Vertical Aerospace Ltd (NYSE: EVTL) kicked off the week by soaring high on the New York Stock Exchange. The electric aviation tech company is up by over 47 per cent.
This stock surge can be attributed to a few different factors.
Firstly, Vertical just secured a much-needed financing deal with its lender Mudrick Capital. It will give the company US$50 million to continue developing its flagship aircraft. Also, it has enabled Vertical to convert US$130 million of debt into equity, thereby providing Mudrick with a major stake in the form of convertible notes, at US$2.75 per share.
“The additional equity and stronger balance sheet will enable us to fund the next phase of our development programme and deliver on our mission to bring the amazing electric aircraft to the skies,” founder Stephen Fitzpatrick said in a statement.
Secondly, Vertical recently completed the first successful piloted test flight of its VX4 electric aircraft prototype. The news follows the aviation company securing a flight permit from the UK Civil Aviation Authority. Additional flight tests will soon be underway in Britain.
“The aircraft performed absolutely brilliantly and was really stable in the hover,” Simon Davies, the test pilot, described. It has eight carbon fibre propellers that tilt to change flight direction.
Thirdly, many investors currently have a bullish outlook for air taxi stocks. Researchers from Morgan Stanley (NYSE: MS) have predicted that this market will grow immensely and could be valued at up to US$1.5 trillion by 2040. As Henry Ford once said many years ago, “Mark my words: a combination airplane and motorcar is coming.”
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Multiple air taxi stocks are up right now
Archer Aviation Inc (NYSE: ACHR), developer of the “Midnight” air taxi, has ascended by over 25 per cent today. It is being developed to make multiple back-to-back flights at a distance of up to 50 miles.
Meanwhile, Joby Aviation Inc (NYSE: JOBY) surged by nearly 18 per cent Monday. Toyota Motor Corp (NYSE: TM) agreed to invest half a billion into this air taxi specialist last month. This development drew a great deal of attention to the company and the broader market it is active in.
Blade Air Mobility Inc (NASDAQ: BLDE), Eve Holding Inc (NYSE: EVEX) and EHang Holdings Ltd – ADR (NASDAQ: EH) are three other air taxi stocks looking shiny on American exchanges at the moment.
Like Morgan Stanley, Delaware’s analytics firm Global Market Research (GMR) foresees a robust compound annual growth rate of 20 per cent for the international air taxi market. It was worth around US$2.3 billion last year and will have a valuation exceeding US$14 billion by 2032, GMR predicted in September.
Air Taxi stocks are taking off vertically…$SRFM Surf Air Mobility +29.43%$ACHR Archer Aviation +25.85%$EVTL Vertical Aerospace +24.62%$LILMF Lilium N.V. +17.64%$EVEX Eve Air Mobility +15.52%$JOBY Joby Aviation +8.60% https://t.co/wFtYzHHOGA
— Lin (@Speculator_io) November 25, 2024
rowan@mugglehead.com
