Mullen Automotive has announced plans to create Mullen Credit Corporation as a wholly owned subsidiary to support the company's expanding dealership network and customer base with tailored financing solutions. The establishment of MCC will introduce vehicle floor planning, enabling Mullen's growing network of dealers to finance their inventory upfront and repay loans once vehicles are sold. Additionally, MCC will extend attractive financing options to fleet and small business customers, enhancing Mullen's market competitiveness.
David Michery, Chairman and CEO of Mullen Automotive, emphasized the importance of this development in light of the company's rapid growth trajectory. Our business is experiencing rapid growth, with projected sales for 2025 expected to increase significantly. Consequently, our financing needs have also evolved, Michery stated. He added that MCC will provide the necessary financing flexibility for dealers and customers as Mullen pursues accelerated growth and market share expansion.
This initiative comes at a critical time for Mullen Automotive, which has been making significant strides in the EV industry. The company operates two U.S.-based vehicle plants: a 120,000-square-foot facility in Tunica, Mississippi, and a 650,000-square-foot plant in Mishawaka, Indiana. Mullen began commercial vehicle production in Tunica in August 2023, marking a major milestone in its manufacturing capabilities. Further bolstering its market position, Mullen received IRS approval for federal EV tax credits on its commercial vehicles in September 2023. This Qualified Manufacturer designation offers eligible customers up to $7,500 per vehicle, enhancing the attractiveness of Mullen's products in the competitive EV market.
As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, have received California Air Resource Board and EPA certification, making them available for sale in the United States. The CARB-issued HVIP approval for the Mullen THREE provides an additional incentive, offering up to a $45,000 cash voucher at the time of vehicle purchase. Mullen has also been expanding its commercial dealer network, which now includes seven dealers across key U.S. markets. This expansion, coupled with the company's Foreign Trade Zone status approval for its Tunica manufacturing center, positions Mullen for significant growth in the EV sector.
The creation of Mullen Credit Corporation represents a strategic move to align the company's financial services with its manufacturing and sales growth. By offering tailored financing solutions, Mullen aims to remove barriers to EV adoption for both dealers and end customers, potentially accelerating the transition to electric vehicles in commercial and fleet applications. As the EV market continues to evolve rapidly, Mullen's integrated approach to manufacturing, sales, and now financing could provide a competitive edge. The success of MCC could have far-reaching implications for Mullen's market penetration and long-term sustainability in the increasingly crowded EV landscape.
