Latest news with #eVTOL
Malaysia Sun
a day ago
- Business
- Malaysia Sun
Letter from China: Dream of
by Xinhua writer Li Yilin SHANGHAI, June 18 (Xinhua) -- If a city could speak, Shanghai would regale you with a story of dramatic change. As one of China's key economic and tech hubs, visitors have the opportunity to experience all the latest innovations here. However, the sight of an aircraft with gull wings still took me by surprise when its developer was showcasing a futuristic aerial taxi concept -- that is now coming soon. The sleek, silver-white actual version of the E20 electric vertical take-off-and-landing (eVTOL) aircraft occupied almost the entire demonstration hall at Shanghai TCab Technology Co., Ltd. in Minhang District -- a breeding center for Shanghai's sci-tech industries. Noting that it represents China's bold leap into the third dimension of mobility, TCab's Vice President and Brand Director Xu An pointed to the aircraft and declared proudly, "It is the future of urban transportation." As Xu gestured toward the cockpit, she invited me to sit in it. The touch of the console and the smell of the genuine leather seats were so vivid, but felt surreal -- 40 minutes ago, I was taking a normal taxi from downtown Shanghai to TCab. But now, I was boarding this "air taxi," which could apparently make the same journey in less than 20 minutes and would be more comfortable. TCab was founded in 2021, when China's low-altitude economy was revving up for a rapid takeoff, with eVTOL aircraft emerging from the tech buzz to capture national attention at breakneck speed. The company's Chinese name translates to "Time Taxi." It aims to create a green, sustainable digital urban air mobility ecosystem, providing safe and convenient air travel services. At the heart of TCab's innovation is the E20 eVTOL -- a five-seater all-electric aircraft. It boasts a range of 200 kilometers and speeds of up to 320 kilometers per hour, and will cost just four yuan (about 56 U.S. cents) per passenger-kilometer -- comparable to a premium taxi ride, but five times faster. In just four years, TCab completed its B+ round of strategic financing. The maiden flight of the E20 prototype was completed in 2023, and the model is set to obtain its airworthiness type certification in 2027. This year, TCab began construction on its assembly plant in Anhui Province, with planned completion in 2026. The company plans to produce 200 eVTOLs annually, and so far 500 orders have been secured either at home or abroad. I was amazed at TCab's rapid accomplishments. This would not have been possible without the persistence of Yon Wui NG, former chief engineer of Airbus China and now CEO of TCab. Yon has turned the concept of three-dimensional transportation -- his childhood dream -- into a reality. In fact, leading eVTOL companies in China such as Ehang Intelligent and AutoFlight have achieved phased results. "What does TCab rely on to stand out?" I asked Yon. He answered my question by demonstrating the tilt-rotor mechanism of the E20, which features rotors that tilt between vertical lift and forward thrust. When the eVTOL takes off, the rotor has a vertical lift and then rotates parallel to generate forward thrust, accelerating the aircraft, he explained. Compared with other multi-rotors in the market, the E20 has significantly reduced energy consumption, achieving faster speeds, a longer range and a greater payload capacity, he added. This innovation also solves one aviation dilemma: noise. The E20's tilt-rotor design optimizes power efficiency, making it quieter and more affordable. Overjoyed at the future aerial taxi, I can't help but ponder why Yon, who is Malaysian-Chinese and has stellar international experience in the industry, chose China to be the birthplace of TCab. Speaking Mandarin with a Southeast Asian accent, Yon earnestly explained why it "has to be China." Yon revealed that while eVTOLs from other countries are typically sold for over 4 million U.S. dollars, TCab offers its eVTOL at a selling price of around 2 million U.S. dollars. China's unique ecosystem fuels this progress. "China's leadership in EV batteries and drone algorithms, and the complete supporting supply chain brought by the delivery of China's C919 large passenger aircraft in 2022, gives us a competitive edge," he said. "As an aviation professional, I would never have imagined that the aviation industry could also witness a wave of dramatic change," Yon said. "There is a 'Made in China' advantage we're proud of." Government support is crucial. China's first-mover advantage in its low-altitude economy pilot program -- especially in the Yangtze River Delta -- has ensured the development and construction of both the upstream and downstream sectors of the industry. "The first-mover advantage has afforded us more room for innovation to refine the aircraft, allowing it to enter the market through iterative improvements, gradually," Yon said. In December last year, Shanghai Low-altitude Economic Industry Development Co., Ltd. was established, aiming to promote the construction of supporting facilities, guide social capital investment, and improve the industrial ecosystem for the low-altitude economy. "I can see that local governments in many places are making overall plans and setting up special teams to connect with us. The improvement in efficiency is quite obvious," Yon said. But while government-backed infrastructure and policy frameworks lay the groundwork, the true measure of success lies in democratizing technology. When I bluntly asked if eVTOLs were just high-end toys for the elite and whether they would become accessible to everyone, Yon did the math for me: plans are in place for the E20 to be mass-produced and put into use in 2027. In its future development, the company will focus on expanding the eVTOL's passenger capacity to nearly 20 seats, further reducing the average transaction value from the current four yuan per kilometer so that more population groups can afford to ride in it. Meanwhile, TCab plans to advance the commercialization of urban air mobility services in three phases. Firstly, tourism and sightseeing scenarios will be its entry point, focusing on tour routes in the Yangtze River Delta region. Then it will expand to intercity transportation networks, opening cross-city routes. The third phase will achieve short-distance rapid shuttle functions within urban areas. Looking to the future, Yon said that the company has established overseas branches in Malaysia and Singapore, and it will also deploy in the Middle Eastern market. Yon refers to himself as a bridge for Malaysia-China friendship. The young man who left Malaysia to pursue his aviation dream has now frequented home with pride, bearing the fruits of his achievements in China -- transportation solutions that promise convenience for his fellow Malaysians and the world at large. "I have envisioned it numerous times: people traveling to Semporna or other beautiful islands in Malaysia aboard our E20," he said. At the end of the interview, on a whim, I asked Yon: If he had the chance to write two letters to himself, one 10 years ago and the other 10 years from now, what would he say? "To my younger self: Hold fast to your belief. To my future self: Do not forget your original aspiration," he replied. (Xinhua's correspondents Yi Ling in Beijing and Xu Xiaoqing in Shanghai also contributed to this story.)
Forbes
a day ago
- Business
- Forbes
Archer Aviation: What's Happening With ACHR Stock?
CANADA - 2025/05/13: In this photo illustration, the Archer Aviation logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Archer Aviation is making substantial progress in the evolving electric vertical take-off and landing (eVTOL) sector, reflected in its stock's over 200% surge in the past year. This upward trend is fueled by rising demand for its Midnight air taxi and strategic advancements in its commercialization efforts. The company boasts a robust order book totaling $6 billion, with each Midnight air taxi valued at $5 million, providing clear revenue visibility and underscoring strong market validation for eVTOL technology. Archer is expanding its global presence, exemplified by a recent $250 million agreement with Indonesia, marking its third "Launch Edition" market after the UAE and Ethiopia. These international initiatives are bolstered by multi-hundred million dollar framework agreements with the Abu Dhabi Investment Office (ADIO) to expedite air taxi operations across the UAE, alongside a partnership with Falcon Aviation to develop vertiport networks connecting Dubai and Abu Dhabi. Archer aims to deliver its first piloted Midnight aircraft to the UAE this year, initiating commercial operations later in 2025 and leveraging the region as an initial revenue stream and proving ground for global expansion. Manufacturing capabilities are rapidly advancing, with a 400,000 square-foot eVTOL manufacturing facility in Georgia completed last December. This facility is poised to support order fulfillment and scale operations for a targeted 2025 commercial deployment. On a separate note, see – SoundHound AI: Buy, Sell Or Hold SOUN Stock At $10? The eVTOL market fundamentally addresses urban mobility challenges by offering aircraft significantly quieter than traditional helicopters, enabling urban operations previously restricted due to noise, thereby substantially expanding the addressable market. Furthermore, Archer's strategic partnerships with established aviation operators, including Abu Dhabi Aviation and Ethiopian Airlines, are key to mitigating operational risks and accelerating market penetration. A recent significant development reported by Gulf News is the announcement of a five-country alliance (U.S., UK, Australia, Canada, and New Zealand) to streamline eVTOL certification globally, which could significantly accelerate Archer's international deployment once it secures U.S. FAA type certification. Despite these positive indicators, including an average analyst price estimate of $12 for ACHR stock, suggesting approximately 20% upside potential from its current level of $10, the stock remains below its lifetime high of over $18 recorded in 2021. This disparity can be attributed to several inherent risks. Regulatory hurdles, specifically certification delays, pose a significant threat to revenue generation. Execution risks related to manufacturing and operational complexity also present challenges, and competition from well-funded rivals, such as JOBY, could lead to market share capture. Finally, Archer, like many pre-revenue companies in this capital-intensive industry, has ongoing funding requirements for scale-up. The stock has historically exhibited higher volatility and vulnerability during broader market downturns, losing approximately 90% of its value during the 2022 inflation shock and around 70% during the 2020 COVID-19 pandemic, significantly underperforming the S&P 500 index's peak-to-trough declines of 25% and 34%, respectively, underscoring its speculative nature. Overall, Archer Aviation appears poised for significant growth, yet this potential is accompanied by considerable risks. Now, we apply risk assessment framework while constructing Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Archer Aviation Stock (ACHR) Slips 14%, Yet Analyst Expects 30%+ Upside on eVTOL Plans
Archer Aviation (ACHR) stock took a sharp hit on Friday, with shares sliding 14% after the company announced an $850 million stock offering priced at $10 per share. The deal is expected to bring in $817.1 million in net proceeds and is set to close on June 16, 2025. While the fresh capital will help fuel Archer's growth and aircraft certification efforts, the share dilution clearly weighed on investor sentiment. In response to the funding news, Canaccord Genuity analyst Austin Moeller reaffirmed his Buy rating on Archer but trimmed the price target slightly from $13.50 to $13.00. The new price target implies over 30% upside potential. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The announcement comes on the heels of new executive orders from President Donald Trump to implement an eVTOL (electric vertical takeoff and landing) Integration Pilot Program (eIPP) in the United States. This initiative aims to speed up the rollout of eVTOL aircraft in the U.S. Analyst Backs Archer's eIPP Bid Moeller called the $850 million raise an important move to help Archer take part in the eIPP. This new U.S. government program will support five electric aircraft projects, with the goal of getting them ready to operate before the 2028 Olympic Games in Los Angeles. According to the analyst, Archer's quick action to raise funds shows its clear intent to take part in this eIPP initiative. He believes this extra capital will help the company speed up production and move through the aircraft certification process—both of which are crucial for meeting the program's tight timeline. With this funding round, Archer's total cash balance is expected to rise to around $1.8 billion, based on its first-quarter 2025 figures and past fundraises. Notably, Archer ended the quarter with $1.03 billion in cash and equivalents. Moeller added that this figure does not include $47.5 million available through its at-the-market (ATM) program or up to $400 million in future support from Stellantis, which is expected to help expand production of the Midnight aircraft in Georgia. Moeller believes Archer's strong financial base gives it a clear edge over its rivals. The Department of Transportation has 180 days to choose five aircraft designs for the eIPP, and Moeller sees Archer as a top contender. In his view, Archer stands out as one of the two leading eVTOL developers in the U.S. Is ACHR Stock a Buy, Sell, or Hold? ACHR stock price target of $11.75 implies about 17.62% upside potential. See more ACHR analyst ratings
Yahoo
2 days ago
- Automotive
- Yahoo
At Paris Air Show, eVTOL Industry Preps for Takeoff
It's a bird … it's a plane … it's an … electric vertical takeoff and landing vehicle, or eVTOL (neither of which exactly rolls off the tongue, if you ask us). As Airbus lands major sales and Boeing tries to regain its credibility at this year's Paris Air Show, the upstart not-quite-a-plane, not-quite-a-helicopter, not-quite-cleared-for-liftoff eVTOL industry is climbing closer and closer to achieving its sky-high ambitions. For key US players Joby Aviation and Archer Aviation, the show comes at a critical moment. READ ALSO: US Flexes Golden Share in Nippon Merger With US Steel and AmEx Platinum, Chase Sapphire Reserve Battle for Points in Upgrade Grudge Match Both Archer and Joby went public in 2020 during the SPAC craze. Like a lot of SPAC companies, their appeal to investors was largely speculative — and, five years later, remains somewhat speculative (neither has completed a commercial flight yet). But promises of a Jetsons-esque future of battery-powered flying taxis are starting to look a little more real, especially after a slew of developments in just the past couple of weeks. At the end of May, Joby announced it received $250 million from Toyota, the second tranche of a $500 million investment from the major automaker announced in October (which itself followed a previous $394 million investment from Toyota). Then, last week, came the big news: As part of a broader initiative to promote domestic drone production, the White House issued an executive order to launch a pilot program for the nascent industry. The announcement brought renewed interest to the pair of eVTOL firms, which showed both companies may have climbed a little too close to the sun: Shares of Joby had spiked more than 30% in the days immediately following the announcement of the Toyota cash infusion. That led analysts at Cantor Fitzgerald to quell some of the excitement, downgrading the stock from overweight to neutral while highlighting the company's high cash-burn rate and lack of near-term upside. Archer, meanwhile, seized the opportunity presented by the White House's encouraging executive orders to sell $850 million of stock on Friday, which dragged its share price down 15%. It did recover nearly 4% on Monday, however. Cleared for Takeoff: But what about the question that may matter the most: When will these birds finally fly? It's tough to say. Both companies have scored deals to launch air taxi services in the United Arab Emirates, with Archer saying industry standards in the country should be finalized by next month and Joby saying service could start as soon as early next year. Both companies have also struck deals with major US airlines — Archer with United and Joby with Delta — to eventually ferry passengers to and from major US airports. Archer has also struck a deal to become the official air taxi partner of the 2028 Los Angeles Summer Olympics, which shows the lengths to which Angelenos will go to avoid their infamous traffic jams. This post first appeared on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.
Yahoo
2 days ago
- Business
- Yahoo
Archer Lands $250 Million Indonesia eVTOL Deal
Archer Aviation (NYSE:ACHR) shares are ticking in the green after the eVTOL maker inked a deal with Indonesia's PT. Industri Ketahanan Nasional will introduce up to 50 Midnight aircraftvalued at $5 million apieceto the Southeast Asian archipelago. Under the nonbinding agreement, PT. Warning! GuruFocus has detected 2 Warning Sign with ACHR. IKN will deploy an initial fleet for air taxis, military logistics, cargo delivery and environmental surveillance in and around the new capital, Ibu Kota Nusantara, with an $18 million pilot program providing pilots, technicians, software and booking tools. The partners will work with Indonesia's Directorate General of Civil Aviation to craft regulations and infrastructure ahead of launch. This marks Indonesia as the third market in Archer's Launch Edition global rollout, following deals in the UAE and Ethiopia, and underscores CEO Adam Goldstein's view of the archipelago's island geography and tourism growth as ideal for eVTOL deployment. Archer's recent $850 million capital raise has boosted liquidity to roughly $2 billion, positioning the company to scale production250 Midnights are slated for 2025and build out charging and vertiport networks. The firm is also integrating AI-driven flight operations and safety via partnerships with Palantir (PLTR). Why it matters: Securing a third early-adopter market validates Archer's blueprint for global commercial air mobility ahead of full FAA certification, de-risking expansion and reinforcing its first-mover advantage. Analysts see Archer Aviation trading at about $10.40 today and climbing to an average target of $12.31 over the next yearimplying nearly 19% upside. In a best-case scenario, bullish forecasts stretch as high as $18, while the bears warn the shares could fall to around $4.50 if execution or certification hiccups arise. This article first appeared on GuruFocus. Sign in to access your portfolio
