Electric plane maker dubbed ‘young Tesla’ wins over analysts

Wall Street is bullish on Beta Technologies Inc., calling the electric-powered plane maker an early leader in the regional aircraft industry. Most of the eight analysts who have initiated coverage on the South Burlington, Vt.-based company as of Dec. 1 have a buy-equivalent rating on shares, according to data compiled by Bloomberg. The wave of approval comes a month after Beta’s public-market debut, in which it raised $1.02 billion. Beta is “akin to a young Tesla, but with a more attractive end market of aerospace, which has higher barriers to entry than autos,” said Morgan Stanley analysts in a note. The company, which develops both electric conventional takeoff and landing (eCTOL) aircraft and electric vertical takeoff and landing (eVTOL) models, is ahead of its peers as it gains traction across cargo, medical transport, passenger mobility and defense markets, according to analysts. Investors, however, remain skeptical. Despite having an average twelve-month price target of $37.88, which implies a 43% upside from Nov. 28’s close, shares are down 22% from their initial public offering price, data compiled by Bloomberg show. [caption id="attachment_57293420" align="aligncenter" width="1200"] (Courtesy/Bloomberg)[/caption] To Jefferies’ Sheila Kahyaoglu, who has the only hold rating on Beta, the weakness in its stock price can be attributed to broader declines in small caps and aerospace shares. “We continue to see an upside and think that Beta will be a winner in the space,” Kahyaoglu said. Electric aviation Beta’s positive reception on Wall Street underscores growing investor conviction that electric aviation could be one of the most significant developments in short-haul transportation. Needham, which estimates a $1 trillion total addressable market for electric regional mobility, argues Beta is positioned to capture early market share as the industry shifts toward low-emission short-haul aviation. Read more about Beta Technologies: E-Smart Logistics signs up for 20 Beta Alias Beta completes first Alia demo in Vancouver Beta draws IPO order rush as electric aircraft’s moment arrives Air New Zealand begins test flights with electric Beta Alia Ryan Air commits to Beta Alia CTOL Beta’s approach to first certify an eCTOL, “and to commercialize via cargo and medical as its primary use cases (before expanding to passenger flights) provides a faster and better-defined route to” FAA certification, according to Cantor Fitzgerald’s Andres Sheppard, who predicts the firm will get certification between the end of 2026 and 2027, “creating a significant first-mover advantage.” “Furthermore, Beta is already generating revenue (unlike most peers in the space),” Sheppard wrote in a note. Consolidated design process Beta is streamlining its manufacturing practice by consolidating motors, batteries, software, charging hardware and high-voltage distribution into a single design process, according to Citigroup Inc. analysts led by John Godyn. While more capital-intensive in early years, Citi expects this approach to “improve Beta’s return on R&D dollars” and “reduce reliance on suppliers.” “We believe that the company has, in many ways, been engineered to maximize profitability as its technology is certified and popularized in the coming decades,” Citi said in a note. Cargo Facts LATAM 2026, the essential event for stakeholders in Latin America, will take place Feb. 10-12 at the Marquis Reforma in Mexico City. Learn more and register by Dec. 26 to take advantage of early-bird pricing. Cargo Facts Asia 2026, the indispensable event for Asia-Pacific stakeholders, will take place March 23-25 at the W Shanghai. Learn more and register by Feb. 6 to take advantage of early-bird pricing. The inaugural Cargo Facts Routes and Airport Conference will take place April 27-28 at the Marriott Al Forsan Abu Dhabi. Learn more and register by March 13 to take advantage of early-bird pricing.

Electric plane maker dubbed ‘young Tesla’ wins over analysts

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