London electric truck maker to merge with Arizona EV contract manufacturer

“Tevva recently commenced deliveries of its 7.5 tonne battery-electric truck to commercial fleet customers focused on urban delivery – a critical and high-growth segment of the overall commercial truck market for delivery-dependent urban areas,” explained the companies in a statement. “Tevva’s existing 110,000sq-foot EV manufacturing facility in Tilbury, UK, would be complemented by ElectraMeccanica’s recently-commissioned 235,000sq-foot facility in Mesa, Arizona, which is expected to enable the combined company to scale its production to serve the UK, European and US markets.”

“We are excited to partner with Tevva, given their unique engineering expertise in an essential segment of a growing market,” said ElectraMeccanica CEO Susan Docherty. “We believe this is the right time to pivot from consumer vehicles to commercial vehicles and respond to commercial fleet demand. Tevva is extremely well positioned in the UK and European market, and our manufacturing facilities, executive team and balance sheet will help take our combined company to the next level.”

Founded in 2013, Tevva has developed a purpose-built commercial-grade electric battery system for its vehicle, and has a hydrogen-based range-extender in the pipeline.

Upon the closing of the proposed transaction, 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. The combined company expects to have a cash balance of ~$70 – 80m, with debt of ~$26m.

Expectations are that closure will be in the fourth quarter of 2023 with the combined company operating as Tevva Inc, domiciled in Delaware, with shares traded on Nasdaq Capital Market under ‘TVVA’. ~$5m in run-rate annual cost savings are predicted by year-end 2024.

Financial targets for 2028 include $1.3 – 1.5bn revenue and EBITDA margins in the mid-teens, said the companies.