Key points:
- The Mullen Automotive stock price rallied 18%, extending yesterday’s rally.
- Investors cheered the firm securing the I-Go branding and sales rights.
- However, it remains to be seen whether the deal shall pay off long term.
The Mullen Automotive Inc (NASDAQ: MULN) stock price rallied 18%, extending yesterday’s 32.94% rally triggered by news that the company had won the sales, distribution and branding rights for a new compact urban delivery EV, known as the I-GO.
The I-GO is certified for sale in European markets and is an EU-standard homologated vehicle. The company noted that the I-GO was ready to meet the rising demand for urban delivery electric vehicles across Europe.
Also read: The Best Electric Car Stocks To Buy.
Therefore, Mullen Automotive saw an opportunity to extend its branding and marketing reach into the European market by partnering with the company that manufactures the I-GO, which will now be renamed the Mullen I-GO. The delivery van will be primarily marketed to last-mile delivery companies.
The I-Go specifications include a 96-inch wheelbase, rear-wheel drive operation, 16.5-kWh battery pack and a curb weight of 1,753 lbs. The electric van has a range of 124 miles, according to estimates from NEDC, and can easily handle the stop/go and weave in/out of the narrow streets that characterise most European urban areas.
David Michery, Mullen Automotive’s Chairman and CEO, said: “Securing the exclusive sales, distribution and branding rights in major European countries for a ready-to-market electric commercial delivery vehicle is a huge win for the company. The company plans on licensing its rights to established dealerships in these desirable European markets.”
Adding:
“Essentially, this transaction provides the Company revenue-generating opportunities, promotes and extends the Company’s brand into other countries while at the same time allowing the Company to remain fully focused on its mission of manufacturing its lineup of electric vehicles in the USA.”
Despite securing the I-Go rights, Mullen is still fully committed to manufacturing its EV lineup in the United States, with the ultimate goal of building a complete lineup of commercial electric vehicles.
Investors cheered the announcement, hence, today’s and yesterday’s rallies. However, it remains to be seen whether the deal shall be as lucrative as expected.
*This is not investment advice.
The Mullen Auto (MULN) stock price.
The Mullen Automotive (MULN) stock price rallied 18.00% to trade at $0.59, rising from Monday’s closing price of $0.50.