AYRO Secures Purchase Order From a Top Three Automotive Manufacturer

Rhea-AI Summary

AYRO (NASDAQ:AYRO) has secured its first purchase order from one of the top three automotive manufacturers in the United States through its partnership with GLV Ventures. This marks the company's initial success in leveraging GLV's low-cost facilities to expand into design and manufacturing projects, representing a new revenue stream. Josh Silverman, AYRO's Executive Chairman, highlighted this as a significant step in diversifying their business model.

AYRO specializes in designing and producing zero emission vehicles and systems, with the AYRO Vanish being their latest product offering. The company focuses on developing sustainable solutions that minimize both carbon emissions and environmental impact.

Positive

• Secured first purchase order from a major U.S. automotive manufacturer
• Successfully expanded into new revenue streams through GLV partnership
• Strategic diversification of business model into design and manufacturing projects

Negative

• None.

Insights

Financial Analyst

This purchase order from a major automotive OEM marks a significant pivot in AYRO's business strategy, potentially opening new revenue streams beyond their traditional EV manufacturing focus. For a micro-cap company with a $5.5M market cap, securing a contract with a top-three U.S. automaker could be transformative. The partnership with GLV Ventures for low-cost manufacturing facilities demonstrates a strategic approach to cost management while expanding capabilities. However, the lack of specific details about the order size, value, or timeline limits the ability to quantify the immediate financial impact. This development could improve AYRO's market position and credibility, though investors should note that execution and scale of the opportunity remain uncertain.

Manufacturing Expert

The collaboration with GLV Ventures to secure manufacturing projects from major OEMs represents a clever strategic shift for AYRO. By leveraging GLV's low-cost facilities, AYRO can potentially compete more effectively in the automotive supply chain while maintaining better margins. This approach could help diversify their revenue streams beyond their core EV products like the Vanish. However, manufacturing for major OEMs requires meeting stringent quality standards and production capabilities. The success of this initiative will largely depend on AYRO's ability to scale operations while maintaining quality control across GLV's facilities.

ROUND ROCK, TX / ACCESSWIRE / December 16, 2024 / AYRO, Inc. (NASDAQ:AYRO) ("AYRO" or the "Company"), a designer and manufacturer of electric, purpose-built delivery vehicles and solutions for micro distribution, micro-mobility, and last-mile delivery, announced today that through its partnership with GLV Ventures (GLV) it has secured its first purchase order from one of the top three automotive manufacturers in the United States.

Josh Silverman, AYRO's Executive Chairman, commented, "This initial purchase order, which is from a top three automotive OEM, not only represents the first new business opportunity that we have secured since partnering with GLV, demonstrating our intention to leverage their low-cost facilities to expand our focus to securing design and manufacturing projects. It is also indicative of our ability to now generate new sources of revenue. We believe that this organic growth initiative is just the first step in diversifying our business and we look forward to providing further updates, when appropriate."

About AYRO

AYRO designs and produces zero emission vehicles and systems that redefine the very nature of sustainability. Our goal is to craft solutions in a way that leaves minimal impact on not only carbon emissions, but the space itself. From tire tread, fuel cells, sound, and even discordant visuals, we apply engineering and artistry to every element of our product mix. The AYRO Vanish is the first in this new product roadmap. For more information, visit www.ayro.com.

Forward-Looking Statements

This press release may contain forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any expected future results, performance, or achievements. Words such as "anticipate," "believe," "could," "estimate," "intend," "expect," "may," "plan," "will," "would" and their opposites and similar expressions are intended to identify forward-looking statements and include the development and launch of the AYRO Vanish. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: AYRO's success depends on its ability to complete the development of and successfully introduce new products; AYRO may experience delays in the development and introduction of new products; the ability of AYRO's suppliers to deliver parts and assemble vehicles; the ability of the purchaser to terminate or reduce purchase orders; AYRO has a history of losses and has never been profitable, and AYRO expects to incur additional losses in the future and may never be profitable; AYRO faces risks associated with litigation and claims; AYRO may be unable to replace lost manufacturing capacity on a timely and cost-effective basis, which could adversely impact its operations and ability to meet delivery timelines; the market for AYRO's products is developing and may not develop as expected and AYRO, accordingly, may never meet its targeted production and sales goals; AYRO's limited operating history makes evaluating its business and future prospects difficult and may increase the risk of any investment in its securities; AYRO may experience lower-than-anticipated market acceptance of its vehicles; developments in alternative technologies or improvements in the internal combustion engine may have a materially adverse effect on the demand for AYRO's electric vehicles; the markets in which AYRO operates are highly competitive, and AYRO may not be successful in competing in these industries; AYRO may become subject to product liability claims, which could harm AYRO's financial condition and liquidity if AYRO is not able to successfully defend or insure against such claims; increases in costs, disruption of supply or shortage of raw materials, in particular lithium-ion cells, chipsets and displays, could harm AYRO's business; AYRO may be required to raise additional capital to fund its operations, and such capital raising may be costly or difficult to obtain and could dilute AYRO stockholders' ownership interests, and AYRO's long term capital requirements are subject to numerous risks; AYRO may fail to comply with evolving environmental and safety laws and regulations; and AYRO is subject to governmental export and import controls that could impair AYRO's ability to compete in international market due to licensing requirements and subject AYRO to liability if AYRO is not in compliance with applicable laws. A discussion of these and other factors with respect to AYRO is set forth in our most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q. Forward-looking statements speak only as of the date they are made and AYRO disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For investor inquiries:
CORE IR
investors@ayro.com
516-222-2560

SOURCE: AYRO, Inc.

View the original press release on accesswire.com

FAQ

What is the significance of AYRO's recent purchase order from the top three automotive manufacturer?

The purchase order represents AYRO's first new business opportunity through their GLV Ventures partnership and demonstrates their successful expansion into design and manufacturing projects, marking a new revenue stream for the company.

How is AYRO (NASDAQ:AYRO) diversifying its business model in 2024?

AYRO is diversifying by leveraging its partnership with GLV Ventures to secure design and manufacturing projects, as evidenced by their recent purchase order from a major automotive manufacturer.

What is the AYRO Vanish and how does it fit into the company's strategy?

The AYRO Vanish is the company's latest zero emission vehicle, representing the first product in their new product roadmap focused on sustainable transportation solutions.

How is AYRO's partnership with GLV Ventures benefiting the company?

The GLV Ventures partnership provides AYRO access to low-cost facilities, enabling them to expand their focus to securing design and manufacturing projects and generate new revenue sources.