London truck merger Arizona contract

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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 allow Tevva to scale its production and serve the UK, European, and US markets. ElectraMeccanica's manufacturing facility in Arizona will complement Tevva's facility in the UK. Upon closing, Tevva shareholders will own 76.5% of the combined company, and ElectraMeccanica shareholders will own 23.5%.

FutureCar Staff Aug 16, 2023 9:36 AM PT

Tevva and ElectraMeccanica have announced a partnership to deliver battery-electric trucks to commercial fleet customers. The companies plan to serve the UK, European, and US markets by utilizing Tevva's existing manufacturing facility in the UK and ElectraMeccanica's facility in Arizona.

ElectraMeccanica CEO Susan Docherty expressed excitement about the partnership, highlighting Tevva's expertise in the growing market for commercial vehicles. The companies believe that now is the right time to respond to the demand for commercial fleet vehicles.

Founded in 2013, Tevva has developed an 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 proposed transaction is expected to close in the fourth quarter of 2023, and the combined company will operate as Tevva Inc. 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.

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.