High, Higher, Highest

Welcome to Go Above Traffic.

The eVTOL newsletter that has you feeling better than a kid on Christmas morning.

Let’s get into it!

What you need to know in eVTOLs this week

Archer Aviation

Southwest Airlines and Archer Aviation have announced plans to develop air taxi networks at 14 California airports.

The two organizations signed a MoU to “collaborate on a concept of operations that lays the foundation for integrated electric air taxi networks that would support California airports and the surrounding communities that Southwest serves.”

Feels like a weekly reminder at this point, but MoU’s are typically non binding. This one has no set timeline on when services will offered. It states the companies plan to collaborate over the next few as eVTOLs take flight.

Vertical Aerospace

British eVTOL developer Vertical Aerospace unveiled a new full-scale VX4 prototype on this week.

The new aircraft, which will soon be ready to start flight testing, boasts a 20% increase in its power to weight ratio. It will reach a speed of 150mph (the cruise speed that Vertical Aerospace aims to certify the VX4). 

A few days before Vertical Aerospace unveiled the new prototype, the UK’s Civil Aviation Authority (CAA) expanded Vertical Aerospace’s Design Organization Approval (DOA) which gets the startup a step closer to starting its certification.

Pivitol

Larry Page’s favorite side hustle, Pivotal, has delayed customer deliveries of its Helix personal eVTOL to 2025.

Page recently agreed to inject more funds into the company with the agreement that a specific number of Helix vehicles would be built by the end of the year.

Exact number aren’t available at the moment so we’ll keep on eye on how that situation plays out.

The Helix starts at $190,000 and will be classified as an Ultralight aircraft, meaning customers won't need a pilot's license to fly it.

Lillium

Saudia Group, the state owned Airline of Saudia Arabia, and Lilium today signed a binding sales agreement for 50 Lilium Jets, with options for the purchase of 50 more.

Saudia Group expects to receive the first jets in 2026.

The Lilium Jet will feature large, premium cabins with capacity for up to six passengers plus luggage.

The agreement includes a schedule of deposit and pre-delivery payments, timeline of future deliveries, guarantees on aircraft performance, and provisions on spare parts, fleet maintenance, repairs and support services.

Horizon Aircraft

eVTOLs get a lot of attention for their potential use as air taxis, but Horizon Aircraft is setting their sights are set beyond just shuttling the masses.

A few that jumped out that I haven’t seen other companies talking about:

• Securing Medical Services - AKA medevac. Getting injured patients from accident sites or isolated areas to a hospital.

• Disaster Response

• Search and rescue missions

• Supply delivery to zones affected by tornadoes, hurricanes, landslides, storms, floods, forest fires

• Time-sensitive cargo shipment to underserved, remote regions

• Traffic observation and control

• Investigative usage

• Emergency surveillance

• Missing persons in the wilderness

• Helping monitor crowds and circumstances advents

• Co-ordinating evacuation in anticipation of catastrophic weather conditions

The Markets

Or “The Casino” if you prefer the Wall Street Bets mentality…

Last week’s rally cooled off, but things are generally going in the right direction.

More green than red is popping up in the week over week column which is refreshing to see again.

The broader market sentiment will impact things over the next few months heading into the Presidential election, so keeping that in mind as well.

The $100K Life Savings Bet

The secret to investing is to figure out the value of something and then pay a lot less for it.

-Joel Greenblatt

Joel Greenblatt is a value investor but was also known for making concentrated bets of 20-30 stocks.

Not sure he would love the idea of putting my $100K life savings into Joby.

But if we correctly figured out the value of Joby (or at least the future value) is a lot more than we’re paying for it now, then he might like this play.

Regardless of what he thinks, the play is in motion…

So are we in the money?!

Yes. We are in the money.

Joby kept the train moving from last week and we’re up $33,000.

Let the winners ride as they say, so nothing changes in my book. Wouldn’t be surprised if the price pulls back a bit.

Whether it drops back down a bit or not in the short term, the long term price target is miles away for us, so we’ll hold steady.

Lighten Up

Final Question

When it comes to eVTOLs - What’s the main reason you will or will not use eVTOLs as soon as they’re available?”

— best reply gets a shoutout next week.

Best Answer From Last Week

I asked “When it comes to eVTOLs - what will be the difference between high end experience and budget rides?”

Best reply came from Matt in Tennessee.

“High end will feel like a JSX flight. Middle of the road will feel like you have TSA Pre-Check and access to a Centurion Lounge. Low end will be like you’re flying on Southwest out of SFO. But all those are all better that the feeling you get from Spirit.”

Thanks for reading and let us know what you want to see more of next week. We read every single reply.

Stay above.

— The Above Traffic Team