London electric truck maker merges with Arizona EV contract manufacturer

author: FutureCar Staff    

Tevva and ElectraMeccanica, two leading companies in the electric vehicle industry, have announced a strategic partnership to further expand their presence in the commercial truck market. Tevva will be delivering its battery-electric trucks to commercial fleet customers focused on urban delivery, which is a critical and high-growth segment of the market. The company's existing manufacturing facility in the UK will be complemented by ElectraMeccanica's facility in Arizona, enabling them to scale production to serve the UK, European, and US markets.

ElectraMeccanica CEO Susan Docherty expressed excitement about partnering with Tevva, highlighting their unique engineering expertise and the growing demand for commercial vehicles. Tevva is well positioned in the UK and European market, and with the support of ElectraMeccanica's manufacturing facilities, executive team, and financial resources, the combined company is expected to reach new heights.

Tevva, founded in 2013, has developed a commercial-grade electric battery system for its vehicles and has plans for a hydrogen-based range-extender. This innovative technology sets Tevva apart in the industry and positions them for success in the evolving market.

Upon the completion of the partnership, ElectraMeccanica shareholders will own 23.5% of the combined company, while Tevva shareholders will own 76.5%. The combined company is expected to have a strong financial position with a cash balance of approximately $70-80 million and a debt of around $26 million.

The transaction is anticipated to close in the fourth quarter of 2023, and the combined company will operate as Tevva Inc, based in Delaware, with shares traded on the Nasdaq Capital Market under the symbol 'TVVA'. By the end of 2024, the combined company aims to achieve approximately $5 million in annual cost savings.

Looking ahead, the companies have set ambitious financial targets for 2028, including revenue of $1.3-1.5 billion and EBITDA margins in the mid-teens. With their combined expertise and resources, Tevva and ElectraMeccanica are well-positioned to capitalize on the growing demand for electric commercial vehicles and drive sustainable growth in the industry.

FutureCar Staff