저자: Kevin · 외국인
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Joby·Archer 등 eVTOL 항공택시 업체를 연간보고서·재무제표로 비교 분석. 페이로드·항속거리(약 80km 실사용)·충전 시간·소음 등 사업성 한계를 지적하며 현금소진 속도(Joby 분기 약 1.25억달러 소진, 잔여 약 1.5년 추정)를 우려. Archer는 3억달러 유상증자로 재무 여력이 더 큼. 현재 단계에서는 옵션성 투자에 가깝다는 평가. 발언 중 Eve Air Mobility 인터뷰 및 광고 포함.
다듬은 글
So now let's analyze the difference between Archer Aviation and Joby. This is how the Archer performed, since... I wonder if it suffered a SPAC. Considering it started at $10, I wouldn't be surprised if it underwent a SPAC and remained at $ 10 for a while. As with most stocks that undergo SPAC, they fell by 70% to 80% for a period of time .
Archer Aviation is now trading slightly above SPAC levels, almost $11. If you look at Joby, you'll see another one that likely also suffered a SPAC, closed above $10 here, also dropped to around $3, and now is back almost at $10. So, what can we analyze within these companies? Well, I always like to start with the fundamentals of the business .
And you can also get a good description of these companies' business in their annual reports. It's a little trick that I like to do. We get their annual reports and, in the business description, which is usually just one page, they say exactly what they do. So, here's Joby's. Joby is developing a fully electric eVTOL air taxi capable of vertical takeoff and landing.
We intend to operate in cities around the world. Our mission is to help the world connect faster and more easily with people and places through a fast, quiet, and convenient air transport service. Okay, one of the things you need to keep in mind about these aircraft is that they are noisy. And that's why they're talking about silence in their annual report here, because they're not silent now.
Even a jet engine is noisy, obviously, right? We don't want jet engines floating low , but a helicopter is at about 1,500 feet, which is very noisy. I don't know how quiet these things can be, because you're essentially breaking the wind to create lift . So, the noise issue, obviously, they're demonstrating this here on the field, is going to be a big problem for air taxis.
However, I think it's solvable because you can create corridors. And usually the way to create corridors with these things is to follow the highways. That's my opinion. So, I'll give you an example here. Let's go to Los Angeles. Sorry, I don't like Los Angeles. If you live there, I still love you, but I don't like Los Angeles.
You know, let's imagine for a moment that you took off from, I don't know, let's choose an airport here. Here, we'll take Fullerton or something like that. I could perfectly envision a future where a company like Joby or Archer or whatever of those taxi services is basically able to take off , you know, from some facility here or wherever those planes are parked or something like that.
It's probably a flight school here or something like that. And they end up just following the highways. Right? Because that's where you're focused. So, I think this is a solvable problem. And then you obviously have, you know, parking spaces everywhere. I mean, the cool thing about being able to fly is that you not only have to follow the highway , but you also create a corridor where you fly onto a different highway, you know, and either way you can park somewhere else here at Compton Airport, wherever you want to go.
So I think it's possible to solve this silent problem. The Joby eVTOL was designed to carry a pilot and up to four passengers, with an expected payload of 1,000 pounds. This is really impressive because it looks like a very small aircraft, the one we just saw in the photo. I have about 500 flight hours as a pilot, and what I've noticed in smaller aircraft is that their payload is very, very low.
I'd say 1,000 pounds of payload, quite impressive. However, this is basically enough for five people: the pilot and four passengers. You won't be putting much luggage in there. In fact, a pilot and four passengers implies zero luggage. If you're bringing a lot of luggage, it might only take one pilot and two passengers.
So, there's a small issue with the payload that you'll also encounter with this. But if you 're talking about some business executives and they're just carrying a briefcase, they need to go to downtown Los Angeles to drop them off and pick them up or something like that, this might work . Again, you need these corridors where people don't mind the noise.
According to our modeling, over 90% of urban routes in cities like New York and Los Angeles are significantly shorter than that. The aircraft is optimized with a target range of 160 kilometers. Yes. Okay, the thing is, you need reservations on the aircraft. So, you probably won't want to go, and it's like a drone, right?
With a drone, you generally want to land when you have about 20% battery left, because the voltage starts to drop and you'll fall from the sky . So, the reality is that you need a reserve beyond that. So, you probably want to start thinking about landing when you 're 80 km away. What this realistically means is that you have about 80 km of cargo range on this vehicle.
It's not great yet. That's another problem: the batteries are heavy, and I don't think you have the necessary battery technology yet. So, it might be too early to get the noise routes right for the payloads to be functional, because, again, you can't fit any luggage in there if you have four passengers.
You don't have a second redundant pilot, but that can be a good thing, especially if there's a lot of technological redundancy in the aircraft itself. So, realistically, you have maybe an 80 km range here, right? Okay, cool. So, this is our Joby aircraft. That's their goal. We completed our first international demonstration flight at the end of 2024.
Currently, we do not intend to sell our aircraft to third parties or customers. Instead, we plan to manufacture and own our own aircraft. Haha, building a vertically integrated transportation company for government agencies, the Air Force, the Department of Defense. You know, you can actually take people from Vegas or Henderson or anywhere else and take them to, you know, Area 51 or anywhere else and use them as round-trip routes.
Again, this 160 km range really makes me nervous because if you have a range of 160 km and you fly 80 km, you need to sit down and park. Okay, so now the question is how to park for 2 hours, right? If you take a 40 km trip, you can go and come back, but again, you'll be stopped for a few hours. So, you simply don't have the uptime that, like, think of Southwest Airlines and the goal of a taxi is minimal downtime.
It's like you park, pick up your passengers, fly, come back, land, park, refuel, and continue on your way again. Downtime is relatively limited. Yes, even on larger aircraft, is their downtime, like, 45 minutes or more? Or maybe an hour. But you really want to minimize that. How long will it take to fully charge these little creatures?
Because you're not doing the first 50%. You are completing the last 50 %, which loads more slowly than the first 50%. So, this is something you should pay attention to with these Joby and Archer models. We believe in vertical integration, and they are pursuing vertical integration, which makes sense.
I mean, that's, you know, a great selling point, and it would be nice if they could pull it off. When they do that, it will be great. We operate an engineering and manufacturing facility for electronic transmission components in San Carlos, California. Well, that's pretty cool. I would love to visit that.
With local support from California, we began construction on a new factory. Oh , that's cool. We believe that the California operations will be able to support low-production plans and testing and development. I mean, that's pretty cool. Neo from the skies. Yes, I see your comment here. I think that's incredible.
How do you know that the 100-mile range isn't counting the reserve battery? I do n't think so. I mean, you might be right about that. Because it says the aircraft is optimized with a target range of up to 100 miles. Let me explain it this way. I think they 'll give you the best-selling item here, but I appreciate you mentioning it because I don't have that answer.
Perhaps if we look at their product presentation website, we can tell you here. Maximum speed of 200 miles per hour. Look, they don't do the flight from the heliport to JFK. I mean, they're all popular, but they're already being served by real helicopters . That's another thing you need to remember.
Yes, they don't talk about the battery here. These companies will also compete with helicopter operators. So, keep that in mind. Okay, so let's take a look at the finances. So, Joby has... Honestly, we don't need to look too closely at their recipes. What we need to see is what's happening here. Joby's current assets consist of 122 million in cash.
That's reasonable, but you can see that it was burned off in just the last quarter, and a lot of it, actually. Look at this. What happened here? You had almost 80 million dollars burned here. In cash. I mean , they could have invested in another asset, I think. Total current assets have decreased. Total assets fell.
It does n't seem like he has invested much in terms of assets. Our payments are stable. And our total liabilities plummeted here. Something was paid for here. Earn-out equity liability, warrant liability. Ah, all of that is old SPAC stuff. When stocks basically hit a certain price, they just dilute the stock price more because, like, insiders get, you know, double bonuses, or early investors get more, or something like that.
Okay, cool. So, as you can see, this is a pre-revenue company. Damn. Dude, how did we spend $134 million on R&D? And what are you spending G& A money on? US$29 million in G&A? Well, you 're not selling anything. So, in reality, it's $29 million overall, including administrative costs. Wow. Including some purchases of related parts.
Well, those are nominal numbers, that's fine. Okay. Fine, then, look, we know it's my money that's going to lose. That's not the secret here. The question is, how long can they sustain this cash burn? So, their cash flow, I mean, look at this. Facilities and equipment 15. We have a cash burn of US$ 125 million in 3 months.
And when I add these two numbers together... So, Joby doesn't have much money. And we're not even close to real operations , in my opinion, at this point. I'm very excited about what they can do. I think they can do it, but they need money. So, if we're burning through 125 million per quarter, we still have these short-term investments.
That is good. So, we're burning through, let's say 135. We have 812 minus current liabilities. Current liabilities are good. Only about 50 million, right? So, we're paying our bills as they come. We have 762 million available divided by 135. You have 5.6 quarters. You have about a year and a half of cash left.
For a startup like this, that's probably not very unusual. It's not great. What is the Chernobyl power line? It's neither great nor terrible. It's neither great nor terrible. Let's compare this to Archer. And I have no interest in that race. So, I don't want anyone to think I have a bias towards any of these.
So, they're doing the same kind of presentation, you know, one passenger, which is what Hello Helo's also does. Okay, so, similar presentation, different aircraft. Archer announces planned air taxi network in Los Angeles. That was in August. Oh, look, that's clever. I like that. Oh my God, look at that.
It almost follows the highway the way I was talking. Although I don't know if these are the actual flight routes or just expected passages. But that's cool. Now, how far apart are they? Plans to launch a network in Los Angeles, with electric flights lasting 10 to 20 minutes. That's great. Landing at LAX, USC, various different destinations.
Okay , that's cool. Los Angeles Rams. They're starting as early as 2026. Yes, but what kind of approvals do you have to do this, because I think they 're just saying they plan to do it or that they expect to do it. But do they have any indication from the government that they care? Well, I think the University of California is committed to being part of the network.
I think a private entity like... Well, I mean, technically... Well, yes, it's a private entity. I think, technically, they can probably do that on their land. It's like, "Hey , you can land here." That's really cool. So, they are designed for round-trip flights of 20 to 50 miles with minimal charging time between them.
So, they are trying to address the concern I had. 100 times quieter than a helicopter cruising. Serious? If that's true, it's very impressive, because helicopters are also quite noisy. At cruising altitudes. In other words, takeoff and landing can be quite noisy. But while cruising, these pups can almost glide, huh?
That 's interesting. Redundant systems, that's fine. Designed to carry up to four passengers and hand luggage. Did you see how specifically they specify carry-on baggage? Because , to reiterate, they simply don't have the payload capacity for that, right? Is 100x about 20 decibels quieter? I know, right?
Then Governor Newsom commented, "That's good , okay, whatever." I really do n't care what Newsom is saying. Yes, so I think if you argue that you have a partnership with a private entity, that could work. Okay. Okay, okay. So, let's take a look at them. I mean, they're not going to make a profit either, but let's see how different their cash burn is.
First quarter results. So, let's operate. Okay. What do we have here? Net loss for the quarter of approximately one hundred million dollars. We have one billion dollars in cash. So, you have ... Let's see what the cash flow is. Wait, why do I see AI here? AI partnership with Palantir. Leave the city.
Man, everyone's partnering with Palantir. That's the funniest thing of all. I just glanced at it out of the corner of my eye and thought: wait a minute. Archer has formed a key partnership with Palantir to develop artificial intelligence for the future of cutting-edge aviation technologies . The company's plan is to incorporate the development of cutting-edge software using AI to improve reach.
Hey, just a quick reminder. If you want to earn a 5% return and the full upside potential of my real estate startup, we have a funding round for non-accredited investors where we will pay a 5% return, in addition to guaranteeing all the gains from the shares when they are converted in the future. This gives you the chance to diversify, moving away from the high valuations of stocks, most tariff risks, and the madness of the Treasury bond market, especially with Moody's downgrades.
You 're diversifying into properties that need renovation, him my little Berkshire Hathaway. Now, maybe I 'm biased, but I have over $5 million of my own money invested in this business, and I'm very excited about what I think we'll be able to do with this business not just in the next few years , but in the next few in my power for this business to ensure we can do the best we can.
B in all investments. What? Are you using AI to improve reach? This is primarily mechanical. No. It seems like maybe you could use AI for logistics, right? So, the way to do this is like: "Hey, I need to go here, here, and here. I have people to pick up here, here, and here. I have these payloads to move." And AI can gather this data.
That's what they mean here. But I don't think AI will make my propellers and battery more efficient. I don't know. Maybe I'm wrong. I think this is probably more about logistics planning, which is basically the same thing you'd see in, like, UPS or something like that, right? So, this isn't really a big problem.
Archer plans to deliver its Midnight aircraft to the United Arab Emirates in the coming months for planned deployment later this year. Okay. Archer recently received approval for the design of the first hybrid heliport. Well, that's cool. Abu Dhabi, that's cool. Okay. Okay. They are also in California.
I'd like to know where they are parked. This is at an airport somewhere. I bet I could fly to the airport where they 're parked. And go see them. Just go to them. I'll probably get into trouble, so I won't do it . Don't sue me, bro. Isn't there a button for that somewhere? No, I think if I crank up my sound effects, I'll break something again.
I need to fix my small mixing console. All good. So, we have a cash flow statement here because, in fact, I don't have a complete bank statement. So, let me do it. Let's go because they only gave you the statement for the first quarter. So, let's go to the SEC records. Let's go for a quarterly schedule.
Ah, here it is. Perfect. It's much easier for me to read. Okay. And also, just to observe the difference between them in business, it should be more or less the same thing. It was a SPAC. Ah, they don't give that in a 10-Q, of course. This is only on the 10-K. All good. Hmm, so what do we have here ?
We have $1 billion here. Excellent. Yes, we were in the 10th quarter here. Okay, perfect. Just to be sure. Excellent. So, we have $1 billion in cash. Look, their cash flow has really increased. How did their cash flow increase by $200 million? Well, let's find out. It's here in the cash flow statement.
They will tell you. Cash flows. Here it is. Oh, they issued $300 million in shares. Direct offering revenue recorded. But when was that? Yes, only in the last 3 months. Interesting. I emailed them, Kevin, they can do the interview. I'm in. I would...Look, what's kind of strange now is that I've never analyzed these companies, like, as a pilot.
This is my first time as a pilot. I realized that. And I think that's really cool because my mindset is now shifting from one angle to "Okay, how much weight can I carry? Um, you know, what kind of wind can I land in? How much reserve fuel do I need? " Which, in this case, is the battery. Like, what are my security features, right?
All these things matter now. And you simply don't think much about it when you're not in that world, which would make perfect sense. So, looking at it now, it's quite exciting. Legal. So, a net loss of 100 million. So, they raised money. In fact, I think these companies probably won't run out of money because there's a lot of hope surrounding them that they could continue doing this.
They could continue raising money, right? So, what are they spending their money on? Oh, you know what ? Let's put these side by side. Ah, the Qs are quite high. Well, that's what I thought. Oh, and Nebia is cool . I'm just reviewing the data from our Alpha report this morning, in the live stream for course members.
We were talking about Niobe and Corweave and some other goals and stuff. And then I'm seeing the momentum shifting towards them. We're even talking a little about AMD, although that was because of a course member, so shout out to them. Okay. So, that was... Let's take a look at the expenses here. Who is spending more money ?
Here we go. So, R&D, and then we'll compare it with R&D here. All good. So, on the left, we have Joby. And to the right, we have Archer. So, in R&D here , we spent 103 million. Here, we spent 134 in the quarter. And that was R&D. G&A, they're both doing well in G&A. 40 million and 29 million. I'm still a little frustrated about it, but Joby really does seem to have higher expenses .
Wait. But Joby's net or operating loss is -163. But then we have... Okay, well, this has to do with warrants and earn-out shares. Okay, this isn't going to be ongoing. So, let me look at the operating expenses. Operating loss of 144, operating loss of 163. So, Joby has slightly less capital and is burning through more cash.
Archer has just raised $300 million in the market. So, I think the way to look at these moves, when you consider both of them, is that they're sort of options for the future. Like, you 're not really close to doing anything anytime soon in terms of functional recipes. My guess is that you probably have, you know, I could see test flights in 2026, like real test routes.
But these flights will result in losses. You don't have battery technology yet. And you really need to figure out how to increase the payload so you can carry more passengers, ideally, than just four people, right? Because if you're going to take that flight, it would be good to take about 12 people, you know ?
And some luggage, right? All good. But whatever, maybe they could charge enough. I don't know. Four people for this type of flight, it seems that the revenue, the cost per ticket, is going to be very high. I mean, think about it this way. If I were to remove this thing, let's say, if I had a helicopter.
If I were traveling from one part of Los Angeles to another part of Los Angeles, I would probably expect to spend $1,500 for one person to go from one point in Los Angeles to another point by helicopter, right? Takeoff, landing, bicycles, engine warranty programs , for helicopters or engines for a multi-engine aircraft.
Warranty program covers parts and repairs only. Ah, your landing gear, whatever. I don't know much about helicopters, but I imagine you'd have to spend that kind of money. Plus the fuel, obviously. And the pilot, right? You have to pay for all of these things. If you put four people in it, well, four people, 1,500 divided by four people, is $375 per person.
This is your point of equilibrium. You have to profit from this. Well, nobody's going to spend $500 to avoid a 20-minute commute. So, the cost of operating these things would be my biggest concern. Is it as if I could reduce the operating cost to $ 750 per hour? Well, let's say I could operate a Joby or an Archer for $ 750 an hour, half the cost of a helicopter, and I could fit four passengers in it.
My breakeven point is $200 per person. Okay, so people are going to pay, say, $300 to go from one end of Los Angeles to the other? Some people will go. It 's not that bad. You know, if you want to avoid two hours of traffic and you're a CEO or something like that and you make a lot of money, it's an option.
That's interesting. But then you need to convince people about safety and that they should make noise along the routes. So the question is, is this in the future? Absolutely. I think there's no doubt that there's a future here. I think the limitations now are political, revolving around noise and permits, payload, and weight.
Break-even costs don't matter much right now because, as soon as they start operating, the shares will go up and they'll be able to raise a lot of money with their stock. That being said , you're likely to be constantly diluted. So when you see these momentum highs here, it 's no surprise to me that after the stocks soared in November and December, they issued a bunch of bad stock and the stocks fell.
Because that's what they should do. This only gives them more money to survive longer. So , you know, good for them. So, long-term future, yes. Between now and then, there are many things to analyze. Battery technology, regulations, safety, profitability. So, I wouldn't bet against these companies because, when they're discovered, they'll be worth much more than they are today.
I mean, how much are they traded for? I mean, $ 7 billion, that's quite a lot for an idea that's losing money. Right? Six and seven billion dollars for an idea that generates losses. That's enough. Dude, Coreweave is still going strong. Let's go. This was in my Alpha report for today's trading. Okay.
Hmm, send Kim Kardashian up there. She would do anything these days, someone said. Hmm, okay, let's see here. Archer Aviation is re- I'd like to see some of your comments. Someone wrote: "Archer Aviation is recommended by Arc Invest, Kathy Wood ." I liked how you specified it, like, "Oh, by the way, you know, Kathy is from Arc Invest." Thank you for clarifying that.
Someone said, "The FAA can't handle the traffic it has now. There could be problems there." Yes? Especially in busy areas like Los Angeles, but that's why I believe they will create corridors. And I think they can direct traffic around specific corridors. So, I'm less worried about the traffic, although I respect the concern because it's a disaster.
If they're in perfect hallways all the time, it might not be a big problem. Does physics make sense in short-haul air travel ? So much wasted energy . I don't believe in flying cars. Well , I mean, it's not about physics or energy, it's about time, right? People who don't want to be stuck in traffic for 2 hours because they have an important meeting worth $100,000 will pay $500 for a ticket to get there faster and be able to get to the next meeting, right?
After all, that's the nature of economics, right? Let's see here. Oh, that's funny. Thank you for saying that. Yes, I see a comment here. What was it? Where was it? 1:22:48 AM. D resisting the penny like Kevin's Alpha report. Oh, thank you Renee for saying that. Yes. If you're not already part of the Alpha report, remember that you can get it at meetkevin.com.
Joby has more FAA certifications under the FAA's new eVTOL rules. Hmm. Okay. Well, let me take a look at them. FAA eVTOL rules. Let's see how far they've come . Advanced air mobility. What is that? A generic term for a highly automated aircraft with electronic propulsion, vertical takeoff and landing.
Air taxis, landmarks. Ah, ah, this is to certify the aircraft to fly. Ah, ah, ah, ah, that's very good. That is great. So, they have a pathway to certify the aircraft to fly, which is good because I think we can get air corridors. I'm still concerned about battery life and payload, but this is very interesting.
Thank you for mentioning that. Can you imagine that? Oh, Mav, Mav, you need a hug. Okay , interesting article from the Wall Street Journal. Okay, rumors are circulating. Okay, we'll take a look at that in a moment. So, Joby has Toyota as an investor and manufacturing partner. So, I really think that's very valuable.
I think the Japanese industry, as well as the Chinese one, frankly, are great partners, and I think if you can manufacture this with an Asian partner , you'll do very well. So, I really like this with Joby partnering with Toyota. Archer announces partnership with Anduril to develop a hybrid EVTOL military aircraft, raising an additional $430 million.
Okay . Yes. I mean, basically they sold shares when they heard the news about this partnership. I respect that. I mean, that's cool. Military partnership, that 's a perfect use for it. Perfect for use. Because you're no less concerned with, you know, the politics of downtown Los Angeles and the nonsense of trying to have noise corridors.
It doesn't matter. A very clever military partnership for Archer. Just like having a manufacturing partner. Hmm, very, very interesting. So, I completely agree with that. So, I like that. Thank you for bringing this up. You could use drones to find wage agreements by taking pictures of rooftops. I mean, yeah, I guess technically...
I just want to buy my own Joby and my own Archer. I'm going to fly around. From my backyard. That's really cool. Ah, okay, cool. So, these are my thoughts on Joby and Archer. Again, I love the direction this is taking. I think the way forward is through the military. The more these partnerships become part of the future, the longer they will last .
It's only a matter of time. And that . And how much inventory do they need to burn through in the meantime, because obviously they're losing money, right? So, your investment is like a lifeline for these companies, to keep them going with their R&D and manufacturing or whatever it is, whatever it is, which is good.
But be aware that it will take some time before we become profitable. It's something Warren Buffett would look at and say, "Hey, that's too speculative for my taste." But then again, he'll miss the boat when and if they succeed and get their approvals, certifications, and profitability, and he'll wait until they become dividend cash cows, right?
But before they become dividend-generating cash cows, it will probably take us about 15 years. So, who knows? Could this be a generational opportunity? Perhaps. But another way to look at it is: could there be a really big buying opportunity on a dip in a recession? Probably. Because in a recession, people will have less money to buy these stocks, so they will plummet.
And then, when the stocks plummet and they raise money because they need it, they push the stocks down to those $ 3 lows. They basically become a penny stock, right? So, these might be opportunities to invest in something more speculative, but just because the market is more euphoric right now doesn't mean the real fundamentals of the underlying business have changed in the last, you know, six months.
Again, he's not pessimistic. It's only a matter of time. A nice appendix, you know, a nice little complement to our Joby Archer video, where we have Beta Beta Technologies. We don't have financial data on them because they're a private company, but basically they're EVTOL manufacturers who, as you know, see the future of these EVTOLs expanding from just regional operations with a range of under 200 miles now to the entire East Coast by the mid- 2030s and nationwide by 2040.
This is due to the limitation, as they say now, of batteries, which makes sense. The batteries are very, very heavy, and you need a lot of battery power to travel a good distance, so you do these 15-20 minute flights and then land. It makes perfect sense and it's kind of exciting. In other words, here's just another competitor compared to Archer and Joby.
And I think they said they were raising something around, I think, maybe a valuation of $3 billion. We should really take a look, we'll look in a moment. Yes, actually, let's see. Evaluation of investment in Beta mobility. Let's see what they have. So, they created Beta Technologies, not Mobility. Beta Technology raised a Series C valuation of $3.78 billion, which is a slight discount compared to Joby and Archer, which are trading for, you know , $5 to $6 billion right now.
And here's a company that's private, but, you know, at least based on what they're saying, they minimize their cash burn by selling batteries and parts, components, or technologies, whereas Joby and Archer don't. They are using the money they are earning, or basically collecting from shareholders, and investing it in the business to expand these eVTOLs.
A rather exciting deal. It's also worth noting that Embraer, one of the commenters here mentioned this, but it's true and we've already talked about it, I mean, years ago I remember talking about Embraer, uh, getting into these mobility deals as well. But here 's an article from Embraer about, uh, you know, their partnership with Eve Air Mobility.
This actually has a ticker symbol, EVEX. Uh, a global leader in the manufacture and service of eVTOLs, announces a significant breakthrough with the first flight of its eVTOL prototype. Team of engineers, blah, blah, blah. I think they split it up, Embraer, which manufactures real executive jets now, uh, and regional aircraft.
I'm almost certain they dismembered it. Through this relationship with Embraer, the third largest aircraft manufacturer, Eve is able to take advantage of Embraer's 55-year history in design, blah, blah, and manufacturing. With letters of intent for 2,900 eVTOLs. So, this is becoming quite a competitive space, which makes sense.
I think that 's more or less the direction you're going in. But here's another option. Here is Eve, a company worth US$1.66 billion. A large market or a partnership, also another SPAC. Great partnership with Embraer. A slightly newer, and smaller, company. Look, 174 employees. Beta Technologies has approximately 800 employees.
And this one was founded in 2020, while many of the others were from 2015 to 2017. So, Eve is a bit newer, a spin-off from Embraer, also a SPAC. It'll be interesting to see where they go, but I think you can look at Eve. Just do eVTOL here. And yes, here we go , Eve Mobility. And you can see their eVTOL.
So, yes, okay, well , this one is green. So no, there is no shortage of competitors here. Look at this. They even let you choose a route to fly. Let's go to Miami. Oops. That's so cool. From Miami to South Beach. Oh, that would be great, because it's about a 45-minute drive. You know, the airport is located quite far inland from Miami.
And to get to South Beach, you basically have to cross the bridge right next to downtown Miami. And it's a nuisance. So, my guess is that it's at least a 40-minute drive, depending on traffic, but let's take a look now, okay? Let's reveal it together. Let's go ... Ah. 20. That's Wow. 20 to 24 minutes.
I was wrong. I was wrong. Shorter than I thought. But anyway , I think it depends on the time of day, because it seems like I've done this trip before and gotten stuck in traffic, and it's awful. So, it could be the time of day. It is now 8 AM. It's 11 a.m. on a Tuesday. So, I don't know. Let's be mischievous and schedule it for, say, 4 PM.
Let's see what he says. Our. Yeah, look at that. Look at this. During rush hour, from 35 minutes to 1 hour and 20 minutes. That's what I've been stuck on before. So, if you go at a bad time, you're screwed. Between 30 minutes and an hour, that's where my 40 minutes come from. Finally, we're going to fly with Eve.
Look, they even use 45 minutes as the average travel time. At the electric vehicle toll booth, they say 15 minutes. Now, one thing I think people forget when it comes to aviation is that it's not just the flight time that matters. It is also the preparation time. Like, you have to drive to the airport.
You know, when you drive to the airport, you might already be there. Right? So, you have to drive to the airport. After driving to the airport, this might be good for airport arrivals, right? So maybe you flew to the airport, but then you need to walk to the tram terminal. Okay, so you have to adapt to that.
So you have to board the plane and check in. You won't be able to bring much luggage because they ca n't transport luggage yet. And when you're actually wearing your seatbelt and ready to, you know, start taxiing for takeoff, and you're in line for traffic, it's going to take another 20 minutes, 30 minutes .
So when you actually add up those time intervals, I don't know how desirable this one is. I don't think that's a good example, because I do n't think you're saving much time. They should have a better example than that. I don't know anything about Sydney, but let's see what they're doing here. Taking a quick stroll, about 50 minutes.
Look, this is a better example because it shows how you have to take this strange, circular route to drive. 6 minutes instead of 50, pretty cool. Singapore, let's try this. Airport . Look, I like this. Okay, this is a tunnel. Ah, well, they do have a tunnel, though. 45 minutes instead of 9. But still, the whole professional check-in process feels like a novelty, right?
If they have a tunnel, if you have the car, you can very well use it. I do n't know. So far, this isn't very exciting. They really should choose better routes. You know, something where there's no bridge to cross the water. 90 minutes instead of 19. Okay, maybe. In any case, it's coming. It will be part of the future.
Which company should I choose? I do n't know, because the problem with air travel is that it's a commodity. These are probably companies that are losing money. So, at best , you become a manufacturer and sell the product to the operators, because I think the company probably loses a lot of money, because, you know, how are people going to feel motivated to pay for those flights unless they're substantially cheaper, because you don't save much time.
Passengers between, say, Newark and JFK or JFK and Westchester as a single company? So, first of all, there were four passengers on the plane. Instead of going out and checking it out, why don't you come? You should fly with us. I would love. It's an incredible experience. What does it mean to use a parachute?
You don't need one. You don't need to. You can if you want, but I do n't think you need one. We ... I mean, we've had years of safety requirement testing to get us to the level where we can transport passengers. This is the electric aircraft company that just completed a flight from the Hamptons to JFK.
The point is that the recurring cost of the flight is almost negligible. So, as I mentioned after the flight, going from East Hampton to JFK cost about $ 7 in electricity. It's transformative. But the total cost is what matters to us. And it's super safe because the security standard keeps getting higher.
And this will completely change the aerospace industry. Well, let me ask the obvious question here. We talk about range anxiety all the time when it comes to electric vehicles. When we talk about electric aircraft, I have to imagine that the anxiety is at least ten times greater. Actually, it's like 1/10.
Okay, tell me. In aviation, we have mandatory requirements to carry extra power. This is measured in hours, right? Typically 45 minutes plus an alternative. In other words, an extra hour of fuel. So, wherever you go, you plan for that. You refuel properly so that, upon landing, you have about an hour's worth of extra fuel to deal with any contingencies.
Unlike driving on the highway, it's a very controlled environment. Therefore, autonomy anxiety is irrelevant in this case. Unless you go to Newark, because then you can just keep driving around for hours. You can, but remember that you can land at Teterboro, in Essex, or anywhere else if you start running low on fuel, just like you would in a regular plane.
So, let me ask you how advanced the technology is. Like, can you build a bunch of these? Can you start flying soon? Are you recharging something that takes forever? So, we built a charging network across the United States . We covered the entire East Coast, we even went to the West Coast. Charging takes about the same amount of time.
Yes, Embraer has investments in air taxis. I can't remember which brand. We should do some research. Flight duration. So, you can go all the way along the East Coast. We've flown all over the country and back. We have all types of flights happening. It's not a limitation. In fact, it's a great opportunity for our business because we own the charging network.
So, we're not just the aerospace company, we're also the fuel supplier. Yes, that's fair. Eve. Eve Air Mobility. You expect to obtain FAA certification by 2027. There is some skepticism out there that this will happen that quickly. So, what gives you the confidence that this can happen in the next year or two?
Yes. I mean, quietly in Vermont, we're leading the way ahead of all our public peers in certification and entry into service. So, we obtained market research that allowed us to transport the passengers last week. This is a step towards certification . We have items like the most difficult ones, the motors, the inverters, the new things that are in type inspection authorization, which are one step away from certification now, which are far ahead of the rest of the industry.
So, we're not a large marketing company, we're a technology company. I am an engineer, I am a pilot, and we have been working discreetly and doing the right things to create a safe, reliable aircraft that can be produced repeatedly. And for the installation, we built a huge aerospace manufacturing facility specifically for electric aviation in Vermont.
And in fact, it's almost 200,000 square feet and will manufacture 300 aircraft per year. Wow. You raised, I mean, what I consider a ton of money at the end of last year, right? Over $300 million in Series C. How fast can you spend that? When will you need funding next? Yes, we are fortunate, as we raised approximately $1.2 billion in total and have an import loan from Bank of America.
They have 800 employees. A little less than one and a half billion dollars of capital went into the company. However, uniquely in this space, we are making money by selling chargers, selling propulsion systems, and selling batteries. Therefore, our cash burn is quite low right now. We'll probably do another funding round later this year, but we don't need capital right now.
We are very well funded and we are paying for many of the things we do through sales of our technology. Well, with that in mind, let's talk about the future of the business. Can you imagine yourself going public someday? Would you be open to being sold to perhaps a Boeing or an Airbus or one of the other major aircraft manufacturers out there?
What does the future look like? Please tell us now on national television. So, I will certainly do that. So, yes, I can imagine that the course will likely intersect with a publicly traded company at some point. No , the answer is that I have no interest in selling the company. This is something I've been dreaming about.
This is my college graduation thesis , finally coming to fruition more than 20 years later, doing something transformative for his good. This is incredible and changing the way the world will move. I have no interest in getting out of this. That's amazing. I mean, I can fly the planes, I can build them, I can share this with the people I care about.
All of our employees fly. This is like a dream come true. I have no interest in getting out of this. Dude, I don't disagree, and honestly, I'm going to try to take a weekend to drive there and check out their facilities in Vermont. I have a battery. I'll come there to pick you up. That would be fantastic.
I live near Westchester Airport. We will take the electric plane to the electric plane facility. When, when, when, when will electric planes replace fossil fuel-powered jets? So, it will be regional mobility. We'll be less than 200 miles away, then we'll go to 400 miles by the 2030s. Then we'll be flying along the East Coast by the mid- 2030s.
By 2040, 2045, we'll be traveling across the country in electric planes. Energy storage continues to increase. Electric aviation is really well-suited for high altitudes because you don't need to breathe, right? So, the aircraft can fly very fast, very high. Therefore, the cost of operation plummets, and the savings drive scalability.
This is similar to what we were discussing yesterday in comparison to the Archer Joby . More easily suited for autonomous flight as well, or even, you know , ground control. A modern, fully fly-by-wire aircraft, meaning it is computer-controlled, makes autonomy a natural choice for an electric plane.
We have flown our aircraft autonomously numerous times. The military is already buying our autonomous aircraft. Okay , Kyle. I think we're just getting started, but we have to stop here. I hope to have you back. That's amazing. I think that's really cool.
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