Mullen Automotive to Launch Financing Subsidiary for Dealers and Customers
TL;DR
Mullen Automotive plans to establish Mullen Credit Corporation, offering financing options for dealers and customers, enhancing its market share.
Mullen Credit Corporation will provide vehicle floor planning, allowing dealers to finance inventory upfront and repay the loan plus interest once the vehicle is sold.
Mullen Credit Corporation's financing flexibility for dealers and customers will support accelerated growth, expand market share, and contribute to a sustainable future.
Mullen Automotive's expansion of its commercial dealer network and approval for federal EV tax credits offer exciting opportunities for the electric vehicle industry.
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Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle (EV) manufacturer, has announced plans to establish Mullen Credit Corporation (MCC) as a wholly owned subsidiary. This strategic move aims to support the company's growing dealership network and customer base with tailored financing solutions.
The new subsidiary will offer vehicle floor planning, enabling Mullen's dealerships to finance inventory upfront and repay the loan with interest upon vehicle sale. Additionally, MCC will provide attractive financing options for fleet and small business customers, enhancing accessibility to Mullen's electric vehicles.
David Michery, Chairman and CEO of Mullen Automotive, emphasized the importance of this development, stating, "Our business is experiencing rapid growth, with projected sales for 2025 expected to increase significantly. Consequently, our financing needs have also evolved." Michery added that MCC would provide financing flexibility for dealers and customers as the company pursues accelerated growth and expands its market share.
This announcement comes at a crucial time for Mullen Automotive, which has recently expanded its commercial dealer network to seven dealers and received approval for federal EV tax credits on its commercial vehicles. The company's Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are now California Air Resource Board (CARB) and EPA certified and available for sale in the U.S.
The establishment of Mullen Credit Corporation signifies a strategic move to strengthen Mullen's position in the competitive EV market. By offering financing solutions, the company aims to remove barriers to EV adoption and facilitate the growth of its dealership network. This initiative could potentially accelerate Mullen's market penetration and support its ambitious sales projections for 2025.
As the EV industry continues to evolve rapidly, Mullen's decision to create a dedicated financing arm demonstrates its commitment to addressing the unique challenges faced by EV manufacturers and dealers. The success of this venture could have significant implications for Mullen's growth trajectory and its ability to compete with established players in the automotive industry.
Curated from InvestorBrandNetwork (IBN)
