Eve Backs eVTOL Prototype Despite Q1 Loss Doubling

Eve Air Mobility, the Brazilian subsidiary of Embraer, announced plans to push forward with the construction of its first full-scale eVTOL prototype in the second half of 2023 despite its Q1 net loss more than doubling. 

The company’s net loss totaled USD$25.8 million in Q1 2023, significantly higher than the USD$10 million reported in the same period last year. However, Eve added that the company is not expecting “meaningful revenues” during the development stage of its electric aircraft.

Eve attributed the growth in net loss to increased research and development (R&D) expenses and the costs borne from Selling, General & Administrative (SG&A). R&D expenses doubled from USD$9.1 million in the first quarter of 2022 to USD$21.5 million in 2023, while SG&A costs surged from USD$1.3 million in 2022 to USD$6.2 million.

Despite heightened losses and costs incurred, the Sao Paulo-based firm is sticking to its timeline of selecting a main equipment supplier in the first half of 2023 and assembling a full-scale prototype of its eVTOL during the second half of the year. The company also plans to conduct flight tests in 2024. 

From an overall perspective, Eve’s total cash consumption for the first quarter of 2023 stood at USD$19.9 million, marking a drastic increase from the USD$1.9 million in the same period last year. 

The eVTOL manufacturer had USD$294.6 million in liquidity at the end of Q1, including cash, cash equivalents, financial investments, and related-party loan receivables. This was slightly lower than the USD$310.6 million announce at the end of Q4 in 2022. Eve also confirmed it did not have any debt on its balance sheet as of Q1 2023. 

Eve’s eVTOL utilizes a lift + cruise configuration and can carry four to six passengers depending on the configuration. The Brazilian firm aims to have its electric aircraft certificated by the National Civil Aviation Agency of Brazil (ANAC) and the U.S. Federal Aviation Administration (FAA) by 2026.

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