Electric truck maker Tevva merges with ElectraMeccanica
British electric truck manufacturer Tevva and Canadian electric car maker ElectraMeccanica will merge their companies to jointly focus on the electric commercial vehicle market – first in the UK and then in continental Europe and the US.
The new company will be called Tevva, Inc. and based in the US state of Delaware. Tevva will own 76.5 per cent of the company and ElectraMeccanica 23.5 per cent. The transaction is expected to close in the fourth quarter of 2023.
The merged company will use Tevva’s manufacturing facilities in Tilbury, England, and ElectraMeccanica’s in Mesa, Arizona, to produce electric commercial vehicles for the aforementioned markets. The focus will be on medium- and heavy-duty electric commercial vehicle sector. Tevva is known to have an electric 7.5-tonne truck on the market and introduced a 19-tonne truck in 2022.
ElectraMeccanica, for its part, announced in March 2023 that it would cease production of its only model to date, the three-wheeled electric Solo, and instead concentrate on four-wheeled electric commercial vehicles in the US. The Tevva facility in Tilbury, UK, where the 7.5-tonne truck currently rolls off the production line, is just over 10,000 square metres. The ElectraMeccanica plant in Mesa in the US state of Arizona is almost double that size. The duo does not mention how much effort it takes to convert the latter plant to producing electric trucks. Nor is there any mention of a new factory previously planned by Tevva on the European mainland.
What is clear, however, is that David Roberts, currently director of Tevva, will become the new executive chairman, and ElectraMeccanica CEO Susan E. Docherty is expected to become CEO of the future company. Regarding revenue, the partners are targeting around $1.3 billion to $1.5 billion in 2028 and EBITDA margins in the mid-teens.
Tevva will bring expertise to the new company with his electric truck experience. The British company first presented its 7.5-tonne truck with fuel cell range extender in September 2021. One year later, production started in Tilbury. However, the first deliveries apparently only took place recently. This is revealed in the current announcement on the company merger. It also states that the current vehicles will be delivered without a range extender. In other words, they will be powered purely by battery electricity.
And: The merger with ElectraMeccanica is interesting for the British, especially with regard to the US market: The merger is “expected to accelerate Tevva’s growth in the UK and Europe and speed its entry into the highly attractive US market by leveraging ElectraMeccanica’s US expertise, state-of-the-art US Manufacturing facility and capital.”
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