Bullish indicating open at $55-$60, IPO prices at $37
LONDON & NEW YORK - Vertical Aerospace [NYSE: EVTL], a leader in zero emissions aviation technology, has initiated testing on its advanced electric Vertical Take-Off and Landing (eVTOL) aircraft, the VX4. The company has completed initial powered ground tests, including propeller balancing at its Flight Test Centre.
In the next phase, Vertical will carry out powered tests of the VX4's propulsion system, which is equipped with proprietary battery packs capable of 1.4 MW of peak power. These tests are designed to measure thrust output, system integration, and structural integrity, ensuring the VX4 adheres to the highest safety standards for future piloted flights.
Once the UK Civil Aviation Authority grants the Permit to Fly, the company will progress to tethered flight tests and then to untethered flights at low speeds. The VX4 prototype boasts a 20% improvement in power-to-weight ratio over its predecessor, potentially reaching cruise speeds of up to 150mph.
David King, Chief Engineer at Vertical, emphasized the importance of these tests in achieving certification for the VX4 and advancing towards piloted flights. He expressed pride in the team's progress, particularly as the aerospace community gathers for the Farnborough Airshow.
The VX4 is developed in collaboration with global aerospace partners and features new propeller technology and battery systems produced at Vertical's state-of-the-art Vertical Energy Centre in the UK. Vertical Aerospace has secured 1,500 pre-orders for the VX4, valued at $6 billion, from customers worldwide, including Virgin Atlantic, American Airlines (NASDAQ:AAL), and Japan Airlines.
The information in this article is based on a press release statement from Vertical Aerospace.
In other recent news, Vertical Aerospace, a key player in electric aviation, has gained an extension of its Design Organisation Approval (DOA) by the UK Civil Aviation Authority (CAA). This development enables the company's engineers to oversee a broader range of technical compliance areas, notably those linked to flight control, avionics, and electrical systems.
The expansion of the DOA reflects the CAA's trust in Vertical's engineering prowess as it approaches Type Certification for its VX4 aircraft.
Vertical Aerospace is now set to work with the CAA to further extend its DOA privileges, which would allow the regulator to rely on Vertical's approvals for specific activities. These activities include those required for obtaining a Permit to fly, which is crucial for the forthcoming piloted flight tests of the VX4 program.
The company is on the verge of completing its advanced full-scale VX4 prototype assembly and will soon initiate piloted flight tests at Cotswold Airport.
In recent developments, the CAA and the European Union Aviation Safety Agency (EASA) have outlined their collaborative approach for the VX4's certification, ensuring that both regulatory bodies will apply common standards and work together toward the VX4's concurrent certification and validation.
Vertical Aerospace has established partnerships with leading aerospace companies and has secured 1,500 pre-orders for the VX4, valued at approximately $6 billion, from customers worldwide.
InvestingPro Insights
As Vertical Aerospace [NYSE: EVTL] forges ahead with its eVTOL aircraft testing, investors and industry observers are keeping a close eye on the company's financial health and stock performance. According to InvestingPro data, the company's market capitalization stands at $186.73 million, reflecting the market's current valuation of the firm.
InvestingPro Tips highlight some challenges facing Vertical Aerospace, notably its quick cash burn and weak gross profit margins. These factors are critical as the company scales up operations and moves towards commercialization of the VX4. Additionally, with the stock having taken a significant hit over the last week, investors are witnessing volatility that underscores the speculative nature of this emerging tech venture.
Despite these concerns, there are positive indicators for Vertical Aerospace. The company's liquid assets surpass its short-term obligations, suggesting a degree of financial resilience in the near term. Moreover, while the company has not been profitable over the last twelve months, there has been a notable price uptick over the last six months, indicating some investor confidence in its long-term prospects.
For those considering an investment in Vertical Aerospace, it is worth noting that analysts do not anticipate the company will be profitable this year, which could impact stock performance. Furthermore, the company does not pay a dividend, which might influence the investment decisions of those seeking regular income.
InvestingPro offers a comprehensive array of additional tips for Vertical Aerospace, which can be accessed through their platform. For those interested in a deeper dive into the company's financials and forecasts, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 12 additional InvestingPro Tips available, providing a more nuanced understanding of the company's financial position and future outlook.
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