EVEX - Flying taxi stocks rip huge gains as investors eye commercial acceptance

2023-06-29 09:18:34 ET

The rally in eVTOL stocks continued in early trading on Thursday as buzz over flying electric taxis becoming a commercial reality continues to build.

Joby Aviation ( NYSE: JOBY ) received regulatory approval in the U.S. on Wednesday to expand testing of its air taxi and also landed a $100M investment from SK Telecom on Thursday. Meanwhile, Archer Aviation ( ACHR ) is reportedly mapping out a strategy for expansion to the Middle East and Asia at the same time it looks to secure certification for its commercial air taxi service in the U.S.

Weighing in on the eVTOL sector, Canaccord Genuity recently updated that the potential for electric vertical take-off and landing operators could be grander than the helicopter-like niche many now assume. Instead, the air taxi service could become a ridesharing-like industry and challenge the likes of Uber and Lyft. "eVTOL aircraft, given their optimized ranges in the 20- to 50-mile range for journeys, are in a strong position to take share in the ground vehicle-based ridesharing sector. Based on our estimates, ~15% of rides hailed to and from airports and 5% of longer-distance regional trips could be replaced by eVTOL aircraft, potentially reaching 45M monthly active riders within the next decade," read the firm's breakdown. "At a target ticket price of ~$107 for an airport-ranged flight, we estimate that the TAM for eVTOL travel in urban metros could be worth nearly $58B by 2033," noted Canaccord.

Following a 40.22% spike on Wednesday, Joby Aviation ( JOBY ) ran up a 19.66% gain in the premarket session on Thursday. Archer Aviation ( ACHR ) followed its 13.57% rally with a 14.29% jump on Thursday in the early session. Shares of Lilium ( LILM ) gained 9.38% premarket to add to the 20.30% pop on Wednesday. Eve Holding ( EVEX ) was up 4.84% premarket to follow on a 4.90% gain on Wednesday. Vertical Aerospace ( EVTL ) rose 4.21% premarket on Thursday after a 6.15% rally the day prior. Blade Air Mobility ( BLDE ) rose 5.28% after a 6.85% gain on Wednesday.

More on eVTOL stocks:

• Archer Aviation: eVTOL Stock Flying High
• Air taxi interest heats up as FAA highlights milestones
• Archer Aviation is called an undervalued eVTOL stock by JPMorgan after earnings
• FAA updates air mobility blueprint for flying taxis

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