Envirotech Vehicles, Inc. (EVTV) entered into a Letter of Intent on December 18 2025 to acquire 100 % of the outstanding equity of AZIO AI Corporation, a high‑performance AI infrastructure company. The independent third‑party valuation placed AZIO AI at an enterprise value of roughly $480 million, and the LOI designates AZIO AI as the primary operating entity of the combined company while EVTV’s current leadership will transition to advisory or board roles.
EVTV’s financial position underscores the risk of the transaction. For the nine months ended September 30 2025, the company reported $3.45 million in revenue—up from $1.62 million in 2024—yet posted a net loss of $25.54 million. Its market capitalization was just $3.86 million on December 18, 2025, and the company carries substantial debt, making the $480 million valuation of AZIO AI a highly leveraged move.
AZIO AI, spun off from AZIO Corp, projects revenues between $349 million and $500 million for the current fiscal year and maintains an EBITDA margin of 20‑30 %. The company’s sales pipeline exceeds $50 million, and it leverages NVIDIA GPUs and Supermicro servers to deliver modular, GPU‑based data‑center deployments to government, institutional, and enterprise customers. These metrics position AZIO AI as a high‑growth player in the AI infrastructure market, which has seen comparable firms such as CoreWeave reach multi‑billion‑dollar valuations.
The strategic rationale behind the deal is a dramatic pivot for EVTV. CEO Jason Maddox said the company is “moving from a legacy electric‑vehicle manufacturer to a technology platform that can scale AI infrastructure and related applications.” AZIO AI’s CEO Chris Young noted that the combination would “enable rapid expansion of our GPU‑based compute platform while leveraging EVTV’s public‑market presence.” Together, the companies aim to combine EVTV’s manufacturing and logistics capabilities with AZIO AI’s AI‑compute expertise to serve a broader set of government, institutional, and enterprise clients.
The LOI is a preliminary step; the parties will conduct due diligence, negotiate definitive agreements, and seek shareholder and regulatory approvals before closing. The transaction will require approval from the U.S. Securities and Exchange Commission and relevant antitrust authorities, and the parties anticipate a closing window of 90‑120 days, contingent on the completion of due diligence and regulatory review.
Investor reaction has been sharply negative, with EVTV’s stock falling 15‑32 % on the day of the announcement. Analysts and market participants cited the company’s weak financial footing, the speculative nature of a $480 million acquisition for a $3.86 million market‑cap firm, and the uncertainty surrounding regulatory and shareholder approvals as key drivers of the sell‑off. The reaction reflects concerns that EVTV may lack the resources to successfully integrate and finance a high‑valuation AI platform, despite the potential upside of entering a rapidly expanding AI infrastructure market.
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