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 Tevva to scale its production and serve the UK, European, and US markets. Upon closing, Tevva shareholders will own 76.5% of the combined company, with ElectraMeccanica shareholders owning 23.5%. The combined company expects to have a cash balance of around $70-80 million and $26 million in debt.

FutureCar Staff Aug 18, 2023 7:15 AM PT

London truck maker merges with Arizona EV manufacturer

Tevva and ElectraMeccanica have announced a partnership to accelerate the production and delivery of battery-electric trucks for urban areas. Tevva, which specializes in urban delivery vehicles, will benefit from ElectraMeccanica's manufacturing facility in Arizona, allowing them to scale production for the UK, European, and US markets.

ElectraMeccanica CEO Susan Docherty expressed excitement about the partnership, stating that Tevva's expertise in the commercial vehicle market aligns with their goal to respond to the growing demand for electric commercial vehicles. Tevva's strong presence in the UK and European market, combined with ElectraMeccanica's resources, will help 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 to introduce a hydrogen-based range-extender in the future.

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 cash balance of approximately $70-80 million, with 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.

The companies have set financial targets for 2028, including revenue of $1.3-1.5 billion and mid-teens EBITDA margins.