The Electric Truck Industry's Next Phase

Update: In October 2023, ElectraMeccanica announced it had terminated the planned merger with Tevva, citing breaches of the agreement by Tevva. This article describes the deal as it was announced in August 2023.

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. Fleet operators adding them will want fleet management software that shows how each vehicle performs.

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 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 reported by TechCrunch.

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 incentives 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 would keep trading as SOLO until the deal was sealed, expected in the fourth quarter. The combined company will trade as Tevva, Inc., with the TVVA ticker symbol.

Under the deal terms, ElectraMeccanica shareholders would secure a 23.5% stake in the merged entity, leaving Tevva stakeholders with the remaining 76.5%, according to TechCrunch.

This alliance isn’t just about optics, it’s a smart business move. Both sides expected to rake in $5 million in yearly cost savings by the end of 2024 and were gearing up for $1.3 billion to $1.5 billion in revenue 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.

Written by

Georgia Katos

Content Writer

Georgia writes about fleet management and GPS tracking at Locate2u. She covers how technology helps businesses monitor and manage their delivery fleets more effectively.