Kenny Tarmac Here!

Welcome to Go Above Traffic.

The eVTOL newsletter that’s better than stopping the gas pump exactly on an even number.

But we don’t need gas in these aircrafts, so let’s get into it!

What you need to know in eVTOLs this week

Archer Aviation

Archer delivered the first Midnight aircraft to the United States Air Force and couldn’t pass up the opportunity for a sleek marketing video.

If the engineers and operations team at Archer are anywhere near as good as their marketing folks they’ll be in a good shape.

EHang

China based EHang continues to ride their recent wave of success.

After launching money making operations in China, the’ve now obtained an Experimental Flight Authorization Certificate (CAVE) from Brazil’s National Civil Aviation Agency.

The plan is to work with local partner Gohobby (Brazil’s largest importer and distributor of drones), to run flight test campaigns of the two-seat, pilotless eVTOL.

A lot of people doubt the economic viability of selling a 2-person eVTOL, but at the moment EHang has the best shot.

Eve Air

Eve Air Mobility, the subsidiary of Brazilian aircraft manufacturer Embraer, appointed Megha Bhatia as the new Chief Commercial Officer.

Her last role was Chief Strategy Officer at Jet Support Services so she has the pedigree.

She has a big task in front of her- converting 2,900 Letters of Intent, potentially worth USD 14.5 billion, into actual revenue.

Of course, she’ll only be as good as the Eve Air team responsible for achieving certification.

Volocopter

Money is tight at UK based Volocopter.

They’re scrambling to stay listed on the New York Stock Exchange.

Shareholders approved a reverse stock split that was needed to be compliant with the exchange.

They also reported a $25 million operating loss in H1 2024 and have a cash runway until about Q3 2025.

Timing is of the essence in every aspect of their business.

New Horizon

Time us running out for Canada based New Horizon to get their act together, otherwise they are getting booted from the Nasdaq.

Nasdaq, why you mad bro?

Because New Horizon is failing to meet the net income requirement of $500,000 in the most recently completed fiscal year and not currently meeting required minimum market value of $35 million.

They have until mid-October 2024, to submit a Compliance Plan to regain compliance. If accepted, they’ll have 6 months to demonstrate compliance.

The odds they stay in compliance - 50/50.

The Markets

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

New Horizon Aircraft fell off a cliff this week on the news mentioned above.

Aside from that it’s just a ho-hum run of the mill week in eVTOL lands.

Jumps and dips of 10%, would be big news at a blue chip companies. Not here.

Keep an eye on where everyone’s cash position is at over the next 6-12 months.

The $100K Life Savings Bet

"A new category winner tends to get 75% of the revenue and 50% of the profits.

-Some Partner at Sequoia

This isn’t the exact quote.

And I heard it on a podcast, so it’s definitely not 100% accurate.

But it’s directionally correct and that’s good enough for me to dump my $100K life savings into Joby.

What it means is that eVTOLs are a winner take most game.

So the question isn’t whether or not eVTOLs will be a thing. That’s an inevitable outcome in my mind.

It’s just a matter of picking the winner who will get the lion’s share of the money.

And my bet on the is Joby.

So are we in the money?!

Almost exactly at $100K.

Just like real life, there are ups and downs.

This week is neither of those.

Plan on seeing minor ups and downs through out the rest of the year if not a bit longer.

My prediction is the real fun wont be until be in late 2025 and 2026.

Lighten Up

Final Question

Are you getting in an eVTOL with no pilot before you get in one with a pilot?

— best reply gets a shoutout next week.

Best Answer From Last Week

I asked “What is one thing that has a chance of stopping eVTOLs from becoming a success?”

Best reply came from Aubrey in Tennessee:

“It all comes down to money. If the economics don’t work out and taking an eVTOL is too expensive, then it will be like Blade or private helicopter transport. Still a decent business but not super successful.

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