Less than six months after filing for bankruptcy, which seemed doomed, Volta Trucks reemerged from the ashes with redeemable capital and a sloppy business plan. Commercial EV startups could resume work delivering electric last-mile trucks to customers this year.
Volta Trucks is a UK-based commercial EV startup that has spent almost four years making initial deliveries of its flagship commercial truck, the Volta Zero. We've reported on much of that journey, from a simple vehicle design sketch in 2019 to a prototype launch in less than a year.
Several rounds of funding have been confirmed with numerous pre-orders for the expanding Zero Truck line-up and plans to expand into the US. The Volta looked set to be launched on the European market by 2023 after signing more purchase agreements and obtaining the necessary certifications to begin official sales.
Volta began mass production in Austria ahead of delivery scheduled for the third quarter of 2023, but things started to deteriorate after battery supplier Proterra filed for Chapter 11 bankruptcy protection last summer.
Volta Trucks also announced that it will file for bankruptcy by October 2023, citing tight capital markets. But a month later, we learned that Luxor Capital Group, Volta Trucks' shareholder and one of its largest lenders, was finalizing a deal to buy the bankrupt startup and keep it running. reported.
Today, as we enter the second quarter of 2024, Volta Trucks confirmed its acquisition by Luxor Capital, giving the commercial EV startup an opportunity to continue operating, albeit under a more concentrated and focused business strategy. It gave us a financial runway.
Volta Trucks focuses on EV delivery in Europe
Volta today revealed details of its 2.0 business, led by new owner Luxor Capital and focused on delivering zero commercial trucks to European fleet customers. The revived company, now called Volta Commercial Vehicles Ltd, maintains its UK registration and employs around 150 people, although in previous versions he worked for more than 750 people worldwide. .
Funding from Luxor has enabled the company to resume development of its 16- and 18-ton Volta Zero trucks ahead of plans for mass production in Austria later this year with contract manufacturer Steyr Automotive. Speaking about the company's second life and restructured business plan, Volta CEO Essa Al-Saleh said:
We want to confirm orders from existing customers, restructure our supply chain, complete a significant funding round and ensure that our series vehicles are ready for delivery. We are currently in discussions with all of our suppliers and partners to realize these goals. We have learned a lot from our challenging journey and are stronger and more focused than ever.
Over the past few months, we have worked hard to analyze our original business plan and simplify our business model with a focus on speed to market, capital efficiency, and profitability. The new Volta trucks offer an innovative “chassis cab” product, supported by customized maintenance and service offerings and partnerships with certified bodybuilders. We believe this will best support our customers' immediate needs and accelerate their transition to electrification.
Volta shared that customer testing of the Zero Truck in real-world operations is once again underway in the UK, ahead of compliance with the GSR-2 (General Safety Regulations) standard, which comes into force in July. Outside the UK, Volta Trucks says it will expand customer trials to customers in Germany, France, Scandinavia and Austria in the second quarter.
Luxor Capital's funding for the revived startup includes a first round of convertible financing within the next month, followed by a Series A round for investors expected in mid-2024. Volta expects the Series A round will provide enough funding to launch Zero Truck. Start mass production and deliver the first EVs to customers.
The commercial EV startup, which has plans to expand in France, also shared its intention to establish customer partnerships that will allow its distinctive Zero truck to hit the roads during the 2024 Paris Olympics this summer.
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