From the saying of “where there are cents, rands and dollars can be made” to “loss is limited to 100%, but growth can be limitless”, believe it or not, the future is full of the impossibilities of today and yesterday.
Flying cars, which once seemed “impossible”, may soon become a reality. As more people are expected to move into the inner cities, this (according to the Global and China Flying Car Industry 2020-2026 Report) not only adds pressure on urban ground transportation but will also stimulate the flying car market.
Globally, the market is expected to reach a value of $320 billion by 2030. With the industry becoming more competitive, calls for innovation and technology in the space are rising. We look into two companies in the American market positioning themselves as making the impossibilities of self-driving air transport and flying cars a reality.
Xpeng Inc (XPEV)
From the traditional road Electric Vehicles (EVs) to flying cars, Xpeng has started shifting into the electrical vertical takeoff and landing (EVTOL) innovations space. This is through its wholly-owned subsidiary XPeng Huitian. In 2021, after successfully testing the X2 prototype, Xpeng revealed one of its latest concepts.
Expected to be a road-capable flying car that's cost-effective, the company added that it's planning mass production of the new vehicle by 2024.
Commenting on the progress and unveiling of the new concept, XPeng CEO He Xiaopeng said: "Our exploration of more efficient, safer, carbon-neutral mobility solutions goes far beyond just smart EVs, and is the cornerstone of our long-term competitive advantages" and "We strive to implement cutting-edge mobility technologies in mass-production models for the benefit of our customers."
During the company's 2021 third quarter (Q3), Xpeng revenue increased by over 187.4% to US$887.7 million, representing a 52.1% increase from 2021 Q2, with revenue from vehicle sales standing at US$847.5 million. The cash balance for the quarter was US$7.03 billion.
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Boeing Co/The (BA)
Working on making pilotless flying taxis a reality by 2027, in January 2022 Boeing invested US$450 million in Wisk Aero, an air vehicle company with a different focus in the industry. The company is owned by Boeing and Kitty Hawk, with Boeing standing as the major shareholder.
According to the group, the funding provided by Boeing is expected to position Wisk as "one of the most well-funded" companies in the industry. In addition, Wisk will also be able to use the funding to enter an “intensive” growth phase by next year. The goal for Wisk is to operate as one of the largest companies within the EVTOL space.
Boeing's chief strategy officer, Marc Allen, added that the investment by Boeing in Wisk "may yield improvements that could be applied across Boeing's portfolio.
"With this investment, we are reconfirming our belief in Wisk's business and the importance of their work in pioneering all-electric, AI-driven, autonomous capability for the aerospace industry. Autonomy is the key to unlocking scale across all advanced air mobility (AAM) applications, from passenger to cargo and beyond. That's why straight-to-autonomy is a core first principle. Boeing and Wisk have been at the forefront of AAM innovation for more than a decade, and will continue to lead in the years ahead."
In October 2021, as the company started recovering from the global pandemic, Boeing reported revenue sitting at $62.3 billion vs $58.2 billion in 2020. Loss per share was reduced from $23.25 to $9.44 per share. The cash balance during the period was $16.2 billion ($8 billion cash and $8.2 billion securities).
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Roundup
As these companies continue to invest more into the aerospace industry, the legislation (Law) barriers are important to consider, which may prolong the production and profitability of the products and operations. With the number of vehicles increasing on the road, we may expect this to contribute to making the industry profitable for investors.
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Sources – EasyResearch, Xpeng Inc, Boeing Co/The, Dezeen, Electric For The People.
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