London truck maker merges with Arizona contract manufacturer

author: FutureCar Staff    

Tevva and ElectraMeccanica have announced a merger that will combine their expertise in the electric vehicle (EV) market. Tevva, a UK-based company, specializes in battery-electric trucks for urban delivery, while ElectraMeccanica, based in Arizona, focuses on consumer vehicles. The merger will allow the combined company to scale its production and serve the UK, European, and US markets.

ElectraMeccanica CEO Susan Docherty expressed excitement about the partnership, stating that Tevva's engineering expertise and position in the UK and European market make them an ideal partner. The companies believe that now is the right time to respond to the growing demand for commercial vehicles in the fleet industry.

Tevva, founded in 2013, has developed a commercial-grade electric battery system for its vehicles and has plans to incorporate a hydrogen-based range-extender in the future. Upon the completion of the merger, ElectraMeccanica shareholders will own 23.5% of the combined company, while Tevva shareholders will own 76.5%.

The merger is expected to be finalized in the fourth quarter of 2023, and the combined company will operate as Tevva Inc, based in Delaware. The company's shares will be traded on the Nasdaq Capital Market under the ticker symbol 'TVVA'. By the end of 2024, the combined company predicts annual cost savings of approximately $5 million.

Looking ahead, the companies have set financial targets for 2028, aiming for revenue between $1.3 billion and $1.5 billion, with EBITDA margins in the mid-teens.

FutureCar Staff