The select group of eVTOL aircraft developers that have so far touched down on Wall Street following a SPAC-merger-based flight path to equity flotations has brought with it some improved visibility regarding the financial realities of the advanced air mobility (AAM) gold rush. Starting last week, we’ve seen the first of the start-ups-gone-public—Archer, Joby, and Lilium—post quarterly financial results for the period ending on September 30, and, predictably, the bottom lines remain resolutely red with the prospect of returns on investment still some three years away.
Joby’s recently published Q3 2021 stakeholder letter is a prime example of how reporting requirements have brought transparency. At face value, the California-based start-up seems to be on a firm footing as it strives to bring its four-passenger eVTOL into commercial service in 2024.
It reported $1.4 billion cash in hand, which is almost two and three times the reserves now held by Archer and Lilium, respectively. The company acknowledges that its entirely anticipated third-quarter EBITDA loss of $55.9 million resulted mainly from the investment it is making in talent, with almost 1,000 employees now on the payroll. Cutting-edge aerospace engineering doesn’t come cheap, especially with inflation getting a grip on major economies in North America and Europe.
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