London truck merger Arizona EV

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【Summary】London electric truck maker 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 shareholders will own 23.5% of the combined company, while Tevva shareholders will own 76.5%. The merger is expected to be completed in Q4 2023, and the combined company will be named Tevva Inc. It aims to achieve $1.3-1.

FutureCar Staff Aug 21, 2023 4:47 PM PT

Tevva and ElectraMeccanica have announced a partnership to expand the production of battery-electric trucks for urban delivery. Tevva, known for its expertise in this market segment, will benefit from ElectraMeccanica's recently-commissioned manufacturing facility in Mesa, Arizona. This new facility will support the combined company's production scale-up to serve the UK, European, and US markets.

ElectraMeccanica CEO Susan Docherty expressed excitement about the partnership and the opportunity to respond to the growing demand for commercial vehicles. Tevva's strong presence in the UK and European market, combined with ElectraMeccanica's manufacturing facilities and resources, will take the combined company to the next level.

Tevva, founded in 2013, has developed a specialized electric battery system for its vehicles and has plans for a hydrogen-based range-extender. Upon completion of the transaction, ElectraMeccanica shareholders will own 23.5% of the combined company, while Tevva shareholders will own 76.5%.

The closing of the deal is expected to occur in the fourth quarter of 2023, with the combined company operating as Tevva Inc, based in Delaware. The company's shares will be traded on the Nasdaq Capital Market under the ticker symbol 'TVVA'. The combined company aims to achieve approximately $5 million in annual cost savings by the end of 2024.

The companies have set financial targets for 2028, including revenue of $1.3 - 1.5 billion and mid-teens EBITDA margins. This partnership positions Tevva and ElectraMeccanica to capitalize on the growing market for electric commercial vehicles and meet the increasing demand for sustainable urban delivery solutions.