Vertical Aerospace's U.S. Tour Highlights Marketing Push Amid Unresolved Financial Crisis

What happened

Vertical Aerospace launched a U.S. tour in New York City this week, bringing its Valo electric aircraft to America for the first time and outlining plans for electric air taxi routes with partners Bristow Group and Skyports Infrastructure. This move builds on the Valo's unveiling in London in December 2025 and is part of a broader strategy to engage customers and investors globally. However, the DeepValue report reveals that the company remains pre-revenue, with a 2024 net loss of ~£781 million, negative equity of -£499 million, and explicit going-concern warnings. The announcement does not address the critical ~$700 million funding gap needed for certification by 2028 or the looming risk of a covenant breach in Q4 2025 without new capital. Thus, while this tour aims to boost commercial interest, it fails to alter the fundamental financial and operational risks that underpin the equity's speculative nature.

Implication

The U.S. tour and route plans provide incremental visibility but lack concrete progress on certification or financial stabilization, leaving core vulnerabilities unchanged. Vertical's cash burn of ~£90-100 million annually and ~$700 million additional capital need remain unaddressed, heightening the likelihood of future dilution or a distressed recapitalization that could impair equity. Mudrick Capital's control and complex derivative financing further subordinate common shareholders, offering little downside protection in adverse scenarios. Competitors like Joby and Archer are better-funded and closer to commercialization, eroding Vertical's market position despite this promotional push. Therefore, the Strong Sell thesis is reinforced, as investors face unchanged binary risks centered on financing and regulatory approvals.

Thesis delta

The new article details a marketing initiative that enhances Vertical's global engagement but does not resolve the fundamental financial or regulatory challenges identified in the DeepValue report. No material shift in the investment thesis is warranted; the Strong Sell rating persists due to unaddressed funding gaps, negative equity, and high execution risks.