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-based EV contract manufacturer ElectraMeccanica. The merger will enable the combined company to scale production and serve the UK, European, and US markets. Tevva specializes in battery-electric trucks for urban delivery, while ElectraMeccanica brings its manufacturing facilities and balance sheet to the partnership. Upon completion of the merger, ElectraMeccanica shareholders will own 23.

FutureCar Staff Aug 15, 2023 9:14 AM PT

London truck maker merges with Arizona EV manufacturer

Tevva and ElectraMeccanica have announced a partnership to deliver battery-electric trucks to commercial fleet customers focused on urban delivery. The companies plan to utilize Tevva's existing manufacturing facility in the UK and ElectraMeccanica's new facility in Arizona to scale up production and serve the UK, European, and US markets.

ElectraMeccanica CEO Susan Docherty expressed excitement about partnering with Tevva and highlighted their unique engineering expertise in the growing commercial vehicle market. She believes that now is the right time to respond to commercial fleet demand and sees Tevva's strong position in the UK and European market as an advantage.

Tevva, founded in 2013, has developed a commercial-grade electric battery system for its vehicles and has a hydrogen-based range-extender in development. 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, operating as Tevva Inc, is expected to close the deal in the fourth quarter of 2023 and will be domiciled in Delaware. The company's shares will be traded on the Nasdaq Capital Market under the symbol 'TVVA'. It is predicted that the combined company will achieve approximately $5 million in annual cost savings by the end of 2024.

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.