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London Tech Week

While chasing Tesla, Europe’s Volta Trucks faces cliff dive, gets acquired by Luxor Capital Group

volta-trucks

Volta Trucks, one of the first few electric truck companies based in Europe chasing Tesla as a rival, recently faced a significant setback as it filed for bankruptcy due to challenges in sourcing batteries for its fleet of lorries. 

Despite its headquarters being in Stockholm, Sweden, the majority of Volta Trucks’ business and engineering operations are situated in the UK, with bases in Warwick, Coventry, and Reading. In June 2023, the company inaugurated its inaugural ‘service hub’ in Tottenham, North London, aiming to cater to its electric Heavy Goods Vehicles (HGVs), with London Mayor Sadiq Khan officiating the opening ceremony.

Layoff of 600 UK workers

In a recent turn of events reportedly, Luxor Capital Group, one of Volta’s major creditors, has acquired the electric truck startup out of administration. Unfortunately, this acquisition has resulted in a temporary loss of employment for the bulk of its 600 UK workers. 

Luxor Capital Group, both a shareholder and lender to Volta, engaged in advanced discussions with the company’s administrators, Alvarez & Marsal (A&M). While the specific deal value remains undisclosed, it is customary in such circumstances for the business to change hands for a symbolic sum.

Following its collapse in October, attributed to the inability to secure new funding, the company’s future is now in the hands of Luxor Capital Group’s new ownership vehicle, Volta Commercial Vehicles Limited. The fate of the employees who were laid off is uncertain at this stage, as it remains to be seen if the new ownership will consider rehiring them.

Founded in 2019 by Carl-Magnus Norden and Kjell Walöen, Volta Trucks garnered a total investment exceeding €360 million until 2022.

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