Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer, has secured a substantial contract worth approximately $210 million with Volt Mobility, a prominent UAE-based commercial leasing company. This agreement entails the acquisition of 3,000 Class 1 and Class 3 EV cargo vans and trucks over a 16-month period.
Under the terms of the contract, Mullen will receive an initial $3 million deposit within the next 60 days, followed by additional payments as the vehicles are delivered. The company plans to commence shipping the first batch of EVs immediately, and it anticipates recognizing approximately $210 million in revenue throughout the duration of this agreement.
Volt Mobility intends to lease these electric vehicles to its corporate clients across the Middle East and the Gulf Cooperation Council (GCC) region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. This strategic move aligns with Volt's mission to revolutionize transportation in the region.
David Michery, CEO and chairman of Mullen Automotive, stated, "Volt is reshaping the way people and businesses move across the UAE and GCC. 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."
This agreement is a significant milestone for Mullen, offering the company a foothold in the lucrative Middle Eastern market. It not only promises a substantial revenue boost but also enhances Mullen's visibility and potential for future growth in a region that is increasingly embracing sustainable transportation solutions.
