British electric truck manufacturer Tevva Motors has filed for the appointment of an insolvency administrator in an effort to secure time to find new investors while under creditor protection.
The filing comes approximately six months after the company’s attempted merger with Canadian vehicle manufacturer ElectraMeccanica failed. Since then, Tevva has reached out to various investors and companies, seeking a new merger partner, but has not yet finalised any deals. The company aims to use creditor protection to continue these efforts.
In a statement, Tevva Motors cited challenging global economic conditions for electric vehicle startups as a reason for its current situation. The company said: “Despite positive customer interest in Tevva and its products, current global economic conditions have created a challenging environment for electric vehicle startups. As a consequence, we have filed notice of intent to enter administration with the court while the board is pursuing investment that secures the future of the company.”
Tevva has secured contracts to supply its electric trucks to Royal Mail and Travis Perkins. Production of the 7.5-tonne electric trucks, which have a range of 140 miles (225 kilometers), began last year at Tevva’s plant in Tilbury, Essex. The company also planned to introduce a version of the truck equipped with a hydrogen fuel cell.
The failed merger with ElectraMeccanica led Tevva Motors to file a lawsuit against the company and its CEO, Susan Docherty, over allegations related to the termination of the merger agreement. ElectraMeccanica claimed Tevva failed to share “material information,” a claim Tevva denied, asserting that it had provided full access and conducted thorough financial due diligence.
Since the merger’s collapse, Tevva has continued to seek investment and potential mergers. However, the challenging market conditions for electric vehicle startups have led the company to seek protection through the administration process.
According to Companies House, Tevva’s accounts for 2021 remain overdue.
