City Transformer, an Israeli electric vehicle startup, is aiming to launch production of its compact CT-2 model in Western Europe by the end of 2024 and will soon launch a Series B funding round to raise $50 million, the company said on Monday.
The CEO, Asaf Formoza, revealed that the company has selected a factory for initial annual production of 15,000 vehicles, but declined to disclose its location.
The additional funds the startup is raising should help speed up series production, Formoza added.
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The CT-2, with a range of 180 km, has already received approval for use in the European Union and Britain. Its narrow width of just 1 meter in “city mode” allows four of them to fit into a single conventional car parking spot. However, the wheel base expands to 1.4 meters in “performance mode,” which doubles its top speed to 90 km per hour.
Designed to accommodate two people sitting in tandem, the CT-2 can also be utilized for last-mile delivery or other business purposes. With a weight of just 450 kilograms, it is lighter than the battery in a Tesla Model 3.
“Is there a reason a person like you or me needs to maneuver in the city in a two-ton car and 600 kilograms of battery?” Formoza said.
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The City Transformer CT-2 electric vehicle has a pre-tax price tag of 16,000 euros, or approximately $17,400. This comes as major car manufacturers are shifting their focus away from smaller cars and towards more profitable SUVs. As a result, there’s a growing opportunity for startups like City Transformer to fill this void.
“The B (small car) segment is vanishing because carmakers make more on SUVs, so there’s going to be a huge void that us and others will look to fill,” he said.
City Transformer is lobbying the EU for subsidies for smaller EVs like the CT-2 that are currently available for larger models, Formoza added.
