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Embraer’s Eve says not rushing to launch flying taxis

By:
Reuters
Updated: Jun 1, 2022, 01:36 UTC

SAO JOSE DOS CAMPOS, Brazil (Reuters) - Electric aircraft company Eve Holding Inc, which is controlled by Brazil's Embraer SA, on Tuesday announced a partnership with Porsche Consulting as it looks to define its manufacturing, logistics and supply chain strategies.

Embraer’s Eve says not rushing to launch flying taxis

By Gabriel Araujo

SAO JOSE DOS CAMPOS, Brazil (Reuters) -Electric aircraft company Eve Holding Inc, controlled by Brazil’s Embraer SA, is not rushing to launch its flying taxi prototype, co-CEO Andre Stein said on Tuesday.

Eve debuted on the New York Stock Exchange this month after combining its business with Zanite Acquisition Corp, raising $377 million in the process to manufacture its flying taxis.

Stein said during a press event that Eve was focused on making sure it was going in the “right direction” rather than moving quickly to show investors a prototype.

“We are not rushing to be the first to fly; we are not rushing to be the first to enter the market. We are doing it right,” Stein said.

Eve has orders from 19 clients for 1,825 aircraft and expects to launch its electric vertical take-off and landing aircraft (eVTOL) by 2026.

Stein said that, given Eve’s current cash burn rate, the company had a “good set of years” before it would need to raise more money.

“If and when we do, we can wait for the right time on the market. … If it makes sense to go to the stock market again, we’ll do it,” he said, noting that the company could also raise capital from Brazilian state development bank BNDES.

Analysts at Itau BBA noted this month that Eve would “likely have to raise capital again before its eVTOL is fully ready to be commercialized” as the company had previously forecast the project would need $540 million in funding.

Eve also announced Tuesday a new partnership with Porsche Consulting, a consulting firm linked to German automaker Porsche, as it looked to define its manufacturing, logistics and supply chain strategies.

It said the companies would “combine their aeronautic and automotive expertise to support Eve’s implementation plan”.

This came as parent company Embraer told journalists it had already won enough aircraft orders to meet the top end of its 2022 target revenue range.

The planemaker also said it was still working on a 22-aircraft order from the Brazilian Air Force for the KC-390 series, after officials signaled the service wanted to slim the order down to 15.

(Reporting by Gabriel Araujo; Editing by Christian Plumb and Bradley Perrett)

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