Envirotech Vehicles shares experienced a dramatic increase on Monday, rising more than fourfold. This surge followed the Nasdaq-listed company's announcement of a preliminary letter of intent to merge with Azio AI. The proposed merger sets a reference price of $3 per share.
Investor enthusiasm was also driven by news that Azio has secured a $107 million contract from a government in Southeast Asia. Chris Young, co-chief executive of Azio, stated that the contract "demonstrates our ability to deploy secure, mission-critical AI infrastructure at scale."
Despite the significant rally, EVTV stock is currently trading well below its price from early 2025. The potential merger would shift Envirotech Vehicles from an electric vehicle manufacturer to a business with artificial intelligence exposure.
The $3 reference price suggests considerable potential upside from current trading levels. The government contract provides near-term revenue visibility and adds credibility to the merger's strategic rationale.
On Monday, these developments generated substantial market speculation and trading momentum. The stock's price movement pushed it decisively above major moving averages, including the 50-day, 100-day, and 200-day averages.
Technical indicators show the medium-term relative strength index remains around 59. Envirotech Vehicles currently trades at 0.3 times sales with a market capitalization under $10 million.
It should be noted that Envirotech Vehicles does not currently receive coverage from Wall Street analysts. This absence means institutional capital may not sustain investment, leaving individual investors to independently assess risks and valuation.