Mullen stock soars after EV maker’s deal with Amazon delivery partner

According to the Environmental Protection Agency, transportation and logistics contribute more than a quarter of all U.S. greenhouse gas emissions. And as the White House pushes for aggressive electrification targets, carriers are scrambling to add EVs to their fleets.

You can count Amazon (NASDAQ: AMZN) as the latest to make a big move. On Monday, EV maker Mullen Automotive (NASDAQ: MULN) announced an agreement with Amazon Delivery Service Partner DelPack Logistics to deliver up to 600 electric cargo vans over the next 18 months.

Mullen stock was up about 5% during midday trading after jumping more than 15% premarket.

Watch: Gain a strategic advantage through self-driving truck partnerships

“This agreement is a milestone for Mullen Automotive,” said David Michery, CEO and chairman of Mullen. “DelPack is a leader in last-mile package delivery and this agreement puts our Class 1 cargo van program front and center for last-mile delivery opportunities.”

Under the agreement, DelPack will place a purchase order for up to 600 electric Class 2 cargo vans within the next 18 months. The first 300 vans can be delivered to DelPack by Nov. 30, and all sales must be completed within the U.S.

The vans themselves resemble traditional gas-powered vans, with airbags, adjustable seats, cupholders and an infotainment system. They are capable of carrying nearly 3,300 pounds of payload over a range of 200-plus miles between charges.

Related:

Read: Mullen Group gets lift from freight market, acquisitions in Q2

Read: Mullen Group buys Manitoba carrier as acquisition run continues

“DelPack is excited about an opportunity to take part and participate in a global green and sustainable initiative,” said Eugene Goldberg, a partner at DelPack.

In 2019, Amazon CEO Jeff Bezos revealed ambitious plans to make the company carbon neutral by 2040. Shortly after, the e-commerce giant made the largest EV order in history, requesting 100,000 vans from Rivian (NASDAQ: RIVN) after investing $700 million in the EV company earlier that year.

Aiding in Bezos’ objective is the long-awaited commercial launch of Amazon Prime Air drone delivery. The service will finally get off the ground later this year in the town of Lockeford, California.

You may also like:

Mullen Group acquires US 3PL QuadExpress for $40M

Canada freight pricing to jump, Mullen Group CEO says

Mullen Group pushes through Q3 with help from feds

Source: freightwaves - Mullen stock soars after EV maker’s deal with Amazon delivery partner
Editor: Jack Daleo