Asher Bennett, brother of former Israeli Prime Minister Naftali, founded Tevva in 2013. Photo: Jeff Gilbert
Electric truck The startup founded by Essex entrepreneur Elon Musk is on the brink of administration as it seeks a bailout deal.
Essex-based Tevva Motors has filed a notice to appoint administrators after failing to secure enough investment to keep the company afloat.
The notice gives the company temporary legal protection from creditors while it makes a last-ditch effort to find additional funds.< /p>
Founded in 2013 by Asher Bennett—the older brother of former Israeli Prime Minister Naftali Bennett and a former Israeli Navy submarine officer—Tevva sought to disrupt the diesel truck market by introducing trucks equipped with hydrogen fuel cell technology.< /p
It signed agreements in principle with the likes of Royal Mail and Travis Perkins for the supply of its flagship 7.5-tonne electric trucks, which were to be built at its site in Tilbury, Essex.
Tevva aimed to disrupt the truck market by releasing trucks equipped with hydrogen fuel cell technology. Photo: SEC Newgate/PA
A Tevva Company spokesman said: “Despite positive customer interest in Tevva and its products, the current global economic conditions have created a challenging environment for electric vehicle start-ups.
“As a result, we have filed a notice of intent to enter the administration, while the board of directors makes investments that secure the future of the company.”
Despite high aspirations, the company was faced with a series of financial difficulties and disputes with competitors and suppliers.
A takeover deal by US buyer ElectraMeccanica collapsed last year, leading to mutual recriminations on both sides over who was at fault.
ElectraMeccanica said it had terminated the deal after “fatal breaches” of the agreement and failure to disclose information about company, a claim that Tevva is contesting.
Tevva's rival Arrival appointed administrators in February after it ran out of money < p>Tevva has also previously faced financial difficulties due to being hounded by suppliers over unpaid invoices.
Last year, the company faced a winding-up petition from an aluminum supplier over missed payments, which was resolved after the invoices were paid. The company has also recently been forced to make most of its staff redundant due to economic problems.
Tevva has also not yet filed its 2021 accounts at Companies House, which were due at the end of 2022, and has not filed further accounts about its business.
The possible collapse of the group would be the second major blow to Britain's fledgling electric van sector.
Rival Arrivals appointed EY as administrator in February after running without money.Arrival was valued at $13 billion (£10 billion) and listed on the New York Stock Exchange, but was unable to service its debt after shares fell 99.98 percent.
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