The transport industry is increasingly pressured to increase sustainable practices, and it’s not always straightforward. Many facets of large industries are not as easy to operate consciously – but electric trucks are a good start.
The latest E-truck partnership on the horizon is that of ElectraMeccanica, the company behind the compact three-wheeled electric vehicle ‘Solo and UK-based truck manufacturer, Tevva.
This move aims to power up their collective presence in the electric truck market, as both companies set their sights on greener horizons.
Electra-Tevva
ElectraMeccanica’s pint-sized electric vehicle, Solo, was recalled in February and eventually discontinued. It’s not necessarily a natural progression to medium- and heavy-duty commercial electric trucks. However, the booming niche within the global EV scene is filled with potential.
Tevva, on the other hand, sees this partnership as a golden ticket to expand their reach across the UK, Europe, and even make their debut in the US market. It also plans to increase truck production at ElectraMeccanica’s Mesa, Arizona plant – a move that promises to boost its operational prowess.
The Mesa plant is slated to start production engines in 2025, hitting full throttle by 2026. At its peak, it’s expected to churn out a whopping 10,000 units of Tevva’s 7.5-ton electric commercial truck model, as confirmed by a company spokesperson.
Tevva has already kicked off deliveries for the 7.5T model to their commercial fleet customers and continues to roll them out from their UK factory, currently operating at a capacity of 3,500 units.
An electrifying partnership
CEO Susan Docherty of ElectraMeccanica highlights the alignment of their strengths. “ElectraMeccanica’s American presence paired with Tevva’s European experience; our combined expertise in engineering and market strategies; the two powerhouses of Mesa, Arizona and Tilbury, United Kingdom; and the robust financial standing, all alongside Tevva’s lineup of ready-to-go products and an impressive client base,” she says.
She also notes the lucrative US government incentives. Unlike the three-wheeler industry, electric trucks can tap into government bonuses like the $1 billion earmarked for electrifying heavy-duty trucks and a rebate of up-to-$40,000 for medium-duty commercial vehicles.
Note taken
The stock market caught wind of the news and rewarded ElectraMeccanica with a 19% stock price surge. They will uphold SOLO trading for now, until the deal is sealed sometime in the fourth quarter, The combined company will trade as Tevva, Inc., with the TVVA ticker symbol.
Going forward, ElectraMeccanica shareholders will secure a 23.5% stake in the merged entity, leaving Tevva stakeholders with the remaining 76.5%, according to regulatory paperwork.
This alliance isn’t just about optics – it’s a smart business move. Both sides are expecting to rake in $5 million in yearly cost savings by the end of 2024. On the revenue track, they’re gearing up for $1.3 billion to $1.5 billion by 2028.
CEO Susan Docherty will pilot the newly formed company. David Roberts, Tevva’s current director, will take on the role of executive chairman for the new Tevva, Inc. They will boast a team of nine directors at the helm – four from ElectraMeccanica and five from Tevva.
About the author
Marce has contributed tech to various prominent publications since 2018, offering a transparent perspective into the tech industry and its effects on its users. She now spends her time developing insightful content for industry players. You know, when she's not gaming or geeking out about the latest fad.
