The electric vehicle sector encountered another jolt as Gilbert-based Zevx Inc. has started the process of shutting down operations and liquidating assets. Special purpose entity Zevx Liquidation LLC handled the auction of the company's equipment and battery packs, and is also overseeing the sale of Zevx's intellectual property, "including an issued patent, patent applications, source code, the company's website domain, logos and marketing materials," according to a sale memorandum obtained by the Business Journal. The auction of Zevx's physical assets occurred at their warehouse on 565 E. Germann Road in Gilbert.
After securing millions of dollars in venture capital in 2023, Zevx's recent unraveling signifies a stark reversal of fortune for the EV charging company, which initiated an assignment for the benefit of creditors in early July – a measure allowing a swifter liquidation process than a Chapter 7 bankruptcy filing. "This is an expedited sales process necessitated by the financial condition of the company" the sale memorandum indicated. Despite the sale of their intellectual property being still ongoing, and with "multiple parties interested in the technology," Resolution Financial Advisors’ principal and managing director David Johnson communicated that the auction proceeds' valuation has not been calculated, and no official comments regarding the offers in play have been provided yet, as noted by the Business Journal.
Founded in 2019, Zevx, previously known as Zero Electric Vehicles, expanded into a 103,000-square-foot facility in Gilbert in 2021 to produce battery pack technology and mobile EV charging units. In March 2023, Zevx raised $20 million in a tranche of a funding round led by Reynolds Capital, the investment arm of The Reynolds and Reynolds Company, and by last year, the company employed more than 100 individuals and had raised a total of $37.4 million, according to PitchBook data reported by ABC15.
The closure of Zevx mirrors a similar situation at Nxu Inc., another Arizona-based EV company, which has announced the auctioning of its manufacturing equipment and plans to sublease its warehouse and office headquarters. These downturns come amidst broader trends in the EV industry, which has experienced peaks and valleys in recent years. While Zevx has not yet responded to inquiries about its shutdown, stakeholders, including KORE Power—who acquired a 4.2% stake in Zevx last year and supplied battery modules for its powertrain kits—have also not issued statements on the situation.
