EV startups have struggled as rising inflation and interest rates have shut off access to funding.
British electric truck company Tevva is actively reaching out to potential merger partners after their planned deal with ElectraMeccanica was terminated earlier this month.
Tevva remains optimistic, stating they are in discussions with multiple investors and companies interested in a merger. The company believes that these talks will lead to both medium and long-term financing, ensuring the fulfillment of its business objectives.
Tevva confirmed it is currently producing several 7.5-tonne fully electric trucks, soon to be delivered to clients. The company has secured approximately $140 million from investors to date.
The initial merger, announced in August, aimed to provide Tevva with U.S. production capabilities and targeted a revenue of up to $1.5 billion by 2028. However, ElectraMeccanica, based in Mesa, Arizona, called off the deal, alleging that Tevva withheld crucial information.
Tevva refutes these claims. The company stated that it had granted ‘full and open access’ to ElectraMeccanica and plans to pursue legal action.
In recent years, numerous electric vehicle startups attracted significant investment. However, many of these companies now face financial challenges due to increasing inflation and interest rates, limiting their access to capital.
As a result, some, like Swedish electric truck manufacturer Volta Trucks, have initiated bankruptcy proceedings.
