While Archer Aviation (NYSE:ACHR) is gearing up to change the future of air transportation, a new competitor is rising from an often-overlooked state. Beta Technologies is a name that could apply to many industries, but this startup is looking to secure a piece of the air taxi market.
Founded in 2017, Beta is based in Burlington, Vermont and manufactures electric vertical takeoff and landing (eVTOL) vehicles. This week, the company announced a major step forward as it announced the opening of a new production facility. This could give Beta the edge it needs to compete with rivals such as Archer and Joby Aviation (NYSE:JOBY) as the eVTOL market continues to heat up.
What’s Happening With ACHR Stock
This week isn’t off to a great start for companies in the air taxi space. ACHR stock is still struggling today after falling yesterday, and JOBY isn’t faring any better. These declines likely have more to do with negative market momentum than anything else. But that doesn’t mean that investors shouldn’t be watching this new competitor closely.
As Beta isn’t public, it may not get as much attention as its rivals that trade on the New York Stock Exchange. It also operates out of a rural corner of Vermont, an area that doesn’t draw as many headlines as Silicon Valley. However, the company may be about to emerge as a new innovator in the eVTOL production space. According to Axios, its new Burlington plant will ultimately produce up to 300 models of Beta’s signature ALIA aircraft on an annual basis. It also operates on a net-zero basis, “powered by a combination of geothermal wells and rooftop solar.” The outlet also notes that Beta’s leadership feels that it can double production there if the need arises later.
All three companies are working to secure regulatory approval to begin commercial operations with passengers. This will likely determine which eVTOL producer takes to the skies first. InvestorPlace‘s Luke Lango has stated that sees 2024 as a transformative year for the fast-growing sector, and he cited Joby as a likely winner. But Beta is in an excellent position to rival these public companies. When the company celebrated the facility’s opening yesterday, the list of attendees included Vermont Governor Phil Scott, as well as two sitting Senators and one former one. According to the Vermont Digger, Senator Peter Welch described the event as “transformative in the aviation industry.”
Ready for Takeoff
While Beta is making impressive progress, that doesn’t necessarily mean that it is an immediate threat to companies like Archer. Because it operates on the East Coast, this startup will likely cater primarily to local consumers when it secures regulatory approval for commercial flights. For that reason, it isn’t too likely to negatively impact ACHR stock.
Both Archer and Joby are based in California and will probably begin commercial operations in local and nearby cities. Should they decide to expand into markets such as New York City and Boston, Beta may become more of a concern. But for now, it shouldn’t have much of an impact on JOBY or ACHR stock.
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.
