Envirotech Vehicles (EVTV) Stock Soars 442% After Nvidia GPU Contract News

TLDR

• Envirotech Vehicles (EVTV) jumped 442% to $2.51 Monday, then rose to $3.16 after hours on 761 million shares traded.
• Company plans to merge with Azio AI at $3 reference price, valuing Azio at $480 million enterprise value.
• Azio secured binding $107 million order for 256 Nvidia B300 GPUs from Southeast Asian government with 30% deposit expected soon.
• Deal transforms Envirotech from electric vehicle manufacturer to AI infrastructure provider with $200 million additional contract potential.
• Shareholder meeting scheduled January 20 will vote on transaction that remains non-binding.

Envirotech Vehicles delivered one of Monday’s biggest percentage gains. Shares closed at $2.51, up 442% from Friday’s close.

Envirotech Vehicles, Inc., EVTV

The microcap stock traded 761 million shares during the session. After-hours activity pushed the price to $3.16.

The catalyst was a merger announcement with Azio AI. The proposed deal uses a $3 per share reference price for EVTV.

That reference point values Azio AI at $480 million enterprise value. The figure requires confirmation through independent third-party valuation.

Chief Operating Officer Elgin Tracy described the letter of intent as a disciplined approach to strategic evolution. But investors got more excited about what Azio brings to the table.

$107 Million GPU Contract Drives Interest

Azio AI announced a binding purchase order worth $107 million. The contract covers 256 Nvidia B300 GPUs.

These chips handle AI model training and deployment. A Southeast Asian government placed the order.

Azio expects to receive 30% deposit within weeks. Co-chief executive Chris Young called it proof of deploying secure AI infrastructure at scale.

The company also flagged regional expansion opportunities. Government initiatives across Southeast Asia could generate up to $200 million in additional revenue.

Those contracts haven’t closed yet. But the pipeline suggests ongoing business potential beyond the initial order.

Business Transformation in Play

The merger would completely reshape Envirotech’s operations. The company currently manufactures electric vans and buses.

After the deal, it becomes an AI infrastructure company. That shift explains Monday’s trading frenzy.

Envirotech has a market cap under $10 million. The proposed contracts dwarf that valuation.

The stock trades at 0.3x sales currently. Technical indicators show price action breaking above major moving averages.

Monday’s range stretched from $1.01 to $2.62. That volatility is standard for penny stocks on major news.

The 50-day relative strength index sits around 59. That reading suggests potential for continued momentum.

Critical Vote Ahead

Shareholders face a key decision on January 20. The annual meeting starts at 9:00 a.m. Pacific Time.

The meeting was previously postponed due to lack of quorum. Votes must be cast by January 19 at 11:59 p.m. Eastern Time.

The outcome determines if this deal progresses. Right now, the merger agreement remains non-binding.

Terms, pricing, and timing could change. The entire transaction could also collapse.

Envirotech receives no coverage from Wall Street analysts. That leaves investors without professional guidance on valuation.

Several risks remain active. The $107 million order needs to convert to actual cash flow.

Additional contracts depend on finalization. And the EVTV-Azio agreement could fall through since it’s non-binding.

The January 20 shareholder vote represents the next major milestone for this stock.

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