Company Spotlight: Volta Trucks

On December 1, 2023, a new unit of hedge fund Luxor Capital bought the UK business and assets of Volta Trucks AB. Professional services firm Alvarez and Marsal Europe has confirmed the sale of the business and assets for an undisclosed amount to Volta Commercial Vehicles, owned by Luxor Capital Group.

Company Overview

Founded in 2017, Volta Trucks is a Swedish-based company that has revolutionized the commercial vehicle industry with its commitment to electric mobility. Volta Trucks' journey began with a passion for safety. Its mission is to accelerate the transition to fully electric trucks, reducing the effects of climate change and enhancing urban safety and sustainability.

The company's innovative approach to electric truck design has garnered significant attention, enabling Volta Trucks to raise millions in funding to date. In April 2022, the company announced its first 'Volta Trucks Hub' in Bonneuil-sur-Marne, Paris, to deliver its Truck-as-a-Service customer-focused operations.

Description of Business

Volta Trucks is a Swedish-based company that manufactures and provides services for electric trucks. The company was founded in 2017 by Scandinavian entrepreneur Carl-Magnus Norden and Kjell Waloen. Co-founder Norden sought to address the alarming number of pedestrian and cyclist fatalities caused by commercial vehicles in cities. The company's registered offices are in Stockholm, Sweden, and London, UK.

Volta Trucks' first product is the Volta Zero, a purpose-built full-electric large commercial vehicle designed specifically for city-center freight deliveries. The flagship product is a 16-tonne truck with a central seating position and a large cab window, providing enhanced driver visibility.

The company's Truck-as-a-Service solution provides fleet managers with a comprehensive package. The package includes electrical supply and infrastructure, finance, maintenance and servicing, and training. This all-in-one package reduces the transition risks going to electric and maximizes the uptime and operational efficiency of each vehicle.

The company's mission is to accelerate the transition to fully electric trucks, reduce the effects of climate change, and enhance urban safety and sustainability.

Volta Trucks' corporate values include sustainability, safety, and innovation. The company has raised over €360 million in funding to date. It also had an order bank of around 6,000 vehicles with a value of approximately $1.3 billion as of mid-2023.

In October 2023, Volta Trucks filed for bankruptcy in Sweden. However, the company has since been working on a 'Phoenix Project' to re-enter the market, with plans to share its new strategy soon. The company's investors include Luxor Capital Group, the European Investment Bank, and Byggmästare Anders J Ahlström Holding.

Targeted Customers

Volta Trucks targets the commercial vehicle sector, specifically focusing on electric trucks for city-center freight deliveries. The company's primary customer base includes logistics companies, municipalities, and other organizations that require sustainable, safe, and efficient transportation solutions. With a Total Cost of Ownership that's lower than existing diesel-engine trucks, fleet managers can deliver both sustainability and profitability for the first time.

Volta Trucks' marketing and advertising strategies center around its innovative and sustainable approach to commercial vehicles. The company has leveraged LinkedIn to recruit top talent and establish a strong brand strategy. Volta Trucks has also partnered with various global leaders in the supply chain for the development and production of the Volta Zero.

Current Competitors

Voltas' major competitors in the electric vehicle industry include companies such as Einride, XOS Trucks, Arrival, CityFreighter, DAF, Renault Trucks, Volvo Group, and Volvo Trucks.

The company's competitive advantages lie in its focus on sustainability, safety, and innovation. Volta Trucks' products, such as the Volta Zero, specifically address the needs of city-center freight deliveries, with an emphasis on reducing environmental impact and enhancing road safety.

Among the challenges the company has faced include a bankruptcy filing in Sweden in October 2023. Despite this, Volta Trucks remains a significant player in the electric vehicle industry.

As Volta Trucks continues to innovate and grow, it aims to make a lasting impact on the commercial vehicle sector. It aims to lead the way toward a cleaner, safer, and more sustainable future for cities worldwide.

Read also: Analysis - Volta Trucks' Acquisition By Luxor Capital Group