London truck maker merges with Arizona EV manufacturer

author: FutureCar Staff    

Tevva and ElectraMeccanica have announced a partnership to deliver battery-electric trucks to commercial fleet customers in urban areas. Tevva, with its existing manufacturing facility in the UK, will be complemented by ElectraMeccanica's facility in Arizona, enabling the combined company to serve the UK, European, and US markets.

ElectraMeccanica CEO Susan Docherty expressed excitement about the partnership, highlighting Tevva's expertise in the growing market of commercial vehicles. She believes that now is the right time to respond to commercial fleet demand and that Tevva's position in the UK and European market, along with ElectraMeccanica's resources, will take the combined company to the next level.

Tevva, founded in 2013, has developed a commercial-grade electric battery system for its vehicles and has plans for a hydrogen-based range-extender in the future.

Upon the completion of the transaction, 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 cash balance of approximately $70-80 million, with a debt of around $26 million.

The closure of the transaction is anticipated to occur in the fourth quarter of 2023. 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 company predicts annual cost savings of approximately $5 million.

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