Mullen Automotive to Launch Financing Subsidiary to Support Dealership Network and Customers

Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer, has announced plans to create a wholly owned subsidiary called Mullen Credit Corporation (MCC). This strategic move aims to provide crucial financial support for the company's expanding dealership network and customer base, potentially catalyzing Mullen's growth in the competitive EV market.

The establishment of MCC represents a significant step for Mullen Automotive as it seeks to strengthen its position in the rapidly evolving electric vehicle industry. The new subsidiary will offer vehicle floor planning, a financing option that allows dealerships to purchase inventory upfront and repay the loan with interest after selling the vehicles. This financial mechanism is expected to empower Mullen's growing network of dealers to maintain robust inventories without tying up their own capital.

In addition to supporting dealers, MCC will extend financing options to fleet operators and small businesses, potentially removing barriers to EV adoption for these important market segments. By offering attractive financing solutions, Mullen aims to make its electric vehicles more accessible to a broader range of customers, which could drive sales and market penetration.

David Michery, Chairman and CEO of Mullen Automotive, emphasized the importance of this move in light of the company's projected growth. "Our business is experiencing rapid growth, with projected sales for 2025 expected to increase significantly. Consequently, our financing needs have also evolved," Michery stated. He added that MCC will provide financing flexibility for dealers and customers as the company pursues accelerated growth and expands its market share.

The creation of MCC comes at a critical time for Mullen Automotive. The company has recently begun commercial vehicle production at its Tunica, Mississippi plant and has received IRS approval for federal EV tax credits on its commercial vehicles. With both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, now certified by the California Air Resource Board (CARB) and EPA, Mullen is poised for significant market expansion.

The company's recent expansion of its commercial dealer network to seven dealers, including the addition of Papé Kenworth, further underscores the need for robust financing options. These dealerships, spread across key markets in the Midwest, West Coast, Pacific Northwest, New England, and Mid-Atlantic regions, will likely benefit from the financial support provided by MCC.

The establishment of MCC could have far-reaching implications for Mullen Automotive and the broader EV industry. By addressing the financing needs of both dealers and end customers, Mullen is positioning itself to overcome one of the significant hurdles in EV adoption – the higher upfront costs associated with electric vehicles. If successful, this strategy could accelerate the transition to electric vehicles in the commercial sector, contributing to reduced emissions and promoting sustainable transportation solutions.

As the electric vehicle market continues to grow and evolve, innovative financing solutions like those proposed by Mullen Credit Corporation may become increasingly important. The success of MCC could serve as a model for other EV manufacturers looking to support their dealership networks and expand their customer base, potentially reshaping the landscape of EV financing and adoption in the coming years.