Mullen Automotive Expands Dealership Network with Papé Kenworth Partnership

Mullen Automotive (NASDAQ: MULN), an emerging player in the electric vehicle (EV) manufacturing sector, has announced a strategic partnership with Papé Kenworth, a leading full-service dealer in the Western United States. This collaboration marks Mullen's seventh franchise dealer partnership, signaling a significant expansion of its distribution network for commercial electric vehicles.

Papé Kenworth, part of the larger Papé Group, brings considerable industry experience to the table with over 30 locations across the West. As a premier Kenworth truck dealer, their partnership with Mullen Automotive is poised to play a crucial role in the distribution of zero-emissions trucks for a variety of commercial applications. This move comes at a time when many businesses are adapting to comply with evolving environmental regulations, making the transition to electric vehicles increasingly important.

The significance of this partnership extends beyond mere distribution. It represents a strategic alignment between a nascent EV manufacturer and an established player in the commercial vehicle sector. Mullen Automotive's CEO and chair, David Michery, highlighted the importance of Papé Kenworth's extensive reach and expertise in the commercial vehicle industry, emphasizing how this collaboration will be instrumental in introducing Mullen's commercial EVs to a broader market.

This development is particularly noteworthy given Mullen Automotive's recent progress in the EV sector. The company began commercial vehicle production at its Tunica, Mississippi plant in August 2023 and has since received IRS approval for federal EV tax credits on its commercial vehicles. 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 eligible for sale in the United States.

Furthermore, the recent approval from CARB's Hybrid and Zero-Emissions Truck and Bus Voucher Incentive Project (HVIP) for the Mullen Three provides up to a $45,000 cash voucher at the time of vehicle purchase, making Mullen's offerings even more attractive to potential customers. The company has also expanded its commercial dealer network with other notable partnerships and received Foreign Trade Zone (FTZ) status approval for its Mississippi manufacturing center, which offers benefits such as deferment of duties owed and elimination of duties on exported vehicles.

The partnership with Papé Kenworth is likely to accelerate Mullen's market penetration, particularly in the West Coast and Pacific Northwest regions where Papé has a strong presence. This collaboration could potentially lead to increased sales and visibility for Mullen's electric commercial vehicles, helping the company to establish a stronger foothold in the competitive EV market.

As the automotive industry continues its shift towards electrification, partnerships like this one between Mullen Automotive and Papé Kenworth are becoming increasingly critical. They not only facilitate the distribution of electric vehicles but also play a vital role in building the infrastructure and support systems necessary for widespread EV adoption in the commercial sector. This collaboration represents a significant step forward in making zero-emission commercial vehicles more accessible to businesses across the Western United States, potentially accelerating the transition to sustainable transportation in the region.