Wall Street found an even more whimsical combination than blank check companies and electric vehicles: blank check companies and Jetsons-style flying taxis. Although the idea is promising, it is better that investors hope that this is not very glamorous in one.
On Wednesday, electric air taxi developer Archer announced a merger with Atlas Crest Investment, a special-purpose acquisition company, or SPAC, led by billionaire investment banker Ken Moelis. In a SPAC, investors give money to a publicly traded sponsor in the hope that it will find an attractive acquisition target, without knowing what it will be. The SPAC frenzy of the past few months has focused on electric vehicles, as well as other “cool” startups, like the Virgin Galactic space tourism venture.
Archer will have a valuation of $ 3.8 billion and receive $ 1.1 billion in extra funding. The company’s proposal is to develop an electric vertical take-off and landing vehicle, or eVTOL, that can fly four passengers in congested urban areas for distances up to 60 miles. Futurists have long anticipated that people will fly to work as in the famous Hanna-Barbera cartoon, “The Jetsons”. Now, investors and companies are taking this seriously.
United Airlines and Mesa Airlines said on Wednesday that they had placed an order for $ 1 billion for Archer’s aircraft. The idea is to transport people from populated areas to United centers – for example, from Hollywood to Los Angeles International Airport – by 2024, reducing carbon emissions per passenger by about 50%. Archer plans to manufacture 10 vehicles that year and increase it to 250 by 2025.
Companies trying to develop air taxis range from aerospace and airline manufacturers to car manufacturers and technology companies. There are hundreds of designs, and even the United States Air Force has partnered with some projects.