London truck maker merges with Arizona EV manufacturer

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【Summary】London-based electric truck manufacturer Tevva is set to merge with Arizona EV contract manufacturer ElectraMeccanica. The merger will allow Tevva to scale its production and serve the UK, European, and US markets. ElectraMeccanica shareholders will own 23.5% of the combined company, while Tevva shareholders will own 76.5%. The merger is expected to close in Q4 2023, and the combined company will operate as Tevva Inc, trading on the Nasdaq Capital Market.

FutureCar Staff Aug 15, 2023 4:16 PM PT

London truck maker merges with Arizona EV manufacturer

Tevva and ElectraMeccanica have announced plans to merge, forming a combined company that will focus on the production of battery-electric trucks for urban delivery. Tevva, which has already started delivering its 7.5 tonne battery-electric truck to commercial fleet customers, will benefit from ElectraMeccanica's recently-commissioned manufacturing facility in Mesa, Arizona. This expansion is expected to help the combined company scale its production to serve the UK, European, and US markets.

ElectraMeccanica CEO Susan Docherty expressed excitement about the partnership, highlighting Tevva's unique engineering expertise and the growing demand for commercial vehicles. The company believes that now is the right time to pivot from consumer vehicles to commercial vehicles and meet the needs of commercial fleet customers. Tevva's strong presence in the UK and European market, combined with ElectraMeccanica's manufacturing facilities and resources, will contribute to the growth of the combined company.

Tevva, founded in 2013, has developed a purpose-built commercial-grade electric battery system for its vehicles and has plans to introduce 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% on a fully diluted basis. The combined company is expected to have a cash balance of approximately $70-80 million, with a debt of around $26 million.

The merger is anticipated to be finalized in the fourth quarter of 2023, with the combined company operating as Tevva Inc and being domiciled 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 approximately $5 million in annual cost savings. Looking ahead to 2028, the companies have set financial targets of $1.3-1.5 billion in revenue and mid-teens EBITDA margins.