London truck merger Arizona EV manufacturer

author: FutureCar Staff    

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

ElectraMeccanica CEO Susan Docherty expressed excitement about the partnership, highlighting Tevva's engineering expertise and the growing demand for commercial vehicles. She believes that Tevva's strong position in the UK and European market, combined 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 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 deal is anticipated 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 ticker symbol 'TVVA'. By the end of 2024, the combined company aims to achieve 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.

FutureCar Staff