'Elon Musk of Essex' who founded an electric lorry company used by Royal Mail says the truck-maker will move to the U.S. amid financial strains
Ashton Bennett spent several years in the Israeli army and made money working in cyber security. He didn’t have much in common with Tesla founder Elon Musk—until he decided to launch his own EV company in Tilbury, Essex called Tevva Motors a decade ago.
After years of operating in the U.K. and earning approval to mass-produce trucks for the likes of British postal service Royal Mail, Bennett’s company will move its headquarters to the States.
It will merge with New York-listed ElectraMeccanica, adding to the list of companies shifting base from the U.K., and will work on growing its fleet of commercial vehicles globally, the companies said in a joint press release.
The commercial vehicles company has reportedly run into financial troubles in recent times and has laid off scores of staff members.
It also continues to face legal demands from suppliers on settling transactions, according to The Telegraph. It’s not clear if the merger was part of the company’s efforts to improve its finances.
Tevva did not immediately return Fortune’s request for comment.
A new Tevva
Following the merger, the combined company will continue to be called Tevva—it will be registered in Canada and domiciled in Delaware. The new entity is expected to be listed under the tech-heavy Nasdaq index, which ElectraMeccanica is a part of.
The merger will help grow the market share of the two companies in the U.S., U.K. and elsewhere in Europe.
“We believe this is the right time and Tevva is the right partner with which to pivot from consumer vehicles to commercial vehicles,” ElectraMeccanica CEO Susan Docherty, who will also become the chief of the merged company, wrote in a statement.
“Tevva is extremely well positioned in the U.K. and European market and our world-class manufacturing facilities, combined experienced senior executive team and balance sheet will help take our combined company to the next level.”
Tevva will continue to manufacture its vehicles in Essex to serve its clients in Europe, while it will use ElectraMeccanica’s manufacturing site in Arizona to expand its American footprint.
The Bennett-owned company plans to deliver its first vehicles to Royal Mail in the coming weeks.
For Arizona-based ElectraMeccanica, the merger marks a shift from its existing operations in consumer EVs.
Following the deal’s closure, its shareholders will own 23.5% of the combined company, while Tevva’s shareholders will own the rest.
The cash balance of the combined company will be between $70-80 million, while debt will stand at $26 million. ElectraMeccanica’s board has also approved a $6 million credit provision for Tevva, subject to undisclosed conditions, to help the company finance its everyday expenses.
The deal is set to close by the end of the year.
Bennett is not expected to be on the board of the new company, but would have a role related to innovation, a Tevva director told The Telegraph.
