Tevva Motors is latest to ditch UK: Royal Mail EV lorry supplier moves to US
Royal Mail’s electric lorry supplier Tevva Motors will move its headquarters to the US after announcing a merger with a New York-listed electric carmaker.
Tevva Motors, whose headquarters are in Tillbury, Essex, said it would merge with Canada-based ElectraMeccanica and relocate to Delaware.
The start-up firm – who manufacture a range of medium and heavy duty electric vehicles for Royal Mail – had struggled with significant cash flow problems that had forced it to layoff staff, and had been in talks with private investors to raise extra capital.
Under the new arrangement, Tevva will be registered in Canada, with the boss of ElectraMeccania, Susan Docherty, taking the helm of the combined group.
Tevva will maintain its manufacturing centre in Tillbury, while taking advantage of Nasdaq-listed ElectraMeccania’s 235,000-square-foot facility in Arizona.
It comes as a slew of of UK companies consider US listings, with electric vehicle firms tempted by greater incentives under Biden’s Inflation Reduction Act.
Electric-bus maker Arrival began winding down its UK operations late last year as it shifted its focus to the US, following years of considerable financial losses.
“The result of these proposals is expected to have a sizable impact on the company’s global workforce, predominantly in the UK,” the company said at the time.
Tevva’s director David Roberts told the Telegraph that markets had been “dreadful” for raising new capital and said that the UK needs to “wake up as a country if we are to invest in electric vehicles.
Roberts said in a statement that the merger with ElectraMeccanica would “accelerate the growth of the combined company.”
“Throughout the process, we have been impressed with ElectraMeccanica’s management team and strongly believe that ElectraMeccanica’s complementary assets, skills and capital will further enhance our advantages in this large and rapidly growing market,” he added.
Myron Jobson, senior personal finance analyst at interactive investor, told Morning Wire that the move was just the latest “in a string of British pursuing a US listing, amid greater valuations and generous incentives that could bolster profits.”
“It is a similar story for British electric van maker Arrival, which shifted from focusing on the UK to developing a foothold in the US van market earlier this year to take advantage of tax credits for companies investing in electric vehicles and renewable energy technologies.”
The combined group is expecting to have a cash balance of approximately approximately $75m, with a debt of $26m.