Tesla and the dream of producing electric airplanes are close

“In our view, it is highly unlikely that Tesla will forgo providing products and services to the eVTOL (electrical vertical take-off/landing aircraft) market. The additional networking and transferable skills available are too potential to be left out,” Jonas said in a new study.

Morgan Stanley’s expert believes that the “Tesla aviation” segment will be a logical development based on the company’s electric vehicle production capacity.

The eVTOL vehicles are not like helicopters, but it can become a huge industry.

Morgan Stanley estimates that by 2030, the total available market (TAM) of the eVTOL industry in the US could reach $12 billion, driven by demand for fuel-free short-haul vehicles.

And by 2050, according to the bank’s projections, the eVTOL market could be worth $9 trillion as governments and companies seek to reduce traffic congestion through eco-friendly solutions.

It can be said that this industry has begun to develop. The main players in this sector are including Joby Aviation (an airline backed by Reid Hoffman, founder of LinkedIn), Archer (backed in part by Oscar Munoz, former head of United Airlines) and Wisk (public company). company just received $450 million in funding from Boeing).

Tesla and the dream of producing electric aircraft are close - Photo 1.

Tesla’s boss has hinted at the possibility of producing electric vertical take-off and landing aircraft, once the company’s battery technology meets the technical requirements, which are calculated to be 400-watt hours per hour. kilogram and ideally 500-watt hours per kilogram. Accordingly, the company plans to produce batteries that can increase mileage by more than 54% compared to electric vehicles and reduce costs by 56% per kilowatt-hour.

“There are a number of limited production batteries that achieve over 400-watt hours per kilogram, and I think this level is suitable for mid-range aircraft. Our battery technology will come close to this in the near future,” Elon Musk said in an interview in 2020.

Jonas thinks eVTOL is just one of the areas Tesla will enter over the next decade. Another promising venture could be a combination of Tesla’s automation division with other companies run by Elon Musk, such as The Boring Company and SpaceX.

“Tesla’s next development chapter will be mass industrialization, a network of rudders and ‘connected points’ between adjacent pre-existing markets,” the expert said.

Accordingly, Tesla’s stock is classified in the Overweight category (recommended to buy) with a target price of USD 1,300. As of March 21, its shares are trading around the $900 mark.

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