TLDR
- BETA Technologies received a “Buy” rating from Goldman Sachs, making it the investment bank’s preferred stock in the electric aircraft industry
- The company announced a supply agreement with Eve Air Mobility worth up to $1 billion over 10 years to provide motors for 2,800 eVTOL aircraft
- BETA stock jumped 8% following the motor contract news, a transformational deal considering the company’s 2024 revenue was approximately $15 million
- The electric aircraft maker went public in November, raising over $1 billion at a $6 billion valuation with a vertically integrated business model
- Wall Street analysts forecast revenue climbing from $30 million in 2025 to $2.8 billion by 2029, with most analysts rating shares “Strong Buy”
Goldman Sachs made waves in the electric aircraft sector this week. The investment bank initiated coverage on BETA Technologies with a “Buy” rating and crowned it the top stock in the space.
The firm took a more cautious view on other players. Goldman assigned “Neutral” ratings to Archer Aviation and Eve Holding while slapping Joby Aviation with a “Sell” rating.
BETA went public last month at $34 per share. The company pulled in over $1 billion through its November IPO with Goldman Sachs and Morgan Stanley leading the offering.
Goldman analyst Anthony Valentini praised BETA’s certification strategy. The stepwise approach generates revenue earlier while accelerating the learning curve without pushing back the eVTOL timeline.
The company’s business model sets it apart from rivals. BETA manufactures aircraft while also supplying parts to the industry, a dual revenue stream Goldman considers the most attractive setup in aviation.
BETA teamed up with General Electric to build hybrid vehicles for defense applications. The company also supplies motors and chargers to competitors, helping it achieve scale faster.
Major Motor Deal Drives Stock Higher
BETA dropped big news on Tuesday morning. The company signed a supply contract with Eve Air Mobility to provide pusher motors for electric vertical takeoff and landing air taxis.
Eve currently has orders for 2,800 eVTOLs in its backlog. BETA said the deal creates a potential 10-year opportunity worth up to $1 billion.
Shares jumped more than 8% on the announcement. The contract could reshape the company’s financials given BETA generated barely $15 million in revenue during 2024.
Eve put BETA’s motors through testing in a prototype aircraft during an evaluation phase. The test craft should take its first flight by the end of 2025 or in early 2026.
CEO Kyle Clark pointed to the motors’ track record. He highlighted thousands of hours of demanding real-world operations proving high performance and reliability.
Technology Development and Infrastructure Rollout
BETA is pushing forward with autonomous flight capabilities through Near Earth Autonomy. The partnership has logged over 1,000 hours of uncrewed flights on subscale aircraft, demonstrating ranges beyond 158 nautical miles per charge.
Integrated autonomous system testing starts in the first half of 2026. The technology will enable aircraft to fly faster, haul heavier loads, and cover longer distances without pilots onboard.
Current piloted BETA aircraft handle up to 1,240 pounds or five passengers. Removing the pilot nearly doubles the payload capacity.
The company locked down a contract with Abu Dhabi Airports for charging infrastructure deployment. BETA will install its Charge Cube and Battery Thermal Management System at Al Bateen Executive Airport and Zayed International Airport.
The installations support the region’s first eVTOL operations slated for 2026. BETA now operates over 50 charging locations across the United States and Canada.
Analysts tracking the stock see revenue jumping from $30 million this year to $2.8 billion in 2029. Projected free cash outflow will exceed $1.4 billion through 2028, meaning BETA will likely need more capital.
Three of four analysts covering BETA rate it “Strong Buy” with one analyst at “Hold.”
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
