Next generation aircraft developer Alef Aeronautics Inc. is just shy of claiming $1 billion in preorder value.
The San Mateo electric vertical take-off and landing (eVTOL) startup said it has reached a milestone number of 2,850 orders Monday. The Business Journal originally reported the milestone number back in December when the company announced it would be begin taking pre-orders from Chinese consumers for its Model A aircraft.
Alef expects to sell its vehicle, which will seat one to two people in a bubble-like cabin, for $300,000 a piece. At that price, the company now has a combined order value of close to $850 million, and it's a figure Alef CEO Jim Dukhovny said shows the demand eVTOLs have in the market.
"Auto manufacturers create millions of cars per year, but we are very far from that," Dukhovny told the Business Journal. "It's going to take us some time to ramp up to the numbers compatible not only with aviation industry, but with automotive industry also."
Last July, the company first announced it reached a a preorder value of $750 million in revenue upon delivery.
Consumers can pre-order one for $150 to get in the general queue or $1,500 to be in the priority group. Consumers can pull their order at any time.
According to Alef, the company’s pre-orders are coming from the U.S., Canada, Europe and Asia, but declined to provide more specifics out of "privacy of our customers."
"The decision of what region we start deploying to will most likely depend on favorable legal environment rather than where most customer pre-orders will come from,” the company said.
Alef was featured as one of nine startups selected for the Bay Area Inno Awards, a joint editorial project between the San Francisco Business Times and Silicon Valley Business Journal to shine a light on companies that are taking innovation to the next level.
Of the same size and shape as a regular car with wheels that allow it to go on streets, the Model A has a system of rotors under its mesh-like skin designed to propel it in the air and allow it take off and land vertically. The company envisions the vehicle using its flying feature to navigate above traffic-locked roads and highways.
The company is expecting to begin manufacturing the first commercial Model A by the end of 2025, Dukhovny said.
Separately, Alef is working on developing its Model Z, a four-person sedan. The company is expecting to launch that model come 2035 at a $35,000 price tag.
Alef is currently in the process of certifying its eVTOL with the FAA. Already, the company secured a permit from the aviation agency to begin testing its Model A.
The certification only allows the company to fly the Model A for research and exhibition purposes, the FAA told the Business Journal at the time. According to Dukhovny, it allows the company to “move closer to bringing people an environmentally friendly and faster commute, saving individuals and companies hours each week,"
The company is also exploring certifying its Model A as an ultralight vehicle. Currently, the model weighs 850 pounds, which means it can fall under the same classification as a golf cart.
Dukhovny said by exploring an ultralight certification it would make it easier to get the OK from regulator.
“We are finding more jurisdictions where we would be considered an Ultralight, hence requiring minimal to no certification,” he said. “However, those limit the usage of the vehicle.”
In December, Dukhovny said he was exploring the option of also certifying the Model A in China, although, it has yet to begin its certification process with the Civil Aviation Administration of China (CAAC), the country’s version of the Federal Aviation Administration.
In October, the CAAC fully certified an eVTOL from aircraft development company EHang Holdings Ltd. The Guangzhou-based company has developed a fully autonomous flying eVTOL that can carry up to two passengers. It's reportedly the first company in the world to get this certification.
Since its founding, Alef has raised close to $14 million in venture funding and is valued at $21.4 million, according to PitchBook Data. Draper Associates and Santa Clara Ventures are among its backers, according to PitchBook.
