Exploring fresh merger options after failed ElectraMeccanica deal

author: FutureCar Staff    

British electric vehicle manufacturer Tevva has announced that it is exploring new merger opportunities after its deal with Canadian e-mobility firm ElectraMeccanica fell through. The two companies had previously announced a merger in August, highlighting their complementary operations based on ElectraMeccanica's presence in the US and Tevva's experience in the UK and EU.

However, ElectraMeccanica terminated the plans at the beginning of October, citing multiple breaches of the agreement by Tevva. This included failures by Tevva to disclose material information to ElectraMeccanica. Despite this setback, Tevva has stated that the termination of the deal has motivated its team, and they have laid down plans to regroup and emerge stronger.

Tevva has now re-engaged with various investors and public companies in search of a new merger partner. The company is confident that it will secure both medium- and long-term financing to complete its business plan and increase sales. Additionally, Tevva has restructured its leadership team, with David Roberts as the new CEO and Ken Scott as the managing director.

Furthermore, Tevva continues to receive interest from customers for its 7.5t battery-electric truck. The company has held open days and customer demonstrations, including a successful acceptance test with TG Lynes. This test marked the firm's first battery-electric truck for use in central London. Tevva also has several trucks in production for handover to other customers.

Tevva's 7.5t electric truck, designed for last-mile and urban delivery fleets, entered mass production earlier this year. It offers a range of up to 140 miles (227km) from its 105kWh battery. Tevva is also working on a 7.5t hydrogen-electric truck, which utilizes hydrogen range-extender technology to enhance the vehicle's range to up to 354 miles (570km).

Tevva expressed deep disappointment with ElectraMeccanica's abrupt decision to terminate the merger plans. The company claims it had no opportunity to respond to ElectraMeccanica's claims before they were made public. Tevva strongly refutes the basis on which the merger was terminated and intends to seek recourse through legal means.

The deal with ElectraMeccanica was expected to accelerate Tevva's growth in the UK, Europe, and the US market by leveraging ElectraMeccanica's expertise, manufacturing facility, and capital. ElectraMeccanica has stated that it is now in direct contact with several other companies following the termination announcement.

Conditions for electric vehicle startups remain challenging, as evidenced by the recent announcement from Volta Trucks. The startup revealed its plans to file for bankruptcy after the collapse of a supplier, citing a challenging capital-raising environment for electric vehicle players.

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FutureCar Staff