In a strategic move to fortify their positions in the burgeoning electric commercial vehicle sector, British electric truck manufacturer Tevva and Canadian electric car maker ElectraMeccanica have unveiled plans to merge their operations. This collaboration, aimed at capitalizing on the growing demand for eco-friendly commercial transportation solutions, will see the formation of Tevva, Inc., a new entity poised to revolutionize the electric commercial vehicle landscape.
The merger comes as a strategic partnership between the two companies, with Tevva owning the majority stake of 76.5 percent and ElectraMeccanica holding the remaining 23.5 percent. This promising union is anticipated to be finalized by the end of the fourth quarter in 2023.
See also: Tevva started series production of its 7.5-tonners battery-electric truck
Tevva, Inc. is set to be headquartered in the state of Delaware, United States. The confluence of Tevva’s expertise and ElectraMeccanica’s innovative approach is projected to usher in a new era of electric commercial vehicles, starting with the UK market and subsequently expanding to continental Europe and the United States.
Central to their collaborative venture is the utilization of Tevva’s established manufacturing facilities in Tilbury, England, and ElectraMeccanica’s cutting-edge plant in Mesa, Arizona. This production synergy aims to bring forth a fresh wave of medium- and heavy-duty electric commercial vehicles, catering to the evolving demands of the market.
Notably, Tevva’s commendable portfolio features an electric 7.5-tonne truck that has already made its mark in the industry. Building on this success, the company introduced a formidable 19-tonne truck in 2022, further solidifying its position as an innovator in the electric commercial vehicle sector.
In a pivotal move, ElectraMeccanica made headlines in March 2023 by announcing the discontinuation of its pioneering three-wheeled electric Solo model. Instead, the company is redirecting its focus towards the development of four-wheeled electric commercial vehicles, concentrating its efforts on the United States market.
As the merger’s gears shift into motion, David Roberts, the current director of Tevva, is slated to ascend to the role of executive chairman. Concurrently, Susan E. Docherty, the CEO of ElectraMeccanica, is anticipated to take the helm as the future CEO of the merged entity.
Financially, Tevva and ElectraMeccanica are setting their sights on a revenue target ranging from $1.3 billion to $1.5 billion by 2028, alongside the goal of achieving mid-teens EBITDA margins. This ambitious outlook underscores their determination to carve a significant niche in the swiftly expanding electric commercial vehicle market.
See also: Tevva Launches its first hydrogen electric truck, range up to 310 miles
Tevva’s distinguished background in electric trucks, exemplified by the launch of its 7.5-tonne truck featuring a fuel cell range extender in September 2021, is poised to contribute invaluable expertise to the merged enterprise. With production kick-starting a year later in Tilbury, the announcement emphasizes that the vehicles, currently in the delivery pipeline, will now exclusively rely on battery electric power, marking a decisive step toward sustainability.
Of particular interest in this amalgamation is the potential for amplified growth in the United States. The merger is anticipated to expedite Tevva’s advancement in the UK and European markets, while leveraging ElectraMeccanica’s profound expertise, state-of-the-art US manufacturing facilities, and financial resources to expedite their entry into the lucrative US market.
