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Eve plans fundraising for flying taxi certification by

2026

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Eve's eVTOL orders include clients from Brazil, US, India,

France

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Eve hopes to fly first full-scale prototype by year-end

By Gabriel Araujo

SAO JOSE DOS CAMPOS, Brazil, June 10 (Reuters) -

E lectric aircraft maker Eve expects to raise funds as

early as next month to finance operations through the

certification of its flying taxi in 2026, Chief Executive Johann

Bordais told Reuters.

Eve, which is majority owned by Brazilian planemaker Embraer ( ERJ )

, has enough cash and borrowing facilities to fund

operations through 2025, but the company forecasts certification

and entry into service in 2026.

Eve is one of numerous startups worldwide developing

battery-powered aircraft that can take off and land vertically

to ferry travelers on short city trips. Its orders come from

clients in countries such as Brazil, the United States, India

and France.

Among companies to have signed letters of intention to

purchase Eve's eVTOL are U.S. carrier United Airlines,

charter firms Global Crossing and Air X, as well as

aircraft lessor Azorra.

Bordais did not say how much Eve wants to raise or what form

the fundraising may take.

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

raising around $400 million to develop and produce its eVTOL

aircraft, a project initially slated to cost $540 million.

It later secured an additional 490 million-real ($92

million) facility from Brazilian state development bank BNDES.

By the end of the first quarter this year, Eve's total liquidity

stood at $280 million.

"We are doing well in terms of cash," said Bordais, who took

over the firm in September. "Our goal, our second round of

fundraising, is to guarantee it through certification."

Bordais said eVTOL's development is on schedule. The company

recently released images of its first full-scale prototype,

which it hopes to fly without a crew by year-end.

Ground tests for the prototype are expected to begin in

July, he added, following successful wind-tunnel testing last

year.

CERTIFICATION GOAL

Eve's most pressing need is getting the aircraft certified.

It applied in 2022 to Brazil's civil aviation regulator and

expects that domestic validation to be followed by approval from

the U.S. Federal Aviation Administration.

Eve has not delayed its 2026 outlook for certification since

its initial public offering, which analysts at Jefferies last

week said was a rarity in the sector, noting the firm is

financially strong.

Eve has amassed nearly 3,000 orders and chosen most of its

component suppliers ahead of production, with 90% of its supply

chain budget in place.

"But it all starts with certification," Bordais said.

The company's first factory will be in Taubate, Brazil,

capitalizing on proximity to major railways and roads, and to

Embraer ( ERJ ), whose headquarters are in neighboring Sao Jose dos

Campos.

Bordais said the Taubate plant is expected to build up to

120 eVTOLs per year in its first phase and eventually reach

annual capacity of 480 aircraft.

A potential new factory abroad is possible but not a

priority, he said, adding the U.S. could be an option.

"That's not fully decided. Let's start with this factory (in

Taubate), produce and deliver."

($1 = 5.3528 reais)