Bollinger Motors Secures $10M Funding to Accelerate B4 Electric Truck Production

In a significant development for the electric vehicle (EV) industry, Mullen Automotive (NASDAQ: MULN) has announced that Robert Bollinger, founder of Bollinger Motors, has provided $10 million in non-dilutive debt financing to accelerate the production and sales of Bollinger's all-electric Class 4 B4 truck. This investment marks a crucial step forward in the commercialization of heavy-duty electric vehicles and underscores the growing confidence in the EV market's potential.

The funding is set to support Bollinger's full-scale production efforts, with trucks now being assembled by Roush Industries in Michigan. Notably, over 70% of the components used in these vehicles are made in the United States, highlighting a commitment to domestic manufacturing and potentially boosting local economies. This move aligns with broader industry trends towards reshoring and strengthening supply chains within the country.

Mullen Automotive's CEO, David Michery, has expressed enthusiasm for Bollinger's continued commitment to building the brand. The company plans to file more details on the financing in an upcoming Form 8-K with the Securities and Exchange Commission (SEC), which will provide investors and industry analysts with deeper insights into the terms and implications of this funding.

This development is particularly significant in the context of Mullen Automotive's recent progress in the EV sector. The company has been rapidly expanding its commercial vehicle lineup and production capabilities. In August 2023, Mullen began commercial vehicle production at its Tunica, Mississippi plant, and in September, it received IRS approval for federal EV tax credits on its commercial vehicles, offering eligible customers up to $7,500 per vehicle.

The company's product range now includes the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck, both of which are California Air Resource Board (CARB) and EPA certified. The CARB-issued HVIP approval on the Mullen THREE provides up to a $45,000 cash voucher at the time of vehicle purchase, further incentivizing the adoption of electric commercial vehicles.

Mullen has also been expanding its commercial dealer network, which now includes seven dealers across key markets in the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions. This expansion is crucial for increasing the accessibility and serviceability of Mullen's electric vehicles, potentially accelerating market penetration.

The $10 million investment in Bollinger Motors' B4 truck production is likely to have ripple effects throughout the commercial EV industry. It demonstrates growing investor confidence in the viability of electric trucks for commercial applications and could encourage further investments in this sector. As production scales up, it may lead to economies of scale that could eventually bring down the costs of electric commercial vehicles, making them more competitive with traditional diesel-powered trucks.

Moreover, the emphasis on using U.S.-made components aligns with current political and economic priorities, potentially positioning Mullen and Bollinger to benefit from government initiatives aimed at boosting domestic manufacturing and reducing dependence on foreign supply chains.

As the EV market continues to evolve, developments like this funding announcement signal a maturing industry that is attracting serious investment and moving towards mass production of electric commercial vehicles. This trend could have far-reaching implications for transportation, logistics, and environmental sustainability, potentially reshaping the future of commercial fleets across the United States and beyond.