EVEX - Eve Holding: Clouds Need To Clear Before I Can Buy This Story
2024-04-15 11:53:34 ET
Summary
- Eve Air Mobility is leveraging its relationship with Embraer to develop a competitive advantage in the eVTOL market.
- The company has a strong order book, signed customers for its Urban Air Traffic Management system, and secured maintenance contracts, providing potential revenue even before its planes are flying.
- However, Eve may be late to the market, faces regulatory challenges, and has limited liquidity, raising concerns about its ability to maximize its commercial potential.
For all intents and purposes, Eve Air Mobility (EVEX) is a subsidiary of the Brazilian aircraft manufacturer Embraer (ERJ). They are attempting to leverage their majority shareholder's technical ability and market reputation to develop a competitive advantage in the eVTOL market. An industry widely forecast to see enormous growth over the next decade. I am not yet convinced that Embraer will provide the competitive advantage they seek. I worry that Eve may be late to the market, giving its competition a head start, and I think investing elsewhere might be a better bet.
This is the second in three articles examining the competitive situation between Eve, Archer Aviation (ACHR), and Vertical Aerospace (EVTL). The first article focused on Archer and explained that the three companies target the same customer base: operators of future air taxi services. The other leading eVTOL companies intend to compete in different areas; Joby Aviation ( JOBY ) wants to be an air taxi operator and not sell aircraft, EHang ( EH ) targets the tourist industry, and Boeing ( BA ) is targeting the autonomous future of this nascent space through its Wisk Subsidiary ....
Eve Holding: Clouds Need To Clear Before I Can Buy This Story