Vertical Aerospace (NYSE:EVTL) stock is soaring nearly 20% in morning trading today on preorder news for 50 of its VX4 electric vertical takeoff and landing (eVTOL) aircraft. These zero-emission vehicles were bought by FLYINGGROUP, a company that provides chartered, private or shared flights and “operates from aircraft bases across Europe and the Middle East.”
Vertical reports that this deal is its “first commercial agreement within the business aviation market.” However, multiple customers — including big names like American Airlines (NASDAQ:AAL) and Virgin Atlantic — are also already in the company’s “market-leading pre-order book.” As a result of the agreement with FLYINGGROUP, Vertical’s preorders now total 1,400 aircraft at a total value of $5.6 billion.
Here’s what else investors should know about EVTL stock moving forward.
EVTL Stock: Vertical Aerospace and the VX4
On its website, Vertical calls the VX4 faster, greener and cheaper. The aircraft can fly up to 200 miles per hour (mph). It has zero emissions and a “low cost per passenger mile” as well.
Utilizing an electric powertrain, the aircraft is 100 times quieter than helicopters. According to the company, the VX4 provides “urban air mobility to a whole range of passengers.”
Launched in 2016, Vertical seeks “to create the most advanced eVTOL in the world.” The company was founded by Stephen Fitzpatrick. Vertical is not Fitzpatrick’s first rodeo, either. Back in 2009, the founder started OVO Energy, which became the “biggest independent provider of power” in the United Kingdom.
BMO Capital Is Upbeat on eVTOLs
What should you think of EVTL stock and the future of eVTOL vehicles? Some analysts have shared extensive thoughts on the industry. BMO Capital analysts wrote the following in February 2022:
“We believe that eVTOLs could be used as replacements for the world’s aging fleet of helicopters. They are significantly less expensive to operate and generate about one percent of the noise […] and have similar range.”
So far this year, EVTL stock has tumbled 50%. Shares are also down 70% over the last 12 months.
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On the date of publication, Larry Ramer did not hold (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.