Tevva to merge with US electric vehicle manufacturer ElectraMeccanica

Commercial Motor
August 15, 2023


A transatlantic merger between UK-based electric truck manufacturer Tevva and US electric vehicle designer and assembler ElectraMeccanica has been announced. The deal's strategic underpinning will enable Tevva to scale its production capabilities while setting its sights on the lucrative US market.

The joint statement from the two companies highlighted that the newly merged enterprise's initial focus would be the UK market, followed by penetrating the European and US markets. The ultimate objective is to establish a dominant presence as the "market leader" in the realm of zero-emission commercial vehicles.

Underpinning this ambitious endeavour, Tevva's 110,000sq ft EV manufacturing facility in Tilbury will synergise with ElectraMeccanica's 235,000sq ft facility in Mesa, Arizona. Both parties say this will allow them to efficiently scale production to cater to the demands of the UK, European, and US markets.

The merger, slated for completion in Q4 2023, is poised to expedite Tevva's US market entry and realise approximately $5m in annual cost savings by the close of 2024. As part of the collaboration, Tevva will gain access to a $6m credit facility from ElectraMeccanica, facilitating the swift delivery of Tevva's electric commercial vehicles to fleet customers.

Operating under the moniker Tevva Inc, the merged entity is anticipated to establish its headquarters in Delaware and trade on the Nasdaq stock exchange. Upon closure of the transaction, ElectraMeccanica shareholders will hold a 23.5% stake, while Tevva shareholders will secure a majority 76.5% ownership. The merged entity is expected to boast a cash balance ranging from $70m to $80m, offset by a debt of approximately $26m.

David Roberts, the current director of Tevva, poised to take on the role of executive chairman in the merged company, said: "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 and the anticipated CEO of the merged entity, added: "The complementary operations of the two companies and our similar values and mission give me complete confidence we can jointly create significant shareholder value."



About the Author


Commercial Motor

Commercialmotor.com is the online presence for Commercial Motor magazine, the world’s oldest magazine dedicated to the commercial vehicle industry.

It is your online source for the best new and used trucks and trailers in the UK - plus the latest news, and the best buying advice you'll find in the industry.

All of the dealers listed have been are visited by our field sales team in person at their premises and our editorial team are constantly out and about speaking to dealers, operators and suppliers - this helps build really great market knowledge that assists you.

Articles published by the author Commercial Motor may be collaborative efforts by our journalists or contain significant elements obtained from press releases or company statements. They have, however, still been written and checked by our expert editorial team.

Share this article

Vehicle Type