Cathie Wood’s Ark Invest Takes Flight with Major EV Air Taxi Stock Acquisitions
EVs have been one of the biggest investing trend in mobility this decade.
First, it was electric cars.
Now, the buzz is all about electric airplanes and it has caught the eye of one the world’s largest investors in EV stocks.
Cathie Wood1 is eyeing air taxis, saying, “We think the air taxi industry is almost here.”
Ark Invest stepped up its game last December, snapping up 323,028 shares of Joby Aviation (JOBY)2, a leader in the race to develop an all-electric air taxi.
This $2 million investment came through Ark’s Autonomous Tech and Robotics fund, boosting its Joby holdings to 2.29 million shares, now worth $14.6 million and making up 1.45% of the fund’s portfolio.
The same ETF is also heavily invested in Archer Aviation (ACHR), with a staggering 7.7 million shares in its possession, a nearly $50 million stake that accounts for 4.8% of the fund.
Major automobile manufacturer Stellantis is also diving into the game, partnering with Archer Aviation to build electric aircraft.
After the announcement in January 2023, Archer’s stock soared from $1.85 to $6.81.
That’s a 268% jump!
And there’s more.
Lithium prices have dropped sharply. This means cheaper battery production for electric aircraft.
It’s a big win for the industry. For investors, this could be the next big thing.
Welcome to “EV 2.0”. The future is now.
This company generated ~$60.5 million in revenue in 20233 and has an exclusive relationship agreement with American general aviation manufacturer, Textron Aviation (NYSE: TXT) and a strategic agreement with Palantir Technologies, a global leader in AI, data analytics and business intelligence.
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So if you missed Tesla in 2010, or even Archer last year…
This could potentially be your shot at redemption.
But before we go further, we’d like to stress something very important!
Pay close attention to new trends BEFORE they take off.
This company we are about to reveal is at the center of $75+ billion dollar global opportunity.4 It’s an American aviation company with three major things going for it:
- It’s in a hot industry
- Generated over $60.5 million in revenue in 2023
- Multi-billion dollar market cap partner relationships
Could Surf Air Mobility Inc. (NYSE:SRFM) be the next stock on Cathie Wood’s radar?
(Read below to find out why)
First off. This is not a brand new startup.
Surf Air Mobility (NYSE:SRFM) owns the largest commuter airline in the US by scheduled departures.
And when it comes to electrified air travel, Surf Air has a first-mover advantage that could put it miles ahead of the competition.
Why?
Instead of developing electric planes from scratch (which could take decades), Surf Air Mobility (NYSE:SRFM) has an agreement with one of the world’s largest general aviation manufacturer Textron Aviation and aviation technology engineering leader AeroTEC to support its plans of swapping out the engines of popular and widely used existing aircraft for hybrid or fully electric powertrains, specifically the Cessna Grand Caravan.
With a thriving customer base, a fast-tracked path to electrification certification and powerhouse partners, Surf Air Mobility (NYSE:SRFM) is positioned to be the first company to commercialize green regional air travel.
But there’s more…
Surf Air is also revolutionizing how regional air travel is managed, thanks to a game-changing agreement with Palantir Technologies, a $65-billion powerhouse known for its groundbreaking work in AI and data analytics.
This is not just another partnership—it’s a monumental collaboration that combines Surf Air’s vision for the future of air travel with Palantir’s unparalleled expertise in artificial intelligence, enterprise data analytics, and business intelligence.
The collaboration between the two companies began in 2021 when Surf Air Mobility Inc. (NYSE:SRFM) recognized the need for a cutting-edge solution to meet the challenges of the regional air mobility market and replace existing tools which are fragmented and outdated.
In a major move set to disrupt the advanced air mobility sector, Surf Air Mobility Inc. (NYSE:SRFM) announced the formation of a new venture, Surf Air Technologies LLC, whose software platform will be powered by Palantir Technologies.5
The two companies have joined forces to create a comprehensive AI-powered platform, “SurfOS,” designed to transform the operations of regional air operators and electrified aircraft manufacturers.
The agreement includes substantial contributions from both companies. Surf Air will bring its proprietary software, intellectual property, and operational data to the table, while Palantir will provide implementation engineering services through its commercial platforms, including Foundry and AIP.
Surf Air Mobility Inc. (NYSE:SRFM) aims to roll out SurfOS across the market, targeting Part 135 regional air operators, an area where existing software tools have been inadequate and fragmented.
By leveraging Palantir’s AI platform, SurfOS is being designed to offer a unified solution that addresses everything from crew scheduling to business intelligence and dynamic pricing.
With Surf Air Mobility’s Southern Airways subsidiary leading the charge as the largest operator by scheduled departures in the US, this new venture entity is poised to set a new industry standard, making Surf Air’s own airline and charter operations the first to benefit from this groundbreaking technology.
On top of that, Palantir now owns 10.7 million shares, representing a 12.1% stake in the company.
The JV will be backed by a targeted $5 million minimum in capital from outside third party investors, with Palantir and Surf Air Mobility leading the funding efforts. This investment will fuel the development and scaling of SurfOS, driving industry innovation.6
That’s not all Surf Air Mobility Inc. (NYSE:SRFM) has been up to… Some other recent wins include:
- Restructuring its capital structure with GEM7
- Growing its global presence by inking electrified powertrain deals in East Africa8 and Brazil9
- Adding more subsidized commuter routes launched in May 202410
But before we jump into all of the details, take a look at some of the top reasons Surf Air Mobility (NYSE:SRFM) is flying high above the rest of its competitors.
5 Reasons
Surf Air Mobility Inc. (NYSE:SRFM) is Leading the Revolution of Regional Air Travel
1
Flying High in a $75+ Billion Market11 by 2035.
2
It’s the largest commuter airline in the US by scheduled departures, flying over 450,000 passengers on ~75,000 flights to 48 destinations in the US in 2022.12
3
Surf Air Mobility Inc. (NYSE:SRFM) generated ~$60.5 million in revenue in 2023
4
Strong commercial relationships with industry leaders across the value chain including Palantir Technology, Textron Aviation, Jetstream Aviation Capital.
5
Seasoned leadership team with past leadership roles at companies including Delta, Bombardier Flexjet, United, Wisk, and Virgin America.
Expansion of Surf Air’s Commuter Flight Network
As Surf Air Mobility charges ahead in electrifying air travel, it’s also relentlessly expanding its commuter flight network to enhance convenience for travelers across America.
Let’s dive into Surf Air Mobility’s (NYSE:SRFM) multi-pronged strategy to transform the skies:
- Acquisition of Southern Airlines jumpstarted operations, deploying a fleet of ~50 aircraft on a nationwide network of flights.
- Agreement with Textron Aviation for up to 150 Cessna Grand Caravan EX models signals a commitment to electrification.13
- Strategic alliance with AeroTEC accelerates development and certification of commercial electric aircraft technology.
Surf Air Mobility (NYSE:SRFM) has begun making waves in East Africa and Brazil, sealing strategic supply deals with air operators to electrify their fleets.
In a groundbreaking move, Surf Air Mobility recently announced partnerships with some of Kenya’s premier safari air services, Safarilink,Yellow Wings Air, and Z.Boskovic to electrify their fleets.
By outfitting existing Cessna Grand Caravan aircraft fleets with Surf Air Mobility’s (NYSE:SRFM) cutting-edge electrified powertrain technology, they’re poised to revolutionize air travel in Kenya and beyond.
This initiative builds upon Surf Air Mobility’s earlier collaboration with Azul, Brazil’s largest airline, to electrify up to 27 of its Cessna Caravans.
With targets of reducing direct operating costs by up to 50% and eliminating 100% of direct carbon emissions on fully electric versions of the powertrain, Surf Air Mobility (NYSE:SRFM) plans to propel the industry towards a greener, more efficient future in regional air travel.
How Does Surf Air Distance Themselves From Its Competitors?
As the electric aviation space heats up, Surf Air Mobility (NYSE:SRFM) could emerge as a standout player, offering distinct advantages that resonate with both consumers and investors alike.
Unlike Joby Aviation, BETA Technologies, Archer Aviation, and Lilium N.V.—all of which are pre-revenue from passenger operations—Surf Air Mobility stands out with a solid revenue stream of $60.5 million in 2023.14
What sets Surf Air Mobility Inc. (NYSE:SRFM) apart even further is its approach to developing proprietary electric technology, a step ahead of competitors like Blade Air Mobility, which lacks its own electrified IP.
When you compare Surf Air Mobility’s market value to its peers, it doesn’t seem to add up.
Despite Surf Air’s (NYSE:SRFM) revenue, access to capital and cutting-edge technology in development, its market value is hovering just over $30 million.
The best part? These companies may seem like rivals on the surface, but they could ultimately become valuable partners for Surf Air Mobility (NYSE:SRFM), similar to how Air Canada partners with United on select flights.
It’s also like how Uber focuses on delivering a seamless transportation experience regardless of the vehicle, Surf Air Mobility‘s tech-enabled operating software and leasing services could complement the company’s efforts.
What’s not to like about this company?
Our Story: Surf Air Mobility from Surf Air on Vimeo.
Surf Air Mobility Aims to Enable the New Regional Mass Transit Air Travel Solution
It’s 2024 – shouldn’t air travel be as simple and convenient as tapping a button on your smartphone?
Just like how Uber made hailing a ride seamless, Surf Air Mobility Inc. (NYSE:SRFM) aims to make catching a short flight just as easy and convenient.
Imagine skipping the long lines and busy hubs and flying directly between smaller local airports closer to your home and desired destination.
It’s what the industry calls Regional Air Mobility (RAM).
“Regional Air Mobility (RAM) will fundamentally change how we travel, bringing the convenience, speed, and safety of air travel to all Americans, irrespective of their distance from a major hub.”18 – NASA
McKinsey & Company predicted that “Innovative propulsion… could introduce a new era of frequent, convenient passenger flights on smaller regional aircraft.”19
The financial horizon is even brighter. By 2035, the global market for these regional flights could be valued between $75 billion and $115 billion, translating to a passenger flow of 300 to 700 million people annually.20
But, what truly makes Surf Air (NYSE:SRFM) the ‘Uber of Commercial Air Travel‘ is its approach to streamlining and enhancing the user experience.
The Surf Air App reimagines how we access air travel, making existing aircraft and pilots more accessible to the everyday traveler.
Soaring High With Star-Studded Partnerships
In the fast-paced world of regional air mobility, Surf Air Mobility Inc. (NYSE:SRFM) has assembled a powerhouse team of industry titans, positioning itself for unparalleled success.
- Textron Aviation – Aircraft Manufacturing
-
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- Exclusive relationship supports Surf Air Mobility’s development of electrified Cessna Grand Caravan EX aircraft.
- Exclusive relationship supports Surf Air Mobility’s development of electrified Cessna Grand Caravan EX aircraft.
-
- Palantir Technologies – Software Development
-
-
- Enhances operational efficiency with Big Data analytics solutions
- Enhances operational efficiency with Big Data analytics solutions
-
- AeroTEC – Engineering & Certification
-
-
- Certifies Surf Air’s electrified powertrain technology, ensuring reliability
- Certifies Surf Air’s electrified powertrain technology, ensuring reliability
-
- Jetstream Aviation – Capital Financing
-
- Provides flexible capital
- SkyWest Airlines – Pilot Recruitment
- Ensures a competitive advantage in pilot recruitment
- Ensures a competitive advantage in pilot recruitment
Surf Air Mobility’s Multifaceted Revenue Streams
Surf Air Mobility Inc. (NYSE:SRFM) is revamping travel. They’re not just changing the game; they’re rewriting the playbook with a diverse revenue mix.
Scheduled flights linked 48 US cities21 in 2022, making travel a breeze. Whether it’s a single seat or a private charter, Surf Air is the go-to for fast, convenient journeys.
Their role in essential air services (EAS) adds consistent, subsidized revenue.
A groundbreaking partnership with Purdue University: subsidized flights between Purdue and Chicago O’Hare. Launched in early Q2 2024, these new flights will transform travel for Purdue’s community.22
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In May 2024, Surf Air (NYSE:SRFM) launched another subsidized route connecting Williamsport with Washington Dulles, injecting new life into regional travel with ten weekly flights.23
Beyond passenger services, Surf Air intends for its Aircraft-as-a-Service (ACaaS) program they’re developing to be a revolution in the skies. This all-in-one solution for leasing, maintenance, and optimization for Part 135 regional air operators is a revenue booster.
Electric planes and ACaaS24 are just the beginning. For Surf Air, the sky’s not a limit—it’s an opportunity.
Stellar Leadership Team
Surf Air Mobility’s (NYSE:SRFM) leadership brings a wealth of experience from aviation, media, and technology, showcasing a track record of success.
RECAP: 6 Key Reasons You Don’t Want to Sleep On Surf Air Mobility Inc. (NYSE:SRFM)
1
Pioneering Green Travel: Surf Air Mobility targets the forefront of sustainable air travel with a focus on electric airplanes, aiming to make short-haul flights more affordable and better for the environment..
2
Huge Market Potential: The regional air mobility sector has a projected global market value of $75-115 billion by 2035.
3
Top RAM Player: As the leading commuter airline in the US, Surf Air Mobility flew 450,000 passengers to 48 destinations in 2022 alone.
4
Diverse Revenue Channels: With ~$60.5M in revenue in 2023, Surf Air and its other air travel brands (Southern Airways and Mokulele Airlines) have multiple revenue sources, from scheduled flights to government contracts and off-fleet charter platform.
5
Powerful Partnerships: Strong ties with industry giants like Palantir Technology, Textron Aviation, and Jetstream Aviation Capital.
6
Expert Leadership: Surf Air’s team brings vast experience from global aviation and transportation leaders, including Delta, United, and Virgin America.
Demand for short haul flights is set to soar. And who’s ready to meet this surge?
Surf Air Mobility Inc. (NYSE:SRFM).
They’re not just in the business of flying; they’re in the business of revolutionizing air travel with electrification.
Consider this: the chance to catch the next Tesla-like wave could be right in front of you. Start your due diligence and make sure Surf Air Mobility Inc. (NYSE:SRFM) is on your watchlist today before investors like Cathie Wood catch on.
Opportunities like this don’t come often.
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Get investment opportunities before the rest of the market in real-time.
Get this company's corporate presentation now. Subscribe to download!
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