Mullen Automotive has secured an order for 10 Class 3 EV cab chassis trucks from Associated Coffee, a distributor in the San Francisco Bay Area, marking a significant advancement in commercial electric vehicle adoption. This transaction, completed through Mullen's authorized dealer Papé Group, reflects Associated Coffee's commitment to sustainability and reducing its carbon footprint while addressing the practical needs of urban last-mile delivery operations. The Class 3 Mullen THREE trucks are specifically engineered for urban environments where emissions reduction and operational efficiency are increasingly prioritized.
The timing of this order coincides with Mullen's expanding commercial vehicle production capabilities, which began at its Tunica, Mississippi plant in August 2023. Both the Mullen ONE and Mullen THREE models have achieved California Air Resource Board and EPA certification, making them available for sale across the United States. This regulatory approval is particularly significant given the growing stringency of environmental regulations affecting commercial transportation sectors. The vehicles offer companies a dual advantage of environmental sustainability and potential cost savings, with up to $52,500 available in rebates and tax credits for eligible customers.
Financial incentives play a crucial role in accelerating commercial EV adoption, with the CARB-issued HVIP approval for the Mullen THREE providing up to a $45,000 cash voucher at the time of vehicle purchase. These financial benefits, combined with reduced operational costs associated with electric vehicles compared to traditional combustion engines, create a compelling economic case for fleet transition. The company's strategic expansion of its commercial dealer network, now including seven dealers covering key markets, ensures that customers like Associated Coffee receive necessary sales and service support throughout vehicle ownership.
Mullen's recent acquisition of Foreign Trade Zone status for its Tunica manufacturing center further strengthens its competitive position by offering benefits such as duty deferment and elimination of duties on exported vehicles. This development enhances Mullen's ability to compete in both domestic and international markets while potentially reducing overall vehicle costs. As urban areas increasingly prioritize sustainable transportation solutions to address air quality concerns, commercial EVs like those offered by Mullen present viable alternatives to traditional delivery vehicles.
The broader implications of this order extend beyond the immediate transaction, potentially accelerating the transition to electric vehicles in commercial fleets across multiple sectors. As businesses recognize the combined environmental and economic advantages of EVs, manufacturers with certified, commercially viable products stand to benefit from growing market demand. This development contributes to ongoing efforts to reduce carbon emissions in urban environments while demonstrating the practical application of electric vehicles in commercial operations that require reliable, cost-effective transportation solutions.
