This Flying Car Stock Just Got a $250 Million Boost. Should You Buy Shares Now?

Yahoo

23-06-2025

Once confined to science fiction, flying cars are steadily approaching commercial reality. Urban air mobility (UAM) is gaining serious altitude, with countries like the United States and Saudi Arabia actively building launchpads for electric vertical takeoff and landing (eVTOL) aircraft. Industry players like Archer Aviation (ACHR) are already capturing investor attention, and President Donald Trump just reignited momentum with executive orders aimed at unlocking America's airborne future. This signals that the next stage of flight may arrive sooner than expected.
Meanwhile, Eve Holding (EVEX) — a spinoff from aerospace giant Embraer S.A. (ERJ) — just signed a $250 million deal with Brazil's Revo to sell 50 eVTOL vehicles. These air taxis are designed to shuttle passengers to and from airports, cutting traffic out of the equation, with first deliveries expected in the fourth quarter of 2027.
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Backed by Embraer, global deals, and millions in funding, Eve is soaring with 2,900 preorders and testing in progress. Trump's executive order also boosts its runway. Yet with no revenue and a high burn rate, turbulence remains.
So, as the skies crowd with hype, should investors buy into Eve's flight plan or stay grounded?
Eve Holding is an aerospace firm headquartered in Melbourne, Florida, with additional operations in Brazil. Specializing in the development of eVTOL aircraft, Eve also offers a suite of services, including maintenance, pilot training and an Urban Air Traffic Management system to integrate eVTOLs into urban airspace.
Although still pre‑revenue and operating at a net loss, the company is well‑capitalized and strategically positioned to lead in the emerging UAM sector. With a market capitalization of $1.56 billion, investors are betting on Eve's potential to redefine transportation.
EVEX stock has seen a significant run lately, evidenced by a 50% rise over the past three months, largely outperforming the broader S&P 500 Index's ($SPX) 5.4% gain over the same period. Eve's climb has been driven by a wave of positive milestones causing heightened investor interest.
Reported on May 12, Eve's fiscal first-quarter earnings results tell a story of ambition flying ahead of revenue. Still pre-revenue but moving fast, the eVTOL maker posted a net loss of $48.8 million, nearly doubling from last year's losses. The culprit was a sharp ramp-up in research and development, as Eve poured $44.7 million into developing its first full-scale flying prototype. Selling, general, and administrative (SG&A) costs also rose to $7.9 million as Eve staffed up and prepped its production site in Taubaté, Brazil.
Yet, the burn is getting smarter. Eve improved its cash efficiency, spending $25.3 million this quarter versus $35.9 million a year ago, thanks to friendly terms under its Master Service Agreement (MSA) with Embraer. It ended Q1 with $287.6 million in cash and equivalents and debt standing at $142.3 million.
Operational momentum is strong as well. Ground testing is nearly complete, and with non-binding preorders worth roughly $14 billion, demand is already hovering. Letters of Intent (LOIs) span nine countries, with the Americas dominating Eve's radar. As the company guides toward $200 million in full-year cash burn, at the lower end of projections, liquidity management remains mission-critical.
Analysts monitoring the company anticipate it to stay in the red, with a per-share loss estimated to be around $0.64 for fiscal 2025 and remaining unchanged in fiscal 2026.
HC Wainwright & Co. analyst Amit Dayal recently reaffirmed a 'Buy' rating on EVEX stock, raising his price target from $6 to a Street-high $8. That represents a 52% increase from current levels, reflecting heightened confidence in the company's potential.
Wall Street is majorly bullish on Eve. Overall, EVEX stock has a consensus 'Strong Buy' rating. Of the seven analysts covering shares, five advise a 'Strong Buy' rating while the remaining two analysts are on the sidelines with 'Hold' ratings.
The average analyst price target for EVEX is $6.40, indicating potential upside of more than 21%.
On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com