Mullen Automotive Secures $210 Million Contract with UAE's Volt Mobility for EV Fleet

Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer based in Southern California, has announced a landmark agreement with Volt Mobility, a leading commercial leasing company in the United Arab Emirates (UAE). The contract, valued at approximately $210 million, involves the purchase of 3,000 Class 1 and Class 3 EV cargo vans and trucks over a 16-month period.

This deal represents a significant milestone for Mullen, providing the company with substantial exposure to the Middle Eastern market and potentially reshaping transportation in the region. Volt Mobility plans to lease these vehicles to its corporate clients across the UAE and the Gulf Cooperation Council (GCC) region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

Under the terms of the agreement, Mullen will receive an initial $3 million deposit within 60 days, followed by additional payments as vehicles are delivered. The company has already begun shipping the first vehicles and expects to recognize approximately $210 million in revenue over the course of the 16-month agreement.

David Michery, CEO and chairman of Mullen Automotive, expressed enthusiasm about the deal, stating, "This landmark agreement provides Mullen with exposure to local global transportation companies and the opportunity for utilizing Mullen EVs across the UAE and other areas of the Middle East." The partnership with Volt Mobility is poised to accelerate the adoption of electric vehicles in a region historically dependent on fossil fuels.

This contract comes at a crucial time for Mullen, which began commercial vehicle production at its Tunica, Mississippi plant in August 2023. The company's recent achievements include receiving IRS approval for federal EV tax credits on its commercial vehicles, offering eligible customers up to $7,500 per vehicle. Additionally, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, have received California Air Resource Board (CARB) and EPA certification, making them available for sale in the United States.

The expansion into the Middle Eastern market through this agreement with Volt Mobility could serve as a catalyst for Mullen's growth and establish the company as a significant player in the global EV industry. As countries in the GCC region increasingly focus on diversifying their economies and reducing carbon emissions, the demand for electric vehicles is expected to rise, potentially creating more opportunities for companies like Mullen.

This deal also highlights the growing international interest in electric commercial vehicles, a sector that is crucial for reducing emissions in urban areas and long-haul transportation. As more companies and governments worldwide commit to sustainability goals, the market for electric vans and trucks is likely to expand rapidly.

For investors and industry observers, this agreement signals Mullen's ability to secure large-scale contracts and expand its market reach beyond the United States. It also demonstrates the company's readiness to meet the demands of international clients, potentially opening doors to further global partnerships.

As Mullen Automotive begins fulfilling this substantial order, the company's performance in executing the contract will be closely watched by both the automotive industry and financial markets. Success in this venture could position Mullen as a key player in the global transition to electric commercial vehicles and solidify its standing in the competitive EV manufacturing landscape.