$275 Billion TAM1 that is Growing and Electrifying Rapidly
Electric Medium- and Heavy-Duty Trucks: A Critical Segment of a Growth Market
Tevva Plays A Pivotal Role in Last-Mile Delivery
Tevva makes medium- and heavy-duty electric trucks – the “workhorses” that make last-mile delivery a reality for hundreds of millions of people and businesses.
This is a large segment of a massive worldwide market that is under-electrified, but where demand for EVs is strong due to government incentives and large-fleet operators that need to improve emission metrics.
A Great Market / Strong Demand
Global Transportation Market
In need of disruption and decarbonization1
Medium/Heavy-Duty Commercial EV Trucks 2021-20302
For BEV trucks in urban areas joint BCG/IHS Market Study
Projected Business Model & Timeline: Highlights
Deliveries of 7.5t BEV to UK customers begins
Ramp up volume in UK. Start 7.5t BEV sales and commercial operations in EU
- Provide test fleet of 7.5t BEV to U.S. customer
- Production of 7.5t BEV starts in U.S.
- 19t Hydrogen range-extender (REX) truck launch in UK and EUV3
- Ramp up of 7.5t BEV volumes in U.S. 19t Hydrogen range-extender truck launch in U.S.
- Launch of 19t REX and ramp up of volumes in U.S. market
- Estimated total revenues: $1.3 – $1.5 billion, EBITDA target of mid-teens
The combined company is expected to benefit from the acceleration of Tevva’s U.S. market entry, supported by the complementary platform, team, and assets of ElectraMeccanica, in addition to long-term reductions in material costs. The transaction is also expected to deliver approximately $5 million in run-rate annual cost savings by year-end 2024.
Within transportation, medium- and heavy-duty trucks are responsible for an estimated 22% of all CO2 emissions – more than shipping and aviation combined.
In addition to helping the commercial trucking industry reduce their carbon footprint, Tevva has a deep commitment to decreasing its carbon footprint, and driving sustainability underpins everything they do. Tevva deploys production and consumption procedures that promote savings in natural resources, is actively working towards reducing single-use packaging for components, increasing the use of alternative materials (with lower environmental impact), and demanding better recyclability for materials and packaging. Ultimately, Tevva strives for resource efficiency to limit environmental impact. As a combined company, Tevva and ElectraMeccanica would continue making the tough but necessary decisions to work toward Net Zero emissions.
- Global annual sales of medium / heavy-duty trucks (ICE + ZEV – 2021); based on EY Parthenon report
- Based on Morgan Stanley equity research estimates
- Concept previewed at IAA 2022