Proactive Investors - Tevva Motors, the British electric truck which supplies electric trucks to Royal Mail (LON:IDSI), plans to shift its base to the US following a merger agreement with Electrameccanica (NASDAQ:SOLO).
The Essex-based startup yesterday agreed to reverse into the New York-listed sector peer, with Tevva shareholders in the driving seat with 76.5% of the combined entity.
It said it plans to continue its engineering and production activities in Tilbury, Essex to cater to its UK and European client base, but also aims to leverage ElectraMeccanica’s production facility in Arizona, with hopes of initiating production there by 2026.
As per the merger terms, Tevva's registration will be in Canada and it will be established in Delaware.
Susan Docherty, ElectraMeccanica’s CEO, will be the boss, based in Mesa, Arizona, with the enlarged and renamed Tevva Inc trading under the ticker 'TVVA'.
This move signifies a growing trend of UK firms seeking listings in the US, driven by better valuations and attractive incentives for electric vehicle manufacturers and other cleantech and renewables companies.
Tevva, which has received support from UK taxpayers, specializes in the production of electric and hydrogen-fueled trucks, including an agreement earlier this year to supply Royal Mail with 1,000 electric trucks.
The UK postal group has already received some of the 7.5-tonne battery-electric trucks, as have other customers such as Travis Perkins (LON:TPK).
Later this year it aims to start selling a 7.5t hydrogen-electric truck, which benefits from hydrogen fuel cells that extend the vehicles' range to up to 354 miles (570km).
Tevva, which publicly unveiled its maiden vehicles in June 2022, has raised US$140mln so far, including £42mln ($57mln) last November.
Earlier this year, Arrival, a UK-based maker of electric vans, redirected its attention to the US market to benefit from the incentives provided by the Biden-led government.