The Tesla Of The Skies? How One Company Could Be About To Change The Aviation Industry Forever
Detroit, Michigan
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July 11, 2024 08:35 AM Eastern Daylight Time
By James Blacker, Benzinga
Tesla (NASDAQ: TSLA) is without doubt one of the great success stories of the stock market, having seen its share price soar almost 1500% over the past five years. The company sold some 1.8 million vehicles in 2023, compared to 22,442 vehicles 10 years earlier in 2013. During the same period, its annual revenue grew to over $95 billion. With a market cap of over $800 billion, Tesla is now by far the largest automaker in the U.S. by market cap. By comparison, Toyota (NYSE: TM), the second-largest carmaker, has a market cap of a little over $270 billion.
The success of Tesla can be attributed to numerous factors, not least its groundbreaking innovation, market disruption and commitment to sustainability. Just as Tesla has redefined the automotive industry, an emerging player seeks to do the same for the aviation industry. As the world looks to the skies for the next transportation revolution, New Horizon Aircraft (NASDAQ: HOVR) could be set to be a game changer for aviation with its hybrid electric Vertical Take-Off and Landing (eVTOL) aircraft.
Tesla's Blueprint For Market Dominance
Tesla is best known as a pioneer in the electric car market that continues to innovate with its high-tech EVs and Supercharger network. The company has been a leader in the EV market for years thanks to its focus on cutting-edge tech, including the development of advanced battery systems and autonomous driving capabilities.
Thanks in large part to Tesla, the auto sector has undergone a radical change in the last decade. Global EV sales reached 14 million in 2023, rising 35% from the previous year. This figure is more than six times higher than just five years earlier. In 2023 there were around 40 million EVs on the roads, and industry experts expect this number to continue rising – forecasts suggest that the global EV fleet will reach 250 million by 2030 and 525 million by 2035.
EVs are set to play an important role in helping governments around the world achieve their net zero emissions targets. As such, Tesla’s success can also be attributed to its commitment to sustainability, which is at the core of its mission. The company says its products are designed to replace the planet’s biggest polluters. Last year, Tesla customers avoided releasing over 20 million metric tons of CO2 into the atmosphere. This focus on sustainability has resonated with consumers and propelled Tesla to become one of the most valuable companies in the world.
New Horizon Aircraft: The Tesla Of The Skies?
New Horizon Aircraft is positioning itself to emulate Tesla’s success as a company at the forefront of a new era in aviation, dedicated to revolutionizing air travel through innovative and sustainable tech.
Founded in 2013 by a father-and-son team with extensive flying experience, Horizon Aircraft’s team of elite aerospace engineers is developing a hybrid eVTOL aircraft called the Cavorite X7. This aircraft uses a patented fan-in-wing design that lets it take off and land vertically like a helicopter but reconfigure en route to fly like a traditional aircraft.
Redefining Aviation With Cutting-Edge Technology
Much like Tesla, Horizon is continually innovating and developing new technology for its aircraft design. In contrast to many other eVTOL aircraft, the Cavorite X7 uses a hybrid electric main power system, which means it can recharge its battery array mid-flight and post-flight. Horizon says that this hybrid electric system, coupled with its patented fan-in-wing design, allows the Cavorite X7 to go faster and farther and carry more useful load than its competitors. According to the company, the X7 will have a maximum range of 500 miles, a maximum useful load of 1,500lb and a top speed of 250 mph.
Horizon is also innovating with advanced autonomy and control systems that aim to make flight operations safer and more efficient. The company’s technical innovations will not only allow precise control during takeoff, landing and flight but also pave the way for a fully autonomous eVTOL in the future, pending regulatory acceptance.
In line with its vision, sustainability is a key aspect of Horizon’s design philosophy. The Cavorite X7’s hybrid electric system reduces fuel consumption, meaning it can operate with up to 30% less hydrocarbon emissions than conventional aircraft performing similar operations, according to the company. Furthermore, as battery technology continues to advance, the Cavorite is expected to become fully electric, which will further reduce its environmental impact.
Additionally, Horizon says its aircraft could bring costs down some 30% even compared to a helicopter carrying out a similar regional transport mission and at twice the speed.
Transforming Urban And Regional Mobility
With their small design and ability to take off and land vertically, eVTOL aircraft are ideal for transporting people and goods within urban areas. They are therefore seen as a solution to the global problem of traffic congestion, which leads to lost time, increased fuel consumption and high emissions. A recent study found that road congestion results in up to $200 billion in lost productivity annually. With the growing need for efficient and sustainable mobility solutions, eVTOL aircraft have the potential to transform urban mobility.
With a wing design that allows it to fly farther, Horizon’s Cavorite X7 sets itself apart from other eVTOL aircraft as it is also ideal for regional air mobility (RAM) – short-haul travel connecting regions that are underserved by traditional airline routes. This capability means Horizon could be poised to capitalize on a global RAM market that is expected to grow to $115 billion by 2035.
In addition to passenger travel for the RAM market, Horizon expects the X7’s uses to range from medical evacuation to natural disaster response, emergency surveillance and search and rescue.
Navigating Challenges
As with any disruptive technology, some challenges will need to be overcome before it becomes fully accessible to the wider public. Firstly, regulatory bodies, such as the Federal Aviation Administration (FAA), need to adapt to the rapid advancement of eVTOL technology – new products will require rigorous testing and certification processes before they can be approved. Regulators must also consider factors such as developing rules for safe flight in urban areas and air traffic control.
The final hurdle to overcome for the eVTOL industry will be gaining market acceptance. It will be important to educate the public and stakeholders about the safety and benefits of this new technology in order to build trust. Adoption could come sooner than you think, however, with the FAA saying last year that it expects the first eVTOL to begin commercial operations around late 2024 or early 2025.
A Vision For Tomorrow’s Skies
The potential for a transformative shift in the aviation industry is immense. Just as Tesla reshaped the automotive landscape, Horizon Aircraft has the opportunity to do the same for aviation. The company envisions a future where air travel is more efficient, accessible, sustainable and integrated into our daily lives. Through continuous innovation, New Horizon Aircraft aims to make this vision a reality.
Featured photo by Lars Nissen from Pixabay.
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