Israeli electric vehicle (EV) startup City Transformer plans to raise $50 million through a B-series investment round by the end of 2024 in order to begin manufacturing its small urban CT-2 model in Western Europe.
The vehicles’ compact sizes make them perfect for parking in crowded areas. In fact, City Transformer asserts that four CT-2s can be parked in the same space that a modern conventional four-wheeler would typically occupy. Additionally, with a width of just 1 meter, it can easily fit into most bylanes and alleys.
City Transformer Targets Urban Europe with Compact EV
The Israeli startup City Transformer has displayed their CT-2 tiny urban EV. By the end of 2024, Israeli electric vehicle (EV) startup City Transformer hopes to begin producing its compact urban CT-2 model in Western Europe. The business also announced on Monday that it would soon begin a Series B investment round to raise $50 million.
The company, which has so far funded $20 million, has chosen a factory in Western Europe where it will begin yearly manufacturing of 15,000 vehicles, but cannot yet divulge its location, according to Chief Executive Asaf Formoza.
Formoza stated that the startup’s increased funding should accelerate the start of series production. With a range of 180 kilometers (112 miles) and a width of 1 meter (3.28 ft) in “city mode,” the CT-2, which has already received approval for use in the European Union and Great Britain. This makes it narrow enough so that four of them could fit in a typical car’s parking space, according to Formoza.
The “performance mode,” however, which doubles the EV’s top speed to 90 kilometers per hour (56 miles per hour), causes the wheel base to increase to 1.4 meters. According to the company, the EV can accommodate two persons seated side by side and might be used for last-mile deliveries or other businesses. The CT-2 weights 450 kilograms (0.5 tons), which is less than a Tesla Model 3’s battery.
The City Transformer uses two 7.5 kW electric motors to power its performance. Additionally, the CT-2 can accelerate from 0 to 50 km/h in 5 seconds. According to the manufacturer, this shape-shifting vehicle is perfect for quick maneuvers due to its 8.5 m turning diameter.
“Is there a reason a person like you or me needs to maneuver in the city in a two-ton car and 600 kilograms of battery?” Formoza said.
Before taxes, the CT-2 will cost 16,000 euros ($17,400). According to Formoza, major automakers have made room for startups like City Transformer by rolling out smaller vehicles. According to Formoza, City Transformer is requesting from the EU the same subsidies now given to larger models for smaller EVs like the CT-2.
“The B (small car) segment is vanishing because carmakers make more on SUVs, so there’s going to be a huge void that us and others will look to fill,” he said.