Morgan Stanley auto analyst Adam Jonas has predicted that Elon Musk may be “tempted to solve” another “problem” by leveraging Tesla’s expertise in artificial intelligence (AI), batteries and manufacturing. As per Jones, the problem is “commercialising air taxis,” also known as electric vertical take-off and landing (eVTOL) vehicles.
In his latest research note, Jonas argued that Tesla may enter the nascent eVTOL market as these aircraft have long been predicted to revolutionise urban transport, yet even leading developers like Archer Aviation are still in the developmental phase.
Last week, Archer’s Midnight prototype, slated for its first deliveries later this year to Abu Dhabi, successfully completed a piloted flight test.
Tesla may not be interested in eVTOL anytime soon
According to a report by Fortune, while Jonas believes that solving this technological challenge aligns with the interests of Tesla engineers, he acknowledged that Tesla has indicated it is currently too stretched to seriously consider an eVTOL venture, without outright refuting the idea.
The US government is reportedly keen on supporting the growth of flying cars. Transportation Secretary Sean Duffy posted this week, “eVOTLs [sic] are going to fundamentally transform how the public travels. Let’s make sure the US leads the way.”
Why eVTOL market may not a profitable bet yet
Currently, the eVTOL market faces significant hurdles. Several promising startups, including Lilium and Volocopter, have encountered financial difficulties before establishing commercially viable services. A key challenge in achieving stringent safety standards while ensuring full autonomy, as scaling the business typically requires removing costly pilots from the equation. Additionally, there aren’t enough customers with pilot licenses to support widespread adoption.
