Envirotech Vehicles Unveils Exclusive AI Infrastructure Expansion Framework With AZIO AI

Rhea-AI Summary

Envirotech Vehicles (NASDAQ:EVTV) entered an exclusive strategic acquisition framework to acquire 100% of AZIO AI, an AI infrastructure spin-off, to expand EVTV from mobility into data centers, enterprise compute, AI-powered agriculture and drone-enabled systems.

Key facts: AZIO AI reported an $50M+ active sales pipeline during its first two months, resells NVIDIA GPUs and Supermicro-class servers, and the proposed deal is subject to due diligence, definitive agreements, a Form S-4 share registration, and regulatory and shareholder approvals.

Positive

• $50M+ active AZIO AI sales pipeline in first two months
• Proposed acquisition would add an AI compute vertical to EVTV
• AZIO AI resells NVIDIA GPUs and Supermicro-class servers

Negative

• No assurance the proposed transaction will be completed
• Transaction requires due diligence, definitive agreements, Form S-4 registration, and approvals

Key Figures

AZIO AI active pipeline $50M+ Active sales pipeline within first two months of AZIO AI operations

Share price $1.12 Pre-news price vs 52-week range $0.98–$14.90

52-week high discount 92.48% below Price vs 52-week high of $14.90 before this AI framework news

Volume spike 12.72x average Pre-news volume 998,950 vs 20-day average 78,518

52-week low premium 14.29% above Price vs 52-week low of $0.98

Market Reality Check

$0.4050 Last Close

Volume Volume 998,950 is 12.72x the 20-day average of 78,518, signaling elevated pre-news activity. high

Technical Shares trade below the 200-day MA of 1.97 with a pre-news price of 1.12, far under the 14.90 52-week high.

Peers on Argus

Pre-news, EVTV was up 0.9% while peers were mixed: AYRO gained 7.35%, but LOBO, FLYE, ECDA, and CENN fell between -5.14% and -12.34%, suggesting stock-specific rather than broad sector momentum.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 13	Drone production ramp	Positive	-1.7%	AG Drone enters production with deposits and detailed ramp milestones.
Nov 10	Drone deposits win	Positive	+4.9%	Deposits for 80 heavy-capacity drones and long-term revenue targets.
Nov 06	Italy drone LOI	Positive	-6.6%	LOI to deploy heavy-lift drones in Italian agriculture at scale.
Sep 16	Gown contract update	Positive	-21.2%	Delivery of 5M isolation gowns under a 35M-gown U.S. contract.
Sep 15	Heavy-lift drone launch	Positive	-32.8%	Unveiling 1,500-pound lift drone targeting ag and wildfire markets.

Pattern Detected

Recent operational announcements, including drone milestones and government contracts, were often followed by negative price reactions despite seemingly positive business developments.

Recent Company History

Over the last six months, EVTV has highlighted several growth pivots: heavy-lift drones for agriculture and fire protection, deposits for 80 drones with projected division revenue of $150M+ by Q4 2027, and large-scale U.S. government gown production under a 35 million-gown contract. Yet, four of five news events saw negative 24-hour moves. Today’s AI infrastructure combination framework with AZIO AI extends this evolution from mobility and drones into sovereign and enterprise AI compute, layering on another strategic pivot.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-08-18

EVTV has an active S-3/A shelf registration dated 2025-08-18 expiring on 2028-08-18, with no recorded usage yet and not currently effective according to the provided data.

Market Pulse Summary

The stock dropped -15.4% in the session following this news. A negative reaction despite the AI infrastructure expansion framework would fit a pattern where EVTV’s seemingly positive operational updates preceded weak price performance. The proposed 100% acquisition of AZIO AI, with its $50M+ active pipeline, signals another strategic pivot beyond mobility and drones into sovereign AI data centers. Pressure could stem from concerns about execution, integration risk, or potential future use of the existing shelf registration, even though no usage has been recorded in the provided data.

Key Terms

data centers technical

"spanning data centers, enterprise compute, AI-powered agriculture"

Large facilities that house rows of computer servers, storage devices, and networking equipment that store, process and move digital information for websites, cloud services and companies. Like a warehouse filled with powerful computers instead of boxes, they keep online services running around the clock. Investors care because demand, location, energy use and reliability drive revenue, costs, growth prospects and regulatory or operational risks for businesses that own or lease them.

gpu technical

"It resells GPU's from NVIDIA and rack servers from Industry leader Super Micro"

A GPU (graphics processing unit) is a specialized computer chip designed to handle many calculations at once, originally for rendering images and video but now widely used for tasks like artificial intelligence, data analysis and high-performance computing. Investors watch GPU demand and prices because strong sales often signal growth for chip makers and their customers, affect profit margins and capital spending, and can forecast wider trends in gaming, AI adoption and cloud services.

computer-vision models technical

"Computer-vision models for crop health analysis, disease detection, and yield"

Software systems trained to analyze and interpret images and video so machines can 'see' and recognize objects, faces, text, motion and patterns much like a camera plus a human brain. Investors care because these models enable products and services—from automated inspections and medical image analysis to safety features and customer analytics—that can create new revenue, cut costs and build competitive advantage, while introducing risks around accuracy, privacy and regulation.

edge devices technical

"from drones, sensors, and edge devices into actionable intelligence"

Edge devices are the small computers, sensors and network boxes that collect and sometimes process data where it is created — for example a factory sensor, a delivery-tracking device, or a smart camera. They matter to investors because moving work to these local devices can cut delays, lower cloud costs, enable new real-time services and create recurring hardware and software revenue streams, while also introducing operational and security risks.

hyperscaler infrastructure technical

"where hyperscaler infrastructure is limited, strategically undesirable"

Hyperscaler infrastructure is the huge, standardized network of data centers, servers, storage and networking that supports massive cloud computing and online services, like a national highway and power grid for digital activity. For investors it matters because companies that build or use hyperscaler capacity can scale rapidly, lower per-unit costs, and support high-growth applications, while also creating financial risks tied to large capital spending and dependence on a few dominant providers.

form s-4 regulatory

"Registration of shares via a Form S-4"

A Form S-4 is a legal document that companies file with the government to announce and explain a major business move, such as a merger or acquisition. It provides detailed information to help investors understand how the deal might affect the company's value and future prospects, similar to a detailed blueprint that clarifies the impact of a significant change.

sovereign governments regulatory

"Sovereign governments establishing domestic AI and data-center capacity"

Sovereign governments are the national authorities that set a country’s laws, taxes, budgets and public policies, including elected leaders and permanent institutions like ministries and central banks. Investors watch them because their decisions — about borrowing, regulation, spending and monetary policy — directly affect economic growth, company profits, bond safety and currency values; think of a government as both the rule-maker and coach whose calls change how markets play out.

ai training and inference technical

"Enterprise-grade GPU servers optimized for AI training and inference"

Training is the process of teaching a machine-learning system by feeding it lots of examples so it learns patterns, like a chef practicing a new recipe until it knows the steps. Inference is when the trained system uses what it learned to make predictions or decisions in real time, like the chef cooking a dish for a customer. Investors care because training drives upfront costs, data and infrastructure needs, and model quality, while inference determines day-to-day performance, scalability, revenue potential and ongoing operating costs and risks.

AI-generated analysis. Not financial advice.

Proposed combination positions EVTV at the forefront of sovereign and emerging-market AI infrastructure, spanning data centers, enterprise compute, AI-powered agriculture, and drone-enabled systems, anchored by AZIO AI's $50M+ active pipeline within its first two months of operation

HOUSTON and NEWPORT BEACH, Calif., Dec. 16, 2025 (GLOBE NEWSWIRE) -- via IBN -- Envirotech Vehicles, Inc. (NASDAQ:EVTV) ("EVTV" or the "Company") today announced that it has entered into an exclusive strategic acquisition framework with AZIO AI Corporation (www.azioai.ai), a rapidly scaling AI infrastructure company delivering high-performance compute, modular data-center solutions, and applied AI platforms for governments, institutions, and enterprises worldwide.

The framework outlines a proposed combination that would accelerate EVTV's evolution into a multi-vertical AI infrastructure platform, extending beyond mobility into AI compute layers that power real-world systems, including sovereign data centers, enterprise AI workloads, AI-enabled agriculture, and drone operations.

A Purpose-Built Spin-Off With Real Infrastructure DNA

AZIO AI was formed as a strategic spin-off from AZIO Corporation, an established technology company with long-standing experience in enterprise hardware distribution and infrastructure solutions.

Through its origins, AZIO AI benefits from:

• Direct exposure to enterprise-grade server and GPU platforms
• Operational experience as a distributor of Supermicro-class infrastructure
• Established supplier, logistics, and integration relationships
• A commercial mindset rooted in real deployments, not theoretical research

This lineage differentiates AZIO AI from early-stage AI ventures by grounding the platform in hardware execution, system integration, and enterprise delivery from inception.

AZIO AI was spun out as a separate, independent company to focus exclusively on AI compute, data-center infrastructure, and applied AI systems, allowing it to move quickly in global markets while maintaining enterprise-grade standards.  It resells GPU's from NVIDIA and rack servers from Industry leader Super Micro, and has a team that has diverse experience in the AI data center space.

A Bold Evolution: From Mobility to Applied AI Infrastructure

EVTV has built its platform around real assets, vehicles, drones, and infrastructure, serving essential economic functions. As artificial intelligence becomes a foundational intelligence layer beneath physical systems, EVTV is intentionally expanding into AI infrastructure that connects hardware, data, and decision-making.

The proposed integration of AZIO AI reflects this evolution: pairing EVTV's operational footprint in mobility and drone platforms with an AI compute layer capable of supporting mission-critical, real-world applications across agriculture, logistics, healthcare, public services, and national infrastructure in developing countries.

EVTV's existing electric vehicle and advanced mobility operations are expected to continue as active platforms, while AZIO AI would anchor a new AI-led growth engine within the Company.

AI Compute Behind Agriculture and Drone Systems

AZIO AI's infrastructure is designed to sit behind physical systems, converting raw data from drones, sensors, and edge devices into actionable intelligence.

A key focus area is AI-powered agriculture, where AZIO AI provides the compute backbone enabling advanced drone-based agricultural operations at scale.

End-to-End AI Infrastructure for Agriculture

AZIO AI supports:

• High-resolution aerial data ingestion from agricultural drone fleets
• Computer-vision models for crop health analysis, disease detection, and yield forecasting
• Edge-to-data-center pipelines enabling local or sovereign data processing
• Real-time analytics to guide irrigation, fertilization, and precision spraying
• National-scale architectures designed for ministries of agriculture, cooperatives, and regional farming systems

For developing and emerging economies, where agriculture remains a critical economic sector, this approach directly supports food security, productivity, and resource efficiency, aligning AI deployment with national policy priorities.

Built for Emerging AI Economies, Not Hyperscaler Dependence

AZIO AI was purpose-built to serve countries and institutions building AI capability from the ground up, particularly where hyperscaler infrastructure is limited, strategically undesirable, or economically impractical.

Its platform supports:

• Sovereign governments establishing domestic AI and data-center capacity
• Universities and research institutions building national AI talent pipelines
• Enterprises and cooperatives requiring scalable AI compute tied to physical operations
• Public-sector modernization initiatives across agriculture, healthcare, education, and environmental monitoring

With active initiatives tied to AI data-center development in the Philippines and broader engagement across emerging markets, AZIO AI operates at the intersection of policy, infrastructure, AI, and execution.

Early Traction and Scalable Execution

During its initial commercial ramp, AZIO AI generated an active sales pipeline exceeding $50 million, reflecting early engagement from government-adjacent programs, enterprises, research institutions, and infrastructure operators.

AZIO AI delivers:

• Enterprise-grade GPU servers optimized for AI training and inference
• Modular AI compute clusters deployable in phases
• Data-center-ready infrastructure supporting centralized and regional deployments

This execution-first approach enables AI infrastructure to scale in lockstep with real-world systems, including drone fleets, farms, campuses, and municipalities.

Leadership Alignment for the Next Phase

Under the framework, AZIO AI's leadership team would be positioned to play a central role in shaping EVTV's long-term AI and infrastructure strategy, subject to completion of the transaction.

Framework Overview

The exclusive framework outlines a path toward a potential merger transaction under which EVTV would acquire 100% of AZIO AI, subject to:

• Completion of due diligence
• Execution of definitive agreements
• Registration of shares via a Form S-4
• Regulatory and shareholder approvals

There can be no assurance that a definitive transaction will be completed.

Executive Commentary

"This framework reflects EVTV's belief that the next phase of infrastructure is intelligent and interconnected," said Jason Maddox, Executive Chairman of Envirotech Vehicles. "AZIO AI's roots in enterprise hardware and its focus on applied AI make it a compelling platform as we explore expansion into AI infrastructure."

"AZIO AI was intentionally built as a spin-off to focus on AI compute and real-world deployment," said Chris Young, Chief Executive Officer of AZIO AI. "Our background in enterprise infrastructure distribution, including Supermicro-class systems, combined with our work in agriculture, drones, and emerging markets, positions us to deploy AI where it creates immediate impact."

About Envirotech Vehicles, Inc.

Envirotech Vehicles, Inc. (NASDAQ: EVTV) operates asset-backed technology platforms spanning electric vehicles, advanced mobility, drones, and infrastructure. The Company focuses on disciplined execution and long-term growth across critical technology verticals.

About AZIO AI Corporation

AZIO AI Corporation (www.azioai.ai) is an independent AI infrastructure company formed as a spin-off from AZIO Corporation. The company delivers enterprise-grade GPU systems, modular AI compute clusters, and scalable data-center infrastructure designed for mission-critical workloads, supporting governments, institutions, and enterprises deploying AI across physical and digital systems.

Cautionary Statement Regarding Forward-Looking Statements
Statements made in this press release that relate to future plans, events, financial results, prospects, or performance, including, but not limited to, statements regarding the receipt of payment by EVTV from Studio Baffetti and Venture Air Solutions for the drone purchases, EVTV's ability to obtain necessary governmental approvals and certifications, EVTV's ability to expand successfully into Europe, EVTV's projected drone division revenue and manufacturing capacity, the performance of EVTV's drones and the estimated timeline for the deployment of EVTV's drone program, 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 statements that are not purely statements of historical fact and the risks and uncertainties disclosed in reports filed by EVTV with the U.S. 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, EVTV undertakes no obligation to update or revise any forward-looking statements to reflect new information, changed circumstances, or unanticipated events.

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FAQ

What is EVTV announcing with AZIO AI on December 16, 2025?

EVTV announced an exclusive acquisition framework to potentially acquire 100% of AZIO AI to expand into AI infrastructure.

How large is AZIO AI's early commercial pipeline for EVTV investors?

AZIO AI reported an active sales pipeline exceeding $50 million during its first two months of operation.

What approvals are required for EVTV to complete the AZIO AI acquisition?

The framework lists due diligence, execution of definitive agreements, Form S-4 share registration, and regulatory and shareholder approvals.

Will EVTV continue its vehicle and drone operations after the AZIO AI deal?

EVTV stated its existing electric vehicle and mobility operations are expected to continue while AZIO AI would anchor a new AI-led growth engine.

What AI infrastructure products does AZIO AI supply that matter to EVTV shareholders?

AZIO AI delivers enterprise-grade GPU servers, modular AI compute clusters, and data-center-ready infrastructure reselling NVIDIA GPUs and Supermicro-class servers.

Which markets does the EVTV and AZIO AI combination target?

The proposed combination targets sovereign and emerging markets, including national agriculture, governments, universities, and enterprises in developing economies.