SPECIAL REPORT The Top 7 Stocks for 2024

EVTL Stock Alert: What Is Going on With Red-Hot Vertical Aerospace Today?


Analysts have predicted that 2022 will be a year of slower growth for the electric vehicle (EV) sector, at least on the ground. In the sky, it’s likely to be a different story. While more consumers tend to be concerned with road vehicles, the companies that produce electric vertical takeoff and landing vehicles (eVTOLs) have also been hard at work. There’s plenty of reason to suspect that the new year will see them take flight in more ways than one. Vertical Aerospace (NYSE:EVTL) hasn’t wasted much time taking off. EVTL stock has been rising today as the buzz surrounding it has increased.

The logo for Vertical Aerospace (EVTL) displayed on a smartphone screen.
Source: T. Schneider / Shutterstock.com

What’s Happening With EVTL Stock

While it didn’t end 2021 on a particularly good note, EVTL stock has displayed impressive growth today, rising more than 50% during morning trading hours. This morning also saw the stock halt trading, though, for reasons that are still unclear. While it didn’t maintain that type of growth once trading resumed, the stock is still up by more than 23% for the day as of this writing with gains for the week at more than 17%. That said, even with today’s growth spurt, EVTL is still down more than 19% for the month.

With that in mind, it’s worth noting that EVTL came public by way of a special purpose acquisition company (SPAC) merger less than one month ago, on Dec. 17, 2021. The stock didn’t have a bad debut, although it also didn’t have a great one, with shares failing to rise above 20%. Since then, the stock’s journey has been turbulent. In fact, this is the first day since that it has found any real momentum.

Why It Matters

As EVTL stock has unexpectedly risen today, social media has been buzzing. Twitter (NYSE:TWTR) users have been quick to speculate on what it all means. Many have touted the theory that EVTL is marked for its short potential. Given the data from Fintel, which lists 58% of Vertical Aerospace’s total shares being sold short, that possibility seems increasingly likely. The halting of trading that we witnessed earlier today further hints toward the possibility that the company may be anticipating a short play.

While it’s true that the social media momentum surrounding the stock is helping drive it upward, the trend that we’re seeing has all the markings of a company being primed for a short. We shouldn’t forget that many investors took the easy way out regarding the EVTL stock initial public offering (IPO), opting to redeem their shares early on as opposed to staying invested.

A few hours ago, Twitter users were celebrating their ability to buy EVTL stock at low prices. But since prices began to fall, that trend seems to have ceased, further pointing to this being a potential short play and not an opportunity to buy the dip.

What It Means

As is often the case when stocks begin gaining social media attention, all we can do is wait and see. While plenty of signs are there, EVTL stock could still surprise us. The company does boast an impressive list of pre-orders. However, so far that hasn’t been enough to help achieve growth that feels sustainable.

Ironically, some of EVTL’s peers such as Joby Aviation (NYSE:JOBY) and Blade Air Mobility (NASDAQ:BLDE), which are considered to have more potential for growth, are both in the red today. Investors should be keeping their eyes on the skies. But they might be best served to keep watching social media for news of EVTL.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com  Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

Article printed from InvestorPlace Media, https://investorplace.com/2022/01/evtl-stock-alert-what-is-going-on-with-red-hot-vertical-aerospace-today/.

©2024 InvestorPlace Media, LLC