What’s Happening
Mullen Automotive, an emerging electric vehicle (EV) manufacturer, has signed a vehicle purchase agreement with national fleet leasing provider MGT Lease Company. The deal, valued at $15,755,000, is for the purchase of 250 all-electric commercial class 3 cab chassis EV trucks. The vehicles are scheduled for delivery starting August 2023, with complete fulfillment of the purchase agreement set for December 2023. The order will be fulfilled through Randy Marion Automotive Group, a distributor of Mullen’s commercial EVs.
Why It Matters
MGT Lease is a growing commercial vehicle sales and leasing firm based in North Carolina, boasting annual revenue of over $70 million in 2022, and projected revenue of $100 million for 2023. The company’s primary customer base focuses on last-mile segments such as package delivery and retail, and vocations like plumbing and electrical. By adding Mullen’s all-electric Class 3 EV cab chassis truck, the Mullen THREE, to its short- and long-term fleet leasing portfolio, MGT is catering to the increasing demand for eco-friendly commercial vehicles among small, medium, and enterprise businesses.
Key Points
MGT is a repeat customer of Mullen Automotive, initially purchasing EV cargo vans from the company in March 2023. The new order of 250 larger class 3 cab chassis EV trucks demonstrates the demand for premium commercial trucks. This deal follows Randy Marion’s initial order of 1,000 units placed in early May 2023.
Greg Striker, partner at MGT Lease Co., said, “We are very happy with the Mullen EV cargo van and have received great customer feedback and are now looking forward to expanding into Mullen’s commercial class 3 truck.”
John Schwegman, Chief Commercial Officer of Mullen Automotive, commented on the deal’s significance, stating, “Momentum continues following last week’s pricing announcement for our Class 3 all-electric cab chassis truck. We are excited to begin delivering trucks to MGT Leasing this summer as they continue to scale up their business.”
Bottom Line
Mullen Automotive’s agreement with MGT Lease enables the latter to offer its fleet customers a competitive commercial EV vehicle offering, including both the EV cargo van and the larger Class 3 EV truck. The deal signals growing interest and demand for electric commercial vehicles, as businesses increasingly recognize the benefits of transitioning to sustainable transportation solutions.
