As head of our AAM practice, it is Michelle Olson‘s job to watch for groundbreaking developments in industries that have the potential to redefine the market landscape. One such innovation that has captured our attention is the R&D and money pouring into the creation of eVTOLs (electric vertical takeoff and landing) aircraft. You may have heard about “flying cars” or “air taxis.” Many of them are eVTOLs and they’re now generating significant buzz among mainstream media. Demonstration flights in New York City by Joby and Volocopter in November were covered internationally and the positive impact on stock was surely felt. In fact, according to a recent article on InvestorPlace, “flying car” stocks are taking off, and we believe that these and air taxis represent the most exciting development in aviation since the dawn of the jet age.
The article highlights three top picks for investors interested in the breakout sector. These picks include two companies that are at the forefront of developing and commercializing air taxis, and one that actually is a flying car that can drive on the road and fly without too much transformation. I saw it at CES in Las Vegas and it’s intriguing. So many factors will determine if we see it in the air one day, however.
So why pay attention to companies that make vehicles you haven’t heard of? eVTOL aircraft have the potential to revolutionize urban mobility with their short ranges, very low noise thresholds and zero carbon emissions. With traffic congestion becoming an increasingly prevalent issue in major cities around the world, the idea of taking to the skies for daily commutes is both innovative and practical. Air taxis promise to alleviate traffic congestion, reduce commute times, provide a more efficient mode of transportation for urban dwellers and first responders, and reduce the carbon impact to our world.
Electric-powered air taxis not only contribute to sustainability goals but also offer quiet and cost-effective solutions compared to traditional helicopter services. Investors keen on environmentally friendly and economically viable transportation options will find these eVTOL aircraft companies particularly appealing.
From an investor’s perspective, this presents a unique opportunity to tap into a market that addresses a growing need for efficient and time-saving transportation solutions. Companies at the forefront of air taxi development are positioning themselves as pioneers in a sector that could transform the way people move within cities, offering investors a chance to be part of a groundbreaking shift in transportation dynamics.
The article also emphasizes the increasing collaboration between air taxi companies and established players in the aviation industry. This collaboration is a testament to the sector’s credibility and the acknowledgment by industry leaders that air taxis are not just a futuristic concept but a tangible and viable mode of transportation. Not mentioned, however, is eVTOL manufacturers’ partnerships with automakers for rapid manufacturing. Another vote of confidence that air taxis could quickly become a mainstream mode of transportation.
Air taxis represent a game-changing development in aviation. We joined this industry in 2019 when we supported our client, Bell, in its air taxi reveal at CES, and continue today with a number of clients in the Advanced Air Mobility (AAM) space. Its potential for urban mobility and other use cases serving public safety, fire fighting, and logistics makes the air taxi sector an exciting investment opportunity. As the skies open up to a new era of mobility, savvy investors have a chance to soar to new heights with the promising prospects presented by all facets of AAM.