Air-taxi maker Vertical completes phase one testing of prototype
Adds shares in paragraph 1, background in paragraphs 6-7
By Abhijith Ganapavaram
Sept 12 (Reuters) -UK-based Vertical Aerospace M00.F has completed the first phase of piloted testing of a prototype of its air-taxi, VX4, it said on Thursday, sending the company's shares up 3.9% in U.S. premarket trading.
The VX4 has 1,500 pre-orders worth $6 billion from companies including Virgin Atlantic, American Airlines and Japan Airlines.
The phase one testing included multiple piloted tethered flights and ground runs. It completed 70 individual test points to validate its safety in the real-world flight scenarios.
The company is now preparing for phase two testing, which will involve taking-off and landing vertically, as well as low-speed flight maneuvers with lift generated by the propellers.
Founded in 2016, Vertical is developing VX4 as a piloted, four-passenger electric vertical take-off and landing (eVTOL) aircraft.
The company is among a few eVTOL makers looking to upend urban travel by offering rides. But the industry needs to tackle regulatory hurdles and overcome battery limitations. They also have to convince the public that their aircraft are safe.
At the same time, some eVTOL makers need to raise money to continue testing and set up manufacturing facilities.
Vertical founder, Stephen Fitzpatrick, missed a previously agreed deadline to inject a portion of cash he had promised, Bloomberg reported earlier this month, adding that without the funds, Vertical risks running out of cash by March 2025.
"Vertical remains in ongoing discussions with Stephen. Stephen remains fully supportive of the company," it said in a statement.
In the first half, Vertical brought in funds, including additional cash from Rolls-Royce, taking its cash reserves to $84 million as of June 30, the company said.
Reporting by Anshuman Tripathy and Abhijith Ganapavaram in Bengaluru; Editing by Shreya Biswas and Leroy Leo
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