vans to the University of Virginia, further expanding its reach in the higher education sector. These are recent developments in Mullen Automotive’s operations.

InvestingPro Insights

In light of Bollinger Motors’ expansion through TEC Equipment’s dealership network, it’s pertinent to consider the financial health and market performance of Mullen Automotive Inc. (NASDAQ:MULN). According to InvestingPro data, Mullen Automotive has a market capitalization of 10.98 million USD. The company’s Price / Book ratio, as of the last twelve months leading up to Q3 2024, stands at 0.31, suggesting that the stock is trading at a low multiple of its book value. This could indicate that the stock is potentially undervalued relative to its assets, aligning with one of the InvestingPro Tips that suggests the stock is trading at a low Price / Book multiple.

However, Mullen Automotive’s financials also reveal significant challenges. The company’s revenue for the same period was 0.16 million USD, with a stark revenue decline of 49.17%. The gross profit margin was deeply negative at -1364.48%, reflecting costs that far exceed revenues, which corroborates another InvestingPro Tip that highlights the company’s weak gross profit margins.

InvestingPro Tips for Mullen Automotive also include a caution regarding the company’s ability to make interest payments on its debt and a note on the stock’s high price volatility. These insights are crucial for investors considering the company’s stock, especially as Mullen aims to scale up operations and capitalize on the growing commercial EV market.

For a deeper dive into Mullen Automotive’s financials and for additional InvestingPro Tips, including the company’s cash burn and short-term obligations, investors can refer to the full list of 18 tips available on InvestingPro’s platform at https://www.investing.com/pro/MULN. These tips offer valuable perspectives on the company’s financial health, stock performance, and industry positioning, which may influence investment decisions in the context of Bollinger Motors’ strategic dealership expansion.

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