Vertical Aerospace Stock Tumbles 30%, And There Is More Downside

Summary

  • Vertical Aerospace faces severe dilution risk, with recent capital raises failing to cover ongoing cash burn and a delayed certification timeline now pushed to 2028.
  • The $60 million public offering only funds operations through mid-2026, while at least $317–$380 million more will be needed before break-even in 2030.
  • Future capital raises could dilute shareholders by 43–52%, especially if share prices remain depressed or further discounted offerings are required.
  • Given persistent cash needs, timeline slippage, and inevitable dilution, I maintain a sell rating on EVTL shares.
  • Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More »
Overhead View Of An Electric Flying Vehicle

AzmanJaka

I covered Vertical Aerospace (NYSE:EVTL) in September 2024 with a sell rating as the company was facing significant dilution risk. While the stock did climb to north of $13, that dilution risk has proven to be detrimental to the stock

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This article was written by

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Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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