Boeing Wants To Make Flying Cars In Asia While Aircraft Unit Faces Severe Turbulence
Portfolio Pulse from Anan Ashraf
Boeing Co. (NYSE:BA) is planning to enter Asia's urban air mobility market by 2030 with flying cars, developing eVTOL vehicles at Wisk Aero in California. The company aims to obtain U.S. certification before expanding into Asia, with a new R&D base opened in Nagoya, Japan. This move comes as Boeing faces challenges in its core aircraft manufacturing business, including safety concerns and a significant drop in commercial aircraft deliveries, leading to a 32% decline in its stock price year-to-date.
April 19, 2024 | 9:26 am
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Boeing plans to launch flying cars in Asia by 2030, facing challenges in its core business with a 32% stock price drop year-to-date.
Boeing's venture into the urban air mobility market with eVTOL vehicles represents a strategic pivot that could open new revenue streams and diversify its portfolio, which is crucial given the current challenges in its aircraft manufacturing business. The establishment of a new R&D base in Japan underscores its commitment to innovation and the Asian market. However, the success of this venture and its impact on the stock price will depend on the company's ability to navigate regulatory hurdles, secure certifications, and effectively capitalize on the growing demand for short-distance air travel in congested cities.
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