Key Points
Beta Technologies is an electric air taxi concept with plans to serve industrial cargoes and medical supplies.
The company just raised over $1 billion in an IPO, which it will need because of its heavy cash burn.
The early-stage nature of the eVTOL business makes an investment in Beta Technologies risky.
If you ask an investor about electric vertical takeoff and landing (eVTOL) stocks, they might know about Joby Aviation or Archer Aviation. Both stocks went public during the 2021 boom and were soaring in 2025. But there are other eVTOL stocks out there that few investors are talking about today.
One is Beta Technologies(NYSE: BETA). After raising over $1 billion in an initial public offering (IPO) last year, the company is poised to enter the eVTOL market with innovative business strategies. But does that mean investors should buy the stock today?
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Building innovative electric air taxi solutions
Like Archer and Joby, Beta Technologies has been designing its own eVTOL, which is currently undergoing certification by the Federal Aviation Administration (FAA). Since these electric air taxis use unconventional launch pads (similar to a helicopter) and runways, they are undergoing a strenuous approval process. Beta Technologies management does not expect approval for its standard eVTOL concept for years.
Where it does expect approval somewhat soon is with its conventional takeoff design, which is a fully electric aircraft. This system uses traditional runways to launch the vehicle and, therefore, can bridge the gap with faster approvals from regulators.
Once both aircraft are approved, Beta Technologies will focus on serving cargo and medical supplies rather than passenger traffic, which differs from competitors in the space. What's more, it is building out a charging network at takeoff hubs that work with all types of eVTOLs. It is this diversification that has already had Beta Technologies generating revenue of $35.6 million last year.
Image source: Getty Images.
Cash burn concerns
In its IPO, Beta Technologies raised just over $1.01 billion by selling shares at $34.00, a successful IPO from a fundraising perspective, with shares of the stock now down to $17.00. As of the end of 2025, the company had $1.7 billion in cash on the balance sheet.
It will need all this cash, and maybe more, as the company burns through funds to scale up manufacturing before certification. Even after certification, a heavy manufacturing business still requires upfront spending, as Tesla did in the automotive sector. Beta Technologies posted a $373 million loss from operations last year, a figure that is likely to balloon in the years ahead.
If delays occur in the eVTOL approval process, Beta Technologies may need to raise additional money from the capital markets. However, the company does have a solid cash pile for now, giving it at least a few years of runway to try to get the ball rolling.
Should you buy Beta Technologies stock?
The stories spun by eVTOL companies -- as well as their promoters -- can feel utopian: A future where traffic is eliminated in major cities around the globe because people and cargo can take flying taxis directly from point A to point B. Who wouldn't want that?
Where problems lie is the classic headwinds that are present for all early stage technology companies: Delays and cost overruns. All the eVTOL stocks are experiencing significant cash burn, little to no revenue, and an uncertain path to FAA approval.
Plus, even if the FAA approval happens, it does not mean a stock like Beta Technologies is cheap. For one, there is significant competition in the eVTOL sector, which could drive down stock returns as supply outpaces demand. Second, Beta Technologies' stock is already trading as if its business has been a wild success. The stock has a market cap of $3.9 billion, compared to well under $100 million in annual revenue. Even if it can start pumping out eVTOL vehicles for customers, we are likely still many years away from $1 billion in revenue, and with what one can assume will be slim unit economics.
The bull case for a stock like Beta Technologies can make it seem like an incredible opportunity. But any investor needs to seriously consider how likely a bull case is and where the stock is trading today. For these reasons, investors should stay away from Beta Technologies and all other eVTOL stocks for the time being. There are better options for your portfolio.
Should you buy stock in Beta Technologies right now?
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Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
