Tevva, a pioneer in electric and hydrogen-electric trucks, is set to merge with Canada-based automaker ElectraMeccanica. This strategic collaboration not only highlights the agility of both companies to adapt to changing market demands but also signifies a pivotal moment in their collective journey towards shaping the future of commercial electric vehicles.
ElectraMeccanica initially garnered attention with its innovative three-wheeled electric vehicle, the Solo. However, production was halted due to safety concerns. Undeterred, the company has pivoted its focus towards electric trucks, aiming to address the rising demand for efficient and reliable commercial vehicles within the fleet industry.
Susan Docherty, CEO of ElectraMeccanica, stated, “We believe this is the right time and Tevva is the right partner with which to pivot from consumer vehicles to commercial vehicles and respond to commercial fleet customer demand for superior, reliable and cost-efficient trucks.”
The merger comes at a strategic juncture for both manufacturers. Tevva has already made strides in electric truck production, including hydrogen-electric variants. Its 7.5-tonne electric truck, approved for regulatory compliance in January, is being produced at its manufacturing facility in Tilbury, London. Simultaneously, ElectraMeccanica’s venture into electric trucks is facilitated by its newly commissioned factory in Arizona.
David Roberts, director of Tevva, emphasized the company’s decade-long commitment to developing zero-emission commercial vehicles. “Since Tevva’s founding more than ten years ago, we have focused our engineering and product development capabilities on developing a portfolio of zero-emission commercial vehicles that have generated significant customer interest,” he stated.
If the merger is finalized, David Roberts is expected to assume the role of executive chairman, with Susan Docherty serving as the chief executive of the new entity.
Tevva’s journey has been marked by impressive funding achievements. Its latest funding round in June 2022 secured £41 million, bringing the company’s total funds to $140 million. In terms of financial outlook, the merged companies are projecting combined revenue ranging from $1.3 billion to $1.5 billion in their 2028 financial targets.
The merger will create a new entity named Tevva, Inc., with a projected post-merger cash balance of $70 million to $80 million and debt around $26 million. The shares distribution will see Tevva shareholders owning 76.5% and ElectraMeccanica shareholders holding 23.5% of the merged company.
This merger signals the collaborative spirit and innovative potential within the EV industry. As the automotive landscape evolves, ElectraMeccanica and Tevva are poised to drive innovation forward, setting a strong example for the evolution of commercial vehicles and green transportation solutions.