ElectraMeccanica, a designer and assembler of electric vehicles, and Tevva, a pioneer in electric medium- and heavy-duty commercial vehicles have announced that they have entered into a definitive arrangement agreement, in a bid to grow their combined market share for electric trucks.
Tevva recently began delivery of its 7.5t battery-electric truck to commercial fleet customers focused on urban delivery, supported with a purpose-built, commercial-grade electric battery system. The company’s future product portfolio is being developed to include a proprietary hydrogen range-extender technology, which delivers a differentiated and sustainable dual-energy solution. Tevva’s existing EV manufacturing facility in Tilbury, UK, will be complemented by ElectraMeccanica’s facility in Mesa, Arizona, which is expected to enable the combined company to scale its production to serve the UK, European and US markets.
“Since Tevva’s founding more than ten 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,” said David Roberts, Director of Tevva. “We are excited to merge with ElectraMeccanica and accelerate the growth of the combined company. [We] strongly believe that ElectraMeccanica’s complementary assets, skills and capital will further enhance our advantages in this large and rapidly growing market.”
The combined company is expected to benefit from the acceleration of Tevva’s U.S. market entry, supported by the complementary platform, team, and assets of ElectraMeccanica, in addition to anticipated long-term reductions in material costs. The transaction is also expected to deliver approximately $5 million in run-rate annual cost savings by year-end 2024.
“We are incredibly excited to partner with Tevva given their unique engineering expertise in an essential segment of a large and growing market,” said Susan Docherty, ElectraMeccanica CEO. “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. Tevva is extremely well positioned in the U.K. 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.”