Eve debuts on the stock market with shares down 23%

Despite the bad start, Embraer believes that the eVTOL aircraft company could reach the same market value as its owner

The expectation of a grand opening got in the way, despite the party atmosphere created by Embraer at Eve Holding’s debut on the New York Stock Exchange on Tuesday.

The Brazilian manufacturer even took to Wall Street an eVTOL simulator to mark the important moment, in which the startup teamed up with Zanite, a special-purpose company from the US.

However, the new company’s shares debuted down 23.5% to $8.66. The bad start did not worry Embraer’s CEO, Francisco Gomes Neto, who told the newspaper O Estado de Sao Paulo that he believed that Eve could equal the market value of its main shareholder within 10 years – analysts even pointed out that the new company would reach surpass that value.

The skepticism of investors is partly explained by the long road Urban Air Mobility has to go through to become a potentially profitable business.

Eve’s debut on the NY Stock Exchange (Embraer)

Despite accumulating 1,825 purchase intentions for its four-seat Eve-100 model, Eve should only begin operating the aircraft in 2026 – that, of course, if several world civil aviation authorities approve the eVTOL flight. The FAA, for an example, already signals that a new class of certification will be needed for electric aircraft like that.

An entire support infrastructure will have to be developed and deployed so that the small electric planes can operate safely and efficiently. There is also the issue of acceptance of the new modal of air transport, since there are few prototypes and no testing operations in operation in the world.

Eve’s devaluation is nothing new in the segment. Other similar startups have also been viewed with suspicion for now.

Eve Holding

Embraer’s situation, however, is worrying because to date no full-scale prototype has emerged. Eve has only tested smaller-scale models, while some competitors have been flying test aircraft for a long time.

Eve’s co-CEO Gerard DeMuro told Flight Global that Eve is not focused on introducing the first Eve-100 anytime soon. “We are not rushing to fly a prototype,” he said, explaining that the company prefers to ensure systems maturity before building a full-size aircraft.

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