Credit: Business WireElectraMeccanica and Tevva plan to merge operations as part of a plan to advance the commercial vehicle industry.
The proposed merger between ElectraMeccanica and Tevva is aimed at capitalizing on the burgeoning electric medium- and heavy-duty commercial vehicle sector. Expected to reach a substantial $67 billion market value by 2030, the industry is rapidly gaining momentum. As part of the agreement, the two companies intend to create zero-emission commercial vehicles, with a primary focus on the United Kingdom followed by expansion into Europe and the United States.
Tevva, an electric commercial vehicle company, has already commenced deliveries of its battery-electric trucks to urban fleet customers. With the global shift toward sustainable urban delivery solutions, Tevva's proprietary electric truck technology aims to increase the viability of the electric vehicle industry.
The partnership between ElectraMeccanica and Tevva is anticipated to expedite Tevva's expansion in the electric commercial vehicle domain. By leveraging ElectraMeccanica's manufacturing facility, expertise, and capital, Tevva aims to rapidly accelerate its growth trajectory. Furthermore, Tevva's approach extends to the development of a hydrogen range-extender technology, offering a unique and sustainable dual-energy solution.
The merger aims to seamlessly integrate Tevva's existing battery-electric truck manufacturing facility in the United Kingdom with ElectraMeccanica's recently commissioned facility in Arizona, U.S. This strategic synergy is poised to enable the combined company to address the burgeoning demand across the U.K., Europe, and the U.S.
The merged companies will be called Tevva. ElectraMeccanica shareholders will own 23.5% of the combined company and Tevva shareholders will own 76.5% of the combined company on a fully diluted basis, according to the agreement.
The combined company's financial targets for 2028 project revenue in the range of $1.3 to $1.5 billion. The merger is expected to close in the fourth quarter of 2023, pending regulatory approvals and shareholder consent.
"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," said ElectraMeccanica CEO Susan Docherty.
