Vertical Aerospace CEO Defends Valo eVTOL Progress as Going-Concern Warning and Share Slide Raise Funding Questions
Why It MattersThe squeeze on Vertical's funding and share price shows how thinly capitalised eVTOL developers can stall well before certification, pushing the sector toward partnerships and strategic deals.
Vertical Aerospace CEO Stuart Simpson said the stock market is overlooking the company's technical progress, even as financial difficulties raise questions about whether it can sustain the long road to certification of its Valo electric vertical-takeoff-and-landing (eVTOL) air taxi. In an interview with Aviation Week, Simpson pointed to piloted transition flights at July's Farnborough International Airshow, an approaching critical design review (CDR), and the appointment of former Airbus executive Fabrice Bregier as board chair as evidence of momentum.
In an August interim financial filing, Vertical warned of material uncertainty over its ability to continue as a going concern. Without additional capital, the company expects existing liquidity and financing facilities to support operations through the third quarter of 2027, well short of a planned 2029 certification target. In September, the company said it had retained Jefferies to explore "strategic alternatives," including potential partnerships.
On Oct. 2, Vertical disclosed that it had received a warning from the New York Stock Exchange after its shares fell below the $1-per-share minimum average closing price requirement. The stock has since continued to fall, dropping below 50 cents for the first time on Oct. 13. Simpson said Vertical has financing commitments and could access as much as it wants under its committed equity facilities, but acknowledged the company is reluctant to draw heavily on them at the currently depressed share price.
