Envirotech Vehicles, Inc. (NASDAQ:EVTV) Reaffirms Commitment to American Manufacturing Amid Shifts in Federal EV Policies

Rhea-AI Summary

Envirotech Vehicles (NASDAQ:EVTV) reaffirms its commitment to American manufacturing amid recent policy changes affecting the EV industry. The company emphasizes its focus on commercial electric vehicles, including vans, trucks, and school buses, highlighting their significant advantages over traditional vehicles.

The company's electric school buses qualify for federal funding under the EPA's Clean School Bus Program, offering up to 50% reduction in fuel and maintenance costs compared to diesel buses. EVTV's vehicles also contribute to carbon credit programs, creating additional revenue streams for fleet operators.

President and CFO Jason Maddox emphasizes EVTV's strategy to align with strengthening U.S. manufacturing and reducing foreign supply chain dependence. The company highlights its position in the commercial EV sector, citing advantages such as higher ROI compared to consumer EVs, immediate cost savings, and market stability due to less dependence on consumer incentives.

Positive

• Qualifies for EPA's Clean School Bus Program funding
• Up to 50% reduction in fuel and maintenance costs for school buses
• Additional revenue potential through carbon credit programs
• Strong positioning in growing e-commerce logistics fleet market
• Focus on domestic manufacturing reduces exposure to global supply chain disruptions

Negative

• Exposure to changing federal EV policies
• Potential impact from shifts in government incentives

Electric Vehicle Technology, Innovation & Sustainability

OSCEOLA, AR / ACCESS Newswire / February 10, 2025 / Envirotech Vehicles, Inc. (NASDAQ:EVTV), a leading provider of electric commercial vehicles, acknowledges the recent policy changes under the Trump administration concerning the Green New Deal, electric vehicle mandates, and the $7,500 consumer vehicle credit. While these developments primarily impact the consumer EV market, EVTV remains confident in the robust growth potential of electric commercial vans, trucks, and school buses.

Strategic Alignment with American Manufacturing Initiatives

President and CFO Jason Maddox emphasized EVTV's strategy to align with the Trump Administration's focus on strengthening U.S. manufacturing and reducing reliance on foreign supply chains:

"With over two decades in the defense contracting sector, I've witnessed firsthand the importance of building a strong American industrial base. At Envirotech, we are fully committed to producing American-made vehicles, supporting domestic manufacturing, and creating jobs for American workers. This approach not only aligns with the Trump Administration's priorities but ensures that Envirotech remain resilient in the face of global trade tensions and supply chain disruptions."

Advantages of Electric Commercial Vehicles

Electric commercial vehicles offer significant advantages over gasoline or diesel-powered fleets, particularly in terms of return on investment (ROI), operational savings, and sustainability incentives.

1. EPA's Clean School Bus Program and Emission Reductions

Envirotech's electric school buses qualify for federal funding under the EPA's Clean School Bus Program, which provides rebates and grants to replace aging diesel buses with zero-emission alternatives. Diesel school buses contribute significantly to air pollution and respiratory issues among children, particularly in urban and suburban school districts. The switch to EV school buses not only benefits student health but also reduces operating costs for school districts.

• Lower Maintenance & Fuel Savings - EV school buses reduce fuel and maintenance costs by up to 50% compared to diesel buses.

• Improved Air Quality in Schools & Communities - Eliminating diesel exhaust helps reduce asthma, bronchitis, and other respiratory conditions in school-aged children.

2. Carbon Credit Capture & Emission Reduction Incentives

Envirotech's vehicles contribute to carbon credit programs that allow fleet operators and businesses to earn credits by reducing CO₂ emissions. These credits can be sold or traded, creating an additional revenue stream for fleet operators. Cities adopting low-emission zones and corporate ESG (Environmental, Social, Governance) mandates are increasingly investing in electric commercial vehicles to meet carbon neutrality goals.

3. Strong Economic Benefits for Logistics Fleets

With the continued expansion of e-commerce, the demand for first-mile and last-mile delivery vehicles has skyrocketed. Logistics companies, including Amazon, Walmart.com, and third-party logistics providers (VSPs), are outsourcing delivery routes to small fleet operators. Envirotech's electric vans and trucks are designed to meet the needs of these growing logistics providers by offering:

• Lower cost per mile than gasoline or diesel-powered vehicles.

• Predictable and reduced fuel costs, given fluctuating gas prices.

• Overnight charging convenience at fleet depots, ensuring vehicles are fully charged and ready for daily routes.

4. Higher ROI vs. Consumer EVs

While consumer electric vehicles rely heavily on government tax credits and mandates, commercial electric vehicles offer a much higher return on investment due to commercial vehicle's heavier fuel consumption and long daily routes. Commercial EVs provide:

• Immediate cost savings on fuel & maintenance compared to diesel trucks and buses.

• Long-term financial incentives through carbon credits and reduced operational costs.

• Greater market stability, as fleet buyers are less dependent on consumer incentives.

Positioned for Success in Today's Political Climate

Envirotech's focus on domestic manufacturing and job creation aligns seamlessly with the Trump Administration's push for "Made in America" manufacturing policies. As trade wars and tariffs continue to impact imports from China, Canada, and Mexico, Envirotech is prioritizing U.S. based assembly and production facilities to:

• Reduce exposure to global supply chain disruptions and tariff-related price increases.

• Create high-paying American jobs and strengthen the national workforce.

• Align with federal policies favoring U.S. manufacturing and job creation.

"As a defense contractor, I've spent my career helping to build the American industrial base," added Jason Maddox. "With Envirotech, we are committed to hiring American workers, investing in American innovation, and securing a future for electric transportation that benefits both businesses and communities."

Investor Confidence & Market Outlook

Despite shifting federal policies impacting the consumer EV sector, commercial electric vehicles remain one of the fastest-growing segments in transportation. Envirotech is well-positioned to benefit from:

• Surging demand in e-commerce logistics fleets and last-mile delivery networks.

• School districts transitioning to electric buses under EPA & state initiatives.

• Corporate and municipal carbon reduction commitments supporting electric fleets.

• Government incentives for U.S. manufacturing, which bolster American-made vehicle production.

Envirotech's business model is resilient, designed to thrive in any political or economic environment by focusing on commercial fleet solutions that generate real cost savings and operational efficiencies. The company is actively working on new partnerships and fleet integrations to expand its market share.

About Envirotech Vehicles
Envirotech Vehicles, Inc. (NASDAQ:EVTV) is a technology company dedicated to revolutionizing the electric vehicle landscape by designing and manufacturing electric commercial vehicles that offer sustainable, efficient, and cost-effective transportation solutions. Committed to driving the future of mobility, Envirotech is pushing the boundaries of innovation and sustainability. For more information, visit www.evtvusa.com

Cautionary Statement Regarding Forward-Looking Statements
Statements made in this press release that relate to future plans, events, financial results, prospects, or performance are forward-looking statements. While they are based on the current expectations and beliefs of management, such forward-looking statements are subject to a number of risks, uncertainties, assumptions, and other factors that could cause actual results to differ materially from the expectations expressed in this press release, including the risk that customers may not elect to redeem their voucher to purchase an electric vehicle and the risks and uncertainties disclosed in reports filed by Envirotech Vehicles with the Securities and Exchange Commission, all of which are available online at www.sec.gov. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "will," "estimated," "planned," "expected," "believes," "strategy," "opportunity," "anticipated," "outlook," "designed," and similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by law, Envirotech undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances, or unanticipated events.

Contact:
Envirotech Vehicles, Inc.
Merrick Alpert, Chief Communications Officer
Telephone: (870) 970-3355
Email: merrick@evtvusa.com

SOURCE: Envirotech Vehicles, Inc.

View the original press release on ACCESS Newswire

FAQ

How does EVTV's electric school bus program reduce operating costs?

EVTV's electric school buses reduce fuel and maintenance costs by up to 50% compared to diesel buses, while qualifying for federal funding under the EPA's Clean School Bus Program.

What are the main revenue streams for EVTV's commercial fleet operators?

EVTV's fleet operators can generate revenue through operational cost savings and by earning tradeable carbon credits through emission reduction programs.

How is EVTV addressing potential supply chain disruptions?

EVTV is focusing on domestic manufacturing and U.S.-based assembly facilities to reduce exposure to global supply chain disruptions and tariff-related price increases.

What makes EVTV's commercial EVs more profitable than consumer EVs?

Commercial EVs offer higher ROI due to heavier fuel consumption, long daily routes, immediate cost savings on fuel and maintenance, and carbon credit benefits, while being less dependent on consumer incentives.

How does EVTV's business model align with current federal policies?

EVTV's focus on domestic manufacturing and job creation aligns with 'Made in America' manufacturing policies, while supporting U.S. job creation and reducing foreign supply chain dependence.