Despite the sharp drop in its debut on the New York Stock Exchange, the partners of Eve — Embraer’s “flying cars” startup — are betting on the company’s long-term potential, which seeks to solve two current problems: the chaotic traffic in large cities and the need to reduce carbon emissions.
“In ten years, Eve may have the size of Embraer today,” said the president of the Brazilian aeronautical manufacturer, Francisco Gomes Neto, in an interview with Estadão/Broadcast.
Yesterday, while executives and investors participated in a stock listing event on Wall Street — with the right to an eVTOL (Electric Vertical Takeoff and Landing Vehicle) simulator — the startup’s shares debuted with a fall.
At the end of the day, the shares fell 23.5%, quoted at US$ 8.66.
Trend
The bad start in the stock market, in fact, follows a movement that has been observed for some months in the segment. All companies that develop eVTOLs and go public register a devaluation of their shares in the financial market.
Not counting Eve, the average decline is 57.5%.
According to the president of Embraer, the association with the special purpose company (Spac) Zanite will help accelerate Eve’s business.
It was this merger, approved last week, that made Eve’s New York listing possible.
However, the market has also shown distrust towards Spacs. Of a total of 199 businesses that merged with special-purpose companies to reach the American Stock Exchange, only 11% have increased since their debut, according to a study by Renaissance Capital.
On average, the devaluation is 43%.
Eve is not expected to enter service until 2026. Initially, the eVTOL will hold four people, in addition to the pilot. In the future, however, Eve aims for an autonomous flying car, according to the president of Embraer. But such a step should only be taken after 2030, according to the executive.
Challenges
The strong downturn is also backed by the long-term perspective of the business. eVTOL companies face the challenge of making their products viable and implementing them in the market.
They need to develop the necessary technologies and also obtain certification from regulatory bodies, in addition to creating the infrastructure for the places where the aircraft will land, take off and be recharged.
Regarding the certification, Gomes stated that the company is already working with the National Civil Aviation Agency (Anac), in Brazil, and with authorities in the US and Europe.
The company already has 1,800 letters of intent in its hands, totaling US$ 5.4 billion in orders, made by 17 customers from different regions of the world – among them are aviation operators and leasing companies.
Eve currently has a capital of US$ 380 million, resources considered sufficient for the company to maintain itself until the “flying cars” certification, which is expected to occur in 2025.
In other words, new rounds of investment are ruled out, at least for the time being.
Altamiro Silva Júnior collaborated. The information is from the newspaper. The State of São Paulo.
Source: CNN Brasil
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