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HOUSTON - Envirotech Vehicles, Inc. (NASDAQ:EVTV), known for its electric commercial vehicles, announced today its strategic expansion into the electric drone and watercraft sectors. With a current market capitalization of $5.81 million, and trading below InvestingPro’s Fair Value estimate, the company aims to develop divisions that will focus on commercial and industrial electric drones, as well as electric jet drive systems for watercraft.
This expansion is expected to increase Envirotech’s total addressable market, diversify its revenue streams, and meet the rising demand for eco-friendly mobility solutions in the United States. While the company’s revenue declined 34.7% in the last twelve months, analysts project 47.1% growth for 2025. The targeted markets include the agricultural drone sector, which is projected to hit $1.76 billion by 2030, and the electric watercraft market, forecasted to exceed $1.28 billion by 2032. (InvestingPro subscribers have access to 15+ additional insights about EVTV’s growth prospects.)
Envirotech is positioning itself to tap into the commercial and industrial drone services market, valued at $58.4 billion globally by 2030. The company anticipates new revenue streams in 2025 from its drone and marine product lines, with expected margins of 40-60% on its proprietary jet drive systems and drone service contracts.
Despite a challenging financial health score according to InvestingPro analysis, the company is currently reviewing three strategic acquisitions to accelerate its market entry and plans to harness its cross-sector electric vehicle (EV) platform to scale technology and supply chain efficiencies across various applications. The company maintains a moderate debt level with a debt-to-equity ratio of 0.18 and sufficient liquidity to meet short-term obligations. Envirotech also aims to expand its recurring revenue through drone fleet services and aftermarket watercraft systems.
Jason Maddox, President of Envirotech, stated, "Our strategic entry into electric drones and watercraft represents a transformational inflection point for Envirotech." He highlighted the alignment with global electrification trends, high-margin opportunities, and strong government support as key factors in this strategic move.
While continuing to generate core revenue from its existing commercial EV portfolio, Envirotech also projects topline growth beginning in 2025 from bundled electric drone services and electric jet propulsion systems for various watercraft. With analysts forecasting profitability in the coming year, further details on acquisitions and product launches are expected to be announced later in Q2 2025, with the next earnings report due on May 26, 2025.
This announcement is based on a press release statement and reflects the company’s plans for expansion. Envirotech’s forward-looking statements involve risks and uncertainties, and actual results may differ materially from those expressed in the release.
In other recent news, Envirotech Vehicles has received a notification from the Nasdaq Stock Market regarding non-compliance with the minimum bid price requirement. The company’s common stock failed to maintain a minimum bid price of $1 over a 30-day period, prompting Nasdaq to grant a 180-day window, until September 2, 2025, for Envirotech to regain compliance. Failure to meet this requirement could lead to delisting, although an additional compliance period might be granted if other listing standards are met. In a bid to stabilize its financial standing, Envirotech Vehicles has secured an additional $5 million in funding through a supplemental agreement with YA II PN, Ltd. The agreement includes the issuance of convertible promissory notes, with an initial $3 million tranche already disbursed. The second tranche of $2 million will be contingent upon stockholder approval. The funding aims to bolster Envirotech’s capital, with the company currently holding approximately $3 million in cash and a monthly burn rate of $600,000.
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