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Goldman Sachs Bets Big on BETA eVTOL
4 Dec
Summary
- Goldman Sachs named BETA Technologies its top EVTOL pick.
- BETA's stepwise certification strategy accelerates revenue.
- BETA's vertically integrated model is favored by Goldman.
Goldman Sachs has identified BETA Technologies as its preferred investment in the rapidly evolving electric vertical takeoff and landing (eVTOL) market. The investment firm initiated coverage with a "Buy" rating, highlighting BETA's innovative stepwise certification strategy. This approach is expected to generate early revenue and expedite learning without delaying eVTOL development.
BETA operates a vertically integrated business model, functioning as both an aircraft manufacturer and a parts supplier. This dual role is considered highly attractive within the aviation industry. Furthermore, BETA is collaborating with General Electric on a hybrid defense vehicle and supplies critical components like motors and chargers to competitors, facilitating industry-wide scaling.
While Goldman Sachs sees growing visibility in eVTOL certification timelines due to technological advancements and government focus on reshoring, the competitive landscape remains intense. The firm suggests no single company will dominate, preferring those with strong aftermarket potential, integrated operations, and clear revenue streams to meet future demand.
