Tevva

Tevva Resumes Merger Talks after ElectraMeccanica Fallout

British electric truck manufacturer Tevva has again started discussions with merger partners. They decided to resume the conversation after their planned deal with ElectraMeccanica failed earlier this month. The merger between Tevva and ElectraMeccanica was announced in August. The goal was to provide Tevva access to U.S. production facilities and targeting a revenue of up to $1.5 billion by 2028. However, ElectraMeccanica canceled the agreement holding Tevva’s failure to disclose critical information.

Tevva has asserted that they had provided ElectraMeccanica full access to information, which is also transparent. They have also mentioned their intention to go legal regarding the terminal deal. They are now seeking new merger opportunities and to work through their plan they are securing short-term as well as long-term financing.

Beside these, Tevva has also stated that they have several fully electric 7.5 ton trucks in production. Some of them are ready to be delivered as well. This demonstrates Tevva’s commitment to the electric vehicle market.

The collapse of the Tevva-ElectraMeccanica merger not only highlights the challenges they are facing but also reflects on the obstacles the start up companies are facing in the  field of electric vehicles.

In recent years, many such start up companies have secured substantial investments but rising inflation and interest rates have impacted them a lot. Economic downturns have limited their access to funding and compelled the start ups to take precautions.

Some of the EV startups even have started preparing for bankruptcy. They are formally declaring that they are unable to meet their financial obligations and need legal protection through the bankruptcy process. A Swedish-based electric truck manufacturer Volta Trucks filed for bankruptcy last week

Tevva's decision to re-engage with potential merger partners highlights the company's determination to overcome the setback caused by the canceled merger with ElectraMeccanica. Not only that, this also implies their efforts to establish a strong presence in the electric vehicle industry.