Mullen Automotive, Inc. ( MULN ) shares are trading higher on Wednesday.

Today, the company announced the dispatch of the first batch of vehicles as part of a substantial $210 million contract with Volt Mobility, a UAE-based company.

Under this agreement, Mullen said it will start recognizing revenue in the first fiscal quarter beginning October 1, 2024. The contract involves Volt purchasing 3,000 Mullen Class 1 and Class 3 electric cargo vans and trucks over the next 16 months.

The initial shipment of these commercial EVs, which occurred on September 2, 2024, marks the beginning of this multi-vehicle deal.

The plan includes delivering 300 vehicles within the calendar year 2024. The contract includes an initial deposit of $3 million, as mentioned in the company’s announcement on August 26, 2024.

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Additional payments are expected as vehicles are delivered under the agreement. Volt plans to lease these vehicles to corporate clients in the Middle East and Gulf States.

Volt’s current clients, such as UPS, DHL, and FedEx, operate throughout the Gulf Cooperation Council region, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).

The vehicles for this order are being assembled at Mullen’s Commercial Vehicle Facility in Tunica, Mississippi, which has the capacity to produce 20,000 Class 1 and 6,000 Class 3 vehicles annually with two production shifts.

Mullen’s commercial electric vehicle lineup features the Mullen ONE Class 1 EV cargo van, the Mullen THREE Class 3 EV cab chassis truck, and the Bollinger B4 Class 4 and Bollinger B5 Class 5 EV cab chassis trucks, which are produced by its subsidiary, Bollinger Motors.

Production of the Bollinger B4 is set to start on September 16, 2024, with deliveries commencing in October 2024.

Price Action: MULN shares are trading higher by 12.7% to $0.2379 at last check Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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