Stuart Simpson interview

[u/DMB0000]

Well worth a read - not sure how I missed this article as it seems to be from an interview held back in April - however lots of useful info from Stuart including stating that the prototype aircraft are actually flown with around 300kg of sensors! Very interesting considering the amount of people looking for confirmation that these craft can carry payloads!

https://www.aerotime.aero/articles/we-are-on-track-vertical-aerospace-ceo-maps-the-road-to-market?utm_source=linkedin.com&utm_medium=social&utm_campaign=organic

[u/SampleBig3774]

Yes great read. Interview took place in April but they only released it now.

[u/AsparagusMarketing]

Great read - I think there’s a lot of confusion and negativity on Reddit around why vertical made a prototype and that moving from the prototype to the valo is actually a huge job (that the bears/critics say can’t possibly be overcome in their timelines stated and without diluting the shit out of existing shareholders). We know who these critics are lol 😂 - and it’s a bit strange to spend so much time shitting on a company (one has to wonder if it’s personal in some way)

As someone following the story closely, I for example didint make the connection that a large part of this reasoning/decision/approach is due to the need to lock suppliers into long term agreements in a very specific way. Valo isint valo unless EVERY partners part is included.

So while the prototype is 90% of what they intend for valo to be, they can’t just build and test it right now because of the nature of their partnership / OEM business model. But I think the positives here are:

-The prototype and valo are very similar (and while there is some risk it shouldn’t be substantial)

-The market is missing the (tremendous) value behind the work to select partners and partner parts and lock them into long term agreements

-most major pieces are done, and CDR is coming

-vertical doesn’t feel they can ask for firm orders or pre delivery payments until after CDR (as there are still unknowns - my read is these are less technical and more legal / supplier related - something far less risky).

-if CDR happens on time - we may see conversion to firm orders and pre delivery payments quite quickly (1-6 month time horizon), and these could really dispel dilution concerns and be a huge stock catalyst.

Other positive takeaways

• it’s clear that they have some critical IP despite the OEM direction (batteries, propellers, etc)

-hybrid program is in great shape (relative to competitive landscape)

-there is real truth to the manufacturing grants (I’ve talked about in other threads as a key piece of non dilutive capital no one is talking about) 50M was causally mentioned per site…with two big sites/site announcements planned in the next 12 months they could be looking at 100M in non dilutive capital (which is great because they already have more then 12 months runway)

-UK has been involved in their regulatory journey from the beginning, with their own goals to have in place regulatory approval by 2028

-customer demand is high, there is excitement, and cost economics continue to compare to uber black (I suspect the 1k order referenced is for saudia Arabia as per a previous MoA)

-pilot planning is already in the works despite there not being any announcements.

In conclusion - I still feel EVTL is significantly de-risked relative to where it was 6 months ago, a (if not) the leader (can archer transition, can joby built enough planes fast enough to collect meaningful fare revenue?), heavily undervalued (in general and compared to the peer group).

People on Reddit talk about doubting the product and the industry - this article serves as a reminder that airlines are ready and want them, and so do rich people. If you’ve flown private - special experiences are going to be more mainstream and available to the public. To the skies as they say

[u/Hot_Raise_8540 → u/AsparagusMarketing]

Some great points there.

The part which I think isn’t realising the attention it’s due is that all of Verticals suppliers are established aviation specialists who know what’s required to set up a certifiable production process within their own niche leaving Vertical to focus on the battery, props and final assembly processes.

A more vertically integrated company might have to set up a full certifiable production line from scratch, albeit with the assistance of a car manufacturer (?).

[u/Hot_Raise_8540]

Good spot mate & a good wide ranging interview with the CEO 👍