Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money

77% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

  • Updates
  • disruptive innovation

Will Boeing's Air Taxi Investment boost its share price?

Amid all the uncertainty and pandemonium in the market, Boeing [BA] appears exempt, instead focusing on its own little venture to keep the company ticking forward.

This article was originally written by MyWallSt. Read more insights from the MyWallSt team here. 

With automakers jumping on the electric vehicle bandwagon, Boeing’s going after a market of its own — autonomous, all-electric, flying taxis. 

Wait, autonomous taxis?

You heard that right. The company behind Boeing’s $450 million investment, Wisk, argues that one of the biggest issues with commercial air travel is pilot error. So how do they solve it? By removing pilots entirely.

Don’t worry though, if your flying taxi breaks down at some stage, the company’s got a backup parachute to make sure you land as softly as a feather. That’s the plan, at least.

You might think that this will just be a gimmick for the ultra-wealthy — and it may be at first. But according to Wisk: “Sitting in traffic will be a thing of the past.” Of course, that’s a tall order and it’s not quite ready to lift off just yet, but the company is making tracks.

Wisk is currently partnered with Air New Zealand, which has allowed it to get more than 1,500 test flights under its belt, and Boeing’s follow-up investment now has the business setting its sights on becoming the first certified air taxi company in the U.S., targeting a 2028 timeline.

$818million

Air taxi market size at present

 

Considering the sheer size of Boeing, which sits at a $100 billion+ market cap, this $450 million bet could pay off in a bigger way. Looking at the current stats, the market for air taxis is worth $818 million right now, but it’s estimated to grow at a 26% compound annual growth rate until 2030, which would value it at a whopping $6.6 billion by then.

With the backing of Boeing, Wisk will be able to ramp research and development considerably, and we could see the pair benefit as a first-mover in a lucrative market.

MyWallSt gives you access to over 100 stock picks and the research to back them up. Our analyst team posts daily insights, subscriber-only podcasts, and the headlines that move the market. Start your free trial now

 

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

Continue reading for FREE

  • Includes free newsletter updates, unsubscribe anytime. Privacy policy

Latest articles