City Transformer. [Source: Reuters]

Israeli electric vehicle (EV) startup City Transformer aims to launch production of its small urban CT-2 model in Western Europe by the end of 2024 and will soon launch a Series B funding round to raise $50 million, the company said on Monday.

Chief Executive Asaf Formoza told Reuters the company, which has so far raised $20 million, has selected a factory in Western Europe where it will have an initial annual production of 15,000 vehicles, but cannot disclose its location yet.

The additional funds the startup is raising should help speed up series production, Formoza added.

The CT-2, which is already approved for use in the European Union and Britain, has a range of 180 kilometres (112 miles) and is 1 meter (3.28 ft) wide in “city mode.” This makes it narrow enough for four of them to fit into a conventional car’s parking spot, Formoza said.

But the EV’s wheelbase expands to 1.4 meters for “performance mode,” which doubles its top speed to 90 kilometres (56 miles) per hour.

The EV can fit two people sitting in tandem, or could be used for last-mile delivery or other businesses, the company said.

The CT-2 weighs in at 450 kilograms (0.5 tons), or less than the battery in a Tesla Model 3.

The CT-2 will cost 16,000 euros ($17,400) before taxes and Formoza said major carmakers have created space for startups like City Transformer by shifting away from smaller cars.

City Transformer is lobbying the EU for subsidies for smaller EVs like the CT-2 that are currently available for larger models, Formoza added.