A maker of lorries powered by green energy plans to merge with NASDAQ-listed ElectraMeccanica.
Tevva, headquartered in Tilbury, Essex, aims to enhance the range of battery-powered vehicles and is developing hydrogen range-extender technology as part of a dual-energy system.
Its vehicles are currently built at its 110,000-square-foot EV manufacturing facility in Tilbury. The firm recently commenced deliveries of its 7.5t battery-electric vehicle to commercial fleet customers focused on urban delivery.
The proposed deal will be a major pivot for ElectraMeccanica, which was forced to discontinue its three-wheeled Solo vehicle (below) following a recall in February.
Tevva said the deal would power its growth in the UK and Europe and allow it to enter the US market as it produces more vehicles at ElectraMeccanica’s recently-commissioned 235,000-square-foot manufacturing facility in Mesa, Arizona.
The combined company would target revenue of $1.3-$1.5 billion by 2028.
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David Roberts, current director of Tevva and anticipated incoming executive chairman – should the deal complete – said: “Since Tevva’s founding more than 10 years ago, we have focused our engineering and product development capabilities on developing a portfolio of zero-emission commercial vehicles that have generated significant customer interest.
“Our vehicles have undertaken more than 300,000 miles of testing and operating experience in real-world conditions by demanding fleet operators.
“We are excited to merge with ElectraMeccanica and accelerate the growth of the combined company. Throughout the process, we have been impressed with ElectraMeccanica’s management team and strongly believe that ElectraMeccanica’s complementary assets, skills and capital will further enhance our advantages in this large and rapidly growing market.”
Susan Docherty, CEO of ElectraMeccanica, added: “We are incredibly excited to partner with Tevva given their unique engineering expertise in an essential segment of a large and growing market. 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.
“The complementary operations of the two companies and our similar values and mission give me complete confidence we can jointly create significant shareholder value. Tevva is extremely well-positioned in the UK and European market and our world-class manufacturing facilities, combined experienced senior executive team and balance sheet will help take our combined company to the next level.”