By Haddon Libby
Electric vertical takeoff and landing (eVTOL) aircraft are poised to revolutionize urban travel, with XPeng AeroHT, Archer Aviation, and Joby Aviation leading the charge. These battery-powered vehicles, capable of zipping above traffic at speeds up to 150 mph, promise to cut commutes and open new transport avenues. The eVTOL market sell 100 to 600 units globally this year , per MarketsandMarkets, a global market research firm.
XPeng AeroHT, a unit of Chinese EV maker XPeng Motors, is pushing its “Land Aircraft Carrier,” a $280,000 hybrid pairing a six-wheel electric ground module with a two-seat eVTOL. The carbon-fiber air module, with six rotors and a 270 degree-view cockpit, supports five to six flights per charge and boasts intuitive controls learnable in five minutes. Trips can last up to 35 minutes at a rate of 80 mph. The eVTOL can handle a total weight of up to 320 pounds. These eVTOLs are expected to fly at a height of 300 feet although they can fly as high as 3,000. The vehicle has both automatic and manual controls.
After a manned flight at the 2024 China Airshow, XPeng secured over 3,000 pre-orders. Production is slated for 2026 in Guangzhou, with up to 100 units made this year. Safety features include a low-altitude parachute in the event of a catastrophic emergency need.
Archer Aviation’s Midnight eVTOL targets urban air taxis. The four-passenger craft, with 12 motors, offers a 100-mile range and 20-minute flights—think Newark to Manhattan in 15 minutes. Archer plans piloted flights in Abu Dhabi this year with commercial services across the United Arab Emirates by year-end. The venture is backed by a $1 billion United Airlines deal and Stellantis manufacturing. Here stateside, the Federal Aviation Administration (FAA) is expected to limit use until infrastructure is in place to support the aircraft. Nevertheless, the company expects to be used in New York City next year. As wild as it may sound, Archer is the official 2028 Los Angeles Olympics’ air taxi partner.
Joby Aviation, another front-runner in the field, is closer to a large market roll-out with its five-seat eVTOL. Certified for commercial operations by the FAA in 2024, it’s designed for 100-mile trips at 200 mph. Joby has a $131 million Pentagon contract and a Delta Air Lines partnership. With a Toyota-backed factory in California, Joby aims to sell up to 200 units annually by next year with an initial focus on the San Francisco-San Jose area. Joby’s lead in piloted testing gives its eVTOL an edge.
China’s state-backed vertiport network gives XPeng a home-turf advantage, while Archer and Joby focus on the US and UAE markets. While these three are the leaders, there are more than 800 eVTOLs in development globally.
Battery advances and AI flight controls have helped to advance eVTOLs yet major challenges to a widespread rollout remain. When it comes to city use, eVTOLs will need vertiports. Vertiports are virtually non-existent outside China, and urban airspace demands precision to ensure safety. Public trust hinges on crash-proof designs.
Environmental claims also face scrutiny. eVTOLs are electric so they have lower emissions than most cars yet the carbon footprint of batteries could offset these gains unless the power grid also moves toward renewable energy.
To get to the finish line, Archer’s has a $3 billion war chest with Joby’s at half of that. Meanwhile China’s XPeng is backed by Alibaba.
The market is projected to have sales of $17 billion in ten year.
At present, XPeng is expected to dominate consumer eVTOLs due to its low-price disrupting norms. While the $280,000 is far from inexpensive, it is in the world of air travel. Archer and Joby are expected to focus on commercial use due to price tags that are $5 to $10 million.
As cities choke on traffic, these low altitude aviation pioneers are betting that eVTOLs are an important part of future transportation.
Haddon Libby is the Founder and Chief Investment Officer of Winslow Drake, a locally-based Registered Investment Advisory firm. Find out why RIAs are better able to serve your needs than a broker. Visit www.WinslowDrake.com.
