Nevoya raises $9.3M as its EV truck fleet reaches cost parity with diesel
Los Angeles-based Nevoya, an innovator in the electric vehicle logistics sector, has successfully closed a substantial $9.3 million seed funding round. This significant investment comes as the company achieves a major milestone: its electric truck fleet has reached cost parity with traditional diesel trucks for freight operations in California, signaling a pivotal shift in the adoption of sustainable transportation.
Emerging from stealth last year with an ambitious goal to accelerate EV truck adoption, Nevoya has rapidly made headway, attracting investment and partnering with major industry players. The company currently facilitates goods transportation for ten Fortune 500 companies, demonstrating strong market validation for its unique model.
At the core of Nevoya’s competitive edge is its strategic leveraging of Artificial Intelligence. Founder Sami Khan emphasizes that the integration of AI is not merely an enhancement but a fundamental pillar of their operations, enabling them to run a leaner, faster, and more efficient carrier business than legacy operators. Nevoya employs AI to meticulously optimize trucking routes, balance and match loads with the right vehicles, and minimize energy consumption. Furthermore, AI is crucial in managing complex charging schedules and overall battery health, ensuring maximum uptime and efficiency for their fleet.
Khan noted, “When we started running the trucking business, we looked at what [everybody was] doing, and we meticulously looked at every minute-by-minute of what was going on. We came to the conclusion that 90% of what was going on could be automated or semi-automated.” This automation, driven by AI, not only streamlines operations but also empowers human dispatchers to focus on higher-value tasks, fostering better communication with customers while significantly reducing human errors.
The decision to pursue a larger funding round was influenced by Shawn Xu from Lowercarbon Capital, who had closely followed Nevoya’s progress. Despite initially sitting on the sidelines, Lowercarbon Capital ultimately led the $9.3 million seed round, with participation from Floating Point, LMNT Ventures, and existing investors Third Sphere, Stepchange, and Never Lift. Notably, Qasar Younis, CEO of the self-driving AI company Applied Intuition, also joined the investor group, underscoring the long-term vision for autonomous capabilities.
This fresh capital is earmarked for an aggressive expansion beyond California into new, high-demand markets like Texas, where Nevoya is already hauling freight in Houston and Dallas. While these new markets present unique challenges, particularly regarding charging infrastructure, Nevoya is deploying innovative workarounds, such as utilizing overnight charging at stations typically reserved for passenger vehicles or school bus depots during off-peak hours. This strategy not only facilitates rapid expansion with lower upfront costs but also creates new revenue streams for these charging locations.
To manage this growth, Nevoya is adopting a decentralized management model, similar to Uber’s approach, by hiring general managers who will operate their locations as self-contained “startups-within-a-startup.” Khan believes this competitive framework will drive peak performance across the expanding network.
Shawn Xu confirmed that Lowercarbon Capital’s decision to lead the round stemmed from Nevoya proving its ability to achieve cost parity with diesel. “We want to understand the appetite and validation from the market,” Xu stated. Observing Nevoya’s progress, he challenged Khan to raise a significantly larger round, recognizing the immense potential. With lower cost per mile, reduced maintenance expenses, and the demonstrated efficacy of AI in route optimization, Nevoya is now truly “off to the races” in its mission to revolutionize freight logistics.
