*

Prototype to fly by end of 2024 or early 2025, says CEO

Johann

Bordais

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Eve aims for certification by 2026, applied to Brazil's

civil

aviation regulator in 2022

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New $94-million investment extends cash needs coverage to

2027

By Gabriel Araujo

GAVIAO PEIXOTO, Brazil, July 21 (Reuters) - Electric

aircraft maker Eve has showcased for the first time the

full-scale prototype of its "flying taxi," achieving a milestone

as the company aims to obtain certification and enter service in

2026.

Eve, controlled by Embraer ( ERJ ), rolled out its

electric vertical take-off and landing (eVTOL) aircraft

prototype at an event with investors and clients at the

Brazilian planemaker's Gaviao Peixoto plant on July 3.

The company is one of a bevy of startups worldwide

developing battery-powered aircraft that can take off and land

vertically to ferry travelers on short city trips, allowing them

to beat traffic.

Eve expects to fly the prototype by the end of this year or

early 2025, CEO Johann Bordais told Reuters at the event, after

starting ground tests in July.

The first non-conforming prototype is equipped with electric

engines but does not have a cabin or pilot. The final aircraft

will seat four passengers and a pilot.

"This prototype is completely remote so we can test

aerodynamics, start flying and then make what we call transition

flight from vertical to horizontal flight," Bordais said.

He said having the full-scale prototype ready for tests is

another step toward certifying the aircraft, which Eve expects

to achieve by 2026. Eve applied for certification in 2022 to

Brazil's civil aviation regulator.

Eve will have five conforming prototypes ready next year and

a pre-series eVTOL by 2026 as part of the certification process,

Bordais said.

"This is a foundation stone so we can learn and keep going,"

he added. "Challenges exist. It's not something trivial. We are

at the limits of technology and aeronautics, and this moment of

testing is fundamental."

Power grids around the world are not ready for so-called

flying cars, from the electricity supply to ports for vertical

take-off and landing.

NEW INVESTMENT

Eve debuted on the New York Stock Exchange in 2022, raising

nearly $400 million to develop its eVTOL, a project initially

slated to cost $540 million. The company later secured a

$92-million loan from Brazilian state development bank BNDES.

Investors include United Airlines, BAE Systems

, Thales, Rolls-Royce, Acciona

and Bradesco BBI.

This month, the firm announced a fresh round of fundraising

totaling $94 million, with investments from Embraer ( ERJ ) and Japan's

Nidec ( NNDNF ), one of its key suppliers.

"This gives us comfort that we will be able to keep developing

this product until 2027," Bordais said, which would meet Eve's

cash needs through the certification process. "We had cash for

2025, now we are going until 2027."

Eve has amassed nearly 3,000 potential orders ahead of

production, which it hopes to eventually convert into firm

orders. Interested clients include U.S. carrier United, charter

firm Global Crossing and aircraft lessor Azorra.

"We do not need to convert these (letters of intent) right

now, especially with the new investment," Bordais said.