Why Now: Exploring Our Potential Market Opportunity with Tevva

One of the most intriguing fundamentals of our proposed merger with Tevva, is the potential market opportunity at our mutual doorsteps. Now is the time for electrified commercial trucking at scale for a wide range of reasons. Here, we break down four significant factors for why we’re at the perfect economic, environmental and cultural intersection for Tevva and EMV to potentially combine forces.

Growth of Demand for Deliveries to Consumers and Businesses

Medium- and heavy-duty trucks represents a $275 billion,1 growing, global market. As consumers and businesses increase the volume of what they need and want shipped, the demand for zero-emission commercial vehicles will likely increase. In 2022, just 1.2% of medium- and heavy-duty trucks sold were electrified. Consumers and businesses that can benefit from Tevva’s zero-emission, commercial vehicles include postal service, e-commerce, utility, logistic, and government fleets – to name a few. Tevva is pioneering a cost-effective solution for decarbonizing fleets, and with demand for commercial vehicles on the rise, electric trucking is key to the industry’s future.

Population Growth

From a cultural perspective, we’re seeing both behavior changes and lifestyle changes based on where people live. As urban populations get more dense, the demand for delivery is expected to increase dramatically in the coming years – 78% by 2030 in urban areas alone according to the World Economic Forum. That means more trucks, an anticipated 36% in the world’s top 100 cities, and thus – more emissions. EMV has a historic commitment to improving urban transport, and potentially partnering with Tevva allows us to transform that commitment and serve as a catalyst to reduce emissions in a rapidly growing segment based on urban population growth.

Increasing Consensus Around The Need for New Commercial Transportation Tech

Within transportation as a whole, medium- and heavy-duty trucks are responsible for an estimated 22% of all CO2 emissions – more than shipping and aviation combined. This number will only grow larger. Tevva’s 7.5t Battery Electric Vehicles (BEV) can be the “workhorses” that make delivery of goods a reality for hundreds of millions of people and businesses, playing a pivotal role in urban and inter-urban delivery. With the introduction of their 19t BEV with a hydrogen range extender in years to come, Tevva will be a catalyst in decarbonizing a large segment of a massive worldwide market that is under-electrified.

Expanding Government Incentives and Support

Upon announcing our potential merger agreement with Tevva, we made clear our intention to become a market leader in the U.K., EU and U.S. Conveniently, all three of these markets have the backing of strong government incentives for commercial fleet operators to rapidly increase adoption of electric commercial trucks. In the U.K., the Road to Zero strategy outlines steps to accelerate the adoption of fuel-efficient motoring by company car drivers, businesses operating fleets, and private motorists, among others, to achieve Net-Zero emissions by 2035. In fact, as set out in the plan, the U.K. looks to end the sale of new conventional petrol and diesel cars and vans by 2030, and by 2050 aims to have almost every car and van be zero emission. Further, there are significant grants and rebate incentives, especially for commercial fleet operators, outlined within the strategy. In the U.S., the recently passed Inflation Reduction Act (IRA) allows for up to a $40,000 tax credit for commercial vehicles. As a result, Wood Mackenzie estimates that 54,000 electric trucks will be on U.S. roads by 2025. In the EU, three complementary policies being implemented across the whole continent including REPowerEU, the European Green Deal and the EU Clean Mobility Package outline financial and other incentives for business and commercial fleet operators to increase use of zero-emission medium- and heavy-duty vehicles.

We invite you to further explore our market opportunity by reviewing the investor deck on our microsite. Additionally, our shareholder relations team is on standby to answer any questions and share excitement about the market opportunity that exists for the proposed combined company. Contact us any time at: ir@emvauto.com.