Cathie Wood’s Ark Invest Takes Flight with Major EV Air Taxi Stock Acquisitions

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!

image12 1 Cathie Wood's Ark Invest Takes Flight with Major EV Air Taxi Stock Acquisitions

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 ~$100 million in revenue in 2022 and has signed an exclusive relationship agreement with American general aviation manufacturer, Textron Aviation (NYSE: TXT).

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.³ It’s an American aviation company with three major things going for it:

It’s in a hot industry
Generated over $100 million in revenue
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)

Breaking News

Surf Air Mobility Enters Agreement to Supply Electric Powertrains to Tanzanian Cessna Caravan Operator Auric Air

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.

Some recent big wins for Surf Air Mobility (NYSE:SRFM) include:

Restructuring its capital structure with GEM⁴
Growing its global presence by inking electrified powertrain deals in East Africa⁵ and Brazil⁶
Adding more subsidized commuter routes with planned launches in the future⁷

Surf Air Mobility counts Palantir Technologies as one of its backers. On February 15, 2024, the big data analytics leader filed a Schedule 13G, reporting a 7.1% stake in Surf Air Mobility for a total amount of 5,205,492 shares.

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

Flying High in a $75+ Billion Market⁸ by 2035.

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 2022.⁹

Generated ~$100 Million in revenue in 2022.

Strong commercial relationships with industry leaders across the value chain including Palantir Technology, Textron Aviation, Jetstream Aviation Capital.

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.¹⁰
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 over $101 million.¹¹

What sets Surf Air Mobility 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 under $85 million.

1 Cathie Wood's Ark Invest Takes Flight with Major EV Air Taxi Stock Acquisitions

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.”¹² – NASA

McKinsey & Company predicted that “Innovative propulsion… could introduce a new era of frequent, convenient passenger flights on smaller regional aircraft.”¹³

The financial horizon is even brighter. By 2035, the global market for these image3 1 Cathie Wood's Ark Invest Takes Flight with Major EV Air Taxi Stock Acquisitions regional flights could be valued between $75 billion and $115 billion, translating to a passenger flow of 300 to 700 million people annually.¹⁴

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

- - 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

AeroTEC – Engineering & Certification

- - 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

2 Cathie Wood's Ark Invest Takes Flight with Major EV Air Taxi Stock Acquisitions

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 cities¹⁵ 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. Set for early Q2 2024, this will transform travel for Purdue’s community.

Come May 2024, Surf Air (NYSE:SRFM) plans to launch another subsidized route connecting Williamsport with Washington Dulles, injecting new life into regional travel with ten weekly flights.

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 ACaaS¹⁶ are just the beginning. For Surf Air, the sky’s not a limit—it’s an opportunity.

image5 Cathie Wood's Ark Invest Takes Flight with Major EV Air Taxi Stock Acquisitions

Press Releases

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.

Stan Little CEO

Since 2013, Little has been the founder, Chairman, and CEO of Southern Airways Express and Mokulele Airlines. A practicing attorney since 2002, he is also Senior Partner Emeritus at Little & Barton, PLLC. His extensive business and industry experience qualifies him to serve as SAM’s CEO and board member.

Sudhin Shahani Co-Founder

Shahani is a seasoned entrepreneur and venture capital investor with a diverse portfolio in aviation, media, technology, and education. He is the co-founder of Surf Air Mobility, where he has been steering the company’s vision, fundraising, and M&A activities since 2014. Under his leadership, Surf Air has raised over $400M and pioneered sustainable flight technologies. Before this, he was an Entrepreneur in Residence at Anthem Ventures, managing over $450M and serving on various boards. Shahani also co-founded Musicane and RTG Animate.

Fred Reid Head of Global Business Development

A global aviation leader, Fred Reid has built products and services enjoyed by consumers around the world. As the founding CEO of Virgin America, America’s top airline for nearly 10 years, Fred helped create the “next generation airline”. Fred has also served as President of Lufthansa, Delta, Kitty Hawk, and Flexjet, and served as the Global Head of Transportation at Airbnb.

Carl Albert Chairman

Albert boasts extensive experience in aviation, formerly serving as principal investor and Chairman & CEO of Wings West Airlines, acquired by AMR, and later of Fairchild Aircraft for a decade. Under his leadership, Fairchild acquired German manufacturer Dornier Luftfahrt, both companies producing regional aircraft and Dornier supplying Airbus with key components for multiple models. Albert also oversaw Merlin Express, a cargo service for UPS and FedEX. He has managed engineering programs to obtain various aircraft certifications from regulatory bodies like FAA and EASA.

Oliver Reeves Chief Financial Officer

Oliver Reeves is a seasoned financial executive with a proven track record at both the strategic and operational levels. He will lead Surf Air Mobility’s financial and capital markets strategies, leveraging nearly two decades of experience in the investment management, enterprise technology, and insurance industries. Prior roles include serving as Chief Strategy Officer at Xinuos, Inc. since 2019.

RECAP: 6 Key Reasons You Don’t Want to Sleep On Surf Air Mobility Inc. (NYSE:SRFM)

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..

Huge Market Potential: The regional air mobility sector has a projected global market value of $75-115 billion by 2035.

Top RAM Player: As the leading commuter airline in the US, Surf Air Mobility flew 450,000 passengers to 48 destinations in 2022 alone.

Diverse Revenue Channels: With ~$100M in revenue in 2022, 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.

Powerful Partnerships: Strong ties with industry giants like Palantir Technology, Textron Aviation, and Jetstream Aviation Capital.

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.

Disclaimer

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footnotes:
[1] https://www.investors.com/news/this-aerospace-ev-maker-turned-5000-into-17100-this-year-cathie-wood-is-hoarding-shares/ [2] https://www.thestreet.com/investing/stocks/cathie-wood-jim-cramer-technology-stocks-investing-joby-aviation-sell [3] https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/short-haul-flying-redefined-the-promise-of-regional-air-mobility [4] https://cdn.surfair.com/website/Surf-Air-Mobility-Enters-into-Binding-Terms-for-a-35.2-Million-Mandatory-Convertible-Debenture-with-GEM-Global-Yield-LLC.pdf [5] https://investors.surfair.com/news/news-details/2024/Surf-Air-Mobility-Enters-Agreements-to-Supply-Electric-Powertrains-to-Major-Kenyan-Cessna-Caravan-Operators-Safarilink-and-Yellow-Wings/default.aspx [6] https://cdn.surfair.com/website/Surf-Air-Mobility-and-Azul-Conecta-Enter-Agreement-to-Incorporate-Electric-Powertrains-into-Azuls-Cessna-Caravan-Fleet.pdf [7] https://cdn.surfair.com/website/Surf-Air-Mobility-And-Purdue-University-Enter-Agreement-for-Privately-Subsidized-Commuter-Air-Service-Between-West-Lafayette-Purdue-University-Airport-and-Chicago-OHare-Airport.pdf [8] https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/short-haul-flying-redefined-the-promise-of-regional-air-mobility [9] https://www.businesswire.com/news/home/20230801357482/en/Surf-Air-Mobility-Announces-the-Successful-Completion-of-its-Acquisition-of-Southern-Airways [10] https://investors.surfair.com/news/news-details/2023/Surf-Air-Mobility-Confirms-Order-for-100-Aircraft-and-Exclusive-Relationship-with-Textron-Aviation-to-Support-Surf-Air-Mobilitys-Development-of-an-Electrified-Cessna-Grand-Caravan-EX/default.aspx [11] https://www.businesswire.com/news/home/20230801357482/en/Surf-Air-Mobility-Announces-the-Successful-Completion-of-its-Acquisition-of-Southern-Airways [12] https://ntrs.nasa.gov/citations/20210014033 [13] https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/short-haul-flying-redefined-the-promise-of-regional-air-mobility [14] https://www.mckinsey.com/industries/aerospace-and-defense/our-insights/short-haul-flying-redefined-the-promise-of-regional-air-mobility [15] https://www.surfair.com/memberships/ [16] https://s202.q4cdn.com/166167538/files/doc_presentations/2023/Sep/21/investor-presentation-september-2023.pdf

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management's expectations regarding Surf Air Mobility Inc.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Surf Air Mobility Inc.’s industry; (b) market opportunity; (c) Surf Air Mobility Inc.’s business plans and strategies; (d) services that Surf Air Mobility Inc. intends to offer; (e) Surf Air Mobility Inc.’s milestone projections and targets; (f) Surf Air Mobility Inc.’s expectations regarding receipt of approval for regulatory applications; (g) Surf Air Mobility Inc.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Surf Air Mobility Inc.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Surf Air Mobility Inc.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Surf Air Mobility Inc.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) the accuracy of budgeted costs and expenditures; (e) Surf Air Mobility Inc.’s ability to attract and retain skilled personnel; (f) political and regulatory stability; (g) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (h) changes in applicable legislation; (i) stability in financial and capital markets; and (j) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Surf Air Mobility Inc. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Surf Air Mobility Inc.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Surf Air Mobility Inc.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Surf Air Mobility Inc.’s business operations (e) Surf Air Mobility Inc. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, Surf Air Mobility Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Surf Air Mobility Inc. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Surf Air Mobility Inc. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Surf Air Mobility Inc. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Surf Air Mobility Inc. or such entities and are not necessarily indicative of future performance of Surf Air Mobility Inc. or such entities.

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