Are eVTOLs a Takeoff Growth Stock for the Long Run?
The sci-fi, futuristic vision of flying cars that we imagined is almost here. As our urban areas continue to grow the population increases, so does traffic. This technology of eVTOL aircraft could be a necessity for travel.
You might be asking, what are eVTOLs and how do they function?
eVTOL is an acronym for electric vehicle take off & landing [aircraft]. These aircraft are power by electric; to hover, take off, and land vertically.
There vehicles are electric and function similar to drones. Large omnidirectional fans help the aircraft move in any direction and even takeoff vertically.
Different companies use their own unique designs, so it depends on the developers on what each vehicle looks like and how they function, but most seem to resemble the form of a drone.
The designs can vary from featuring: rotor systems, electric propulsion, and even one company has developed a fixed-wing aircraft system.
eVTOL Used as "Air-Taxis"
In order for eVTOLs to function as an ‘air-taxi,’ these aircraft much be able to do vertical takeoff . Another important aspect in eVTOL flight function is the ability to transition between vertical and forward flight.
After Uber cemented themselves as the leader in taxi and delvery services, they are now attempting to build their third business model called Uber Elevate’s
According to Uber Elevates website says, "Announced December 2020, Joby Aviation will acquire Uber Elevate. The two parent companies have agreed to integrate their respective services into each other’s apps, enabling seamless integration between ground and air travel for future customers. This deal allows Uber to deepen our partnership with Joby and accelerate the path to market for these technologies and moves the Elevate team to Joby." [Uber Press Release]
Which Leads Us To eVTOL Stocks...
Joby Aviation Inc [JOBY]
First stock we will talk about is Joby Aviation Inc [JOBY]. The company was founded in 2009 and is headquartered in Santa Cruz, California. Joby Aviation, Inc., a vertically integrated air mobility company, engages in building an electric vertical takeoff and landing aircraft optimized to deliver air transportation as a service.
As mentioned be in the previous paragraph, back in December 2020 Joby received an $75 million dollar investment from Uber, as it acquired Uber Elevates and expands their partnership.
According to Joby's website, "Powered by six electric motors, our aircraft takes off and lands vertically, giving us the flexibility to serve almost any community. Flying with us might feel more like getting into an SUV than boarding a plane."
"Our aerial ride-sharing service will combine the ease of conventional ride-sharing with the power of flight. A green alternative to driving that's bookable at the touch of an app."(Joby's Website)
Joby says their eVTOL aircraft can:
- Vertical takeoff and landing
- Zero Operating Emissions
- Carry One pilot + Four riders
- 150 Mile Max Range
- 200 MPH Top Speed
- 10+ years of development
With over 1,000 test flight and ten years of development, Joby Aviation has been designed to meet the safety standards without compromise. These safety standards are set by the FAA and other global aviation regulators.
Joby is now engaged in a multi-year testing program with the FAA to certify their vehicles for commercial operations.
Here are some details about the Joby Aviation In stock $JOBY:
- Current Price: $5.23 (as of July 26th)
- Market Cap: 3.21 Billion
- Free Float Market Cap: 1.83 Billion
- Free Float: 344.88 Million
- Shares Outstanding: 606.46 Million
- 52 Week High: $14.33
- 52 Week Low: $3.61
Joby is growing company and is considered a growth stock and is not earning a profit. With a net income of -$180.32 million in 2021
The company balance sheet looks promising, with $1.49 billion in assets and $171.6 million in liabilities. With a debt to asset at 11.53%
Archer Aviation Inc [ACHR]
The second stock we will be discussing is Archer Aviation Inc [ACHR]. The company was formerly known as Atlas Crest Investment Corp. and changed its name to Archer Aviation Inc; was incorporated in 2018 and is headquartered in Palo Alto, California.
This urban air mobility company, engages in designs, develops, manufactures, and operates electric vertical takeoff and landing aircraft to carry passengers.
Inside the aircraft is marketing the flight experience towards a designer luxury type voyage. With spacious legroom, perfectly placed seating, and amazing views; with its wrap around window design.
Their first model release is called Maker. Here are some of the specs of the aircraft:
- 12 Independent Power and Propulsion Motors
- Cruise speeds of up to 150 mph
- At Only 45 DBA virtually inaudible while flying overhead.
- Range 60 Miles
- 100% Electric Zero Emissions
Archer Aviation has also inked a partnership deal with United Airlines. This partnership includes:
- $1 Billion Purchase Order
- Part of United's 100% Green by 2050 commitment
- 50% CO2 reductions per passenger
- eVTOL aircraft to provide first/last-mile travel at major United hubs
Here are some details about the Archer Aviation In stock $ACHR:
- Current Price: $3.29 (as of July 26th)
- Market Cap: 796.24 Million
- Free Float Market Cap: 422.82 Million
- Free Float: 128.32 Million
- Shares Outstanding: 241.65 Million
- 52 Week High: $10.54
- 52 Week Low: $2.61
Archer is not profitable as of yet and has an Net Income of $-59.2 Million in 2022 Q1. Its balance sheet shows that the company has $737 million in assets and $74.2 million in liabilities; with a 10% debt to asset in 2022 Q1. Another eVTOL growth stock to keep an eye on.
Vertical Aerospace Ltd [EVTL]
Vertical Aerospace Ltd. is a company that was founded in 2016 and is headquartered in Bristol, the United Kingdom.
This eVTOL company engages in designing, manufacturing, and selling electric aircraft. It offers first eVTOL model is called the VX4, an electric vertical take-off and landing vehicle.
According to Vertical Aerospace's website, "Our globally certified aircraft will be used by airlines and local transport partners and will be the first commercial aircraft most people will fly on that has a zero carbon footprint."
Here are the specs of the VX4:
- Top Speed 202 MPH
- Range 100+ Miles
- Capacity 5 people (1x pilot) (4x passengers)
- Zero Emissions
- EASA/CAA Safety Certified
- Cruises at (45db) and Hovers at (60db) making it 100x quieter than a helicopter
They plan to apply the VX4 for different usages, such as passenger use, medivac use and cargo use.
Vertical Aerospace has partners with a handful of companies; with the likes of: American Airlines, Honeywell, Rolls Royce, Virgin Atlantic, and more.
Here are some details about the Vertical Aerospace Ltd [EVTL] stock:
- Current Price: $8.09 (as of July 26th)
- Market Cap: 1.69 Billion
- Free Float Market Cap: 366 Million
- Free Float: 45.25 Million
- Shares Outstanding: 209.14 Million
- 52 Week High: $18.44
- 52 Week Low: $2.72
As of FY 2021 this company as a Net Income of $-245.2 million. The balance sheets show $233 million in assets and $171.77 million in liabilities as of FY 2021.
The last stock we will briefly go over is Embraer S.A. (ERJ)
Embraer S.A. is located in São Paulo, Brazil. They design, develop, manufacture, and sell aircrafts and systems in Brazil, North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally.
It operates through Commercial Aviation; Defense and Security; Executive Jets; Service & Support; and Other segments.
This company is well established since 1969 and not exclusive to just eVTOLs as the other companies we mentioned before. This is a company that is adding to its portfolio by expanding with a electric aircraft division.
Here are some details about the Embraer S.A. [ERJ] stock:
- Current Price: $8.66 (as of July 26th)
- Market Cap: 1.59 Billion
- Free Float Market Cap: 1.59 Billion
- Free Float: 183.66
- Shares Outstanding: 183.66 Million
- 52 Week High: $19.40
- 52 Week Low: $7.91
Hopefully this blog post helped get some more insight and spark thought of the future of electric flight transporation. Do your own research on these companies, buy a bag of these growth stocks and manifest the hustle.