"$100s of Billions" Why is ARK Invest buying into Air Mobility and Air Taxis $ACHR $JOBY $EH $LILM

uh and as you said with space there are some huge opportunities we're not just disrupting some legacy businesses like you know satellite radio satellite tv uh and expanding those we're creating whole new markets sam koris analyst for arkanvest focuses on automation robotics energy storage and space exploration as we mentioned earlier air taxis this is a whole new opportunity that could be hundreds of billions of dollars on march 30th arc invest launched its new etf based on space exploration and innovation archex i thought this etf would contain many of the companies working on advanced air mobility a market projected to be valued at 1.5 trillion by 2040 in this video we will examine the characteristics that make evital companies a perfect fit for arc invest strategy what are the few air mobility companies they are currently holding in their etf and we will look at the factors that could be preventing kathy wood to be more bullish on this industry at this moment [Music] we believe that there are five innovation platforms evolving at the same time this has never happened in history you have to go back to the late 1800s to see three innovation platforms evolving at the same time back then electricity telephone and the internal combustion engine for the 50 years through 1929 because of those innovation platforms we experienced a booming economy and very low inflation we see that happening with these five platforms which are already we believe for prime time the five innovation platforms upon which we base all of our research are dna sequencing robotics energy storage artificial intelligence and blockchain technology these platforms cut across sectors they cut across geographies they cut across markets and importantly they are converging with each other to spawn new innovation arc invest has identified 14 transformative technologies that are approaching tipping points as costs drop unleashing demand across sectors and geographies and generating more innovation these technologies can be grouped into the five major platforms mentioned before when looking at air mobility we can say that the main enabler is energy storage followed by robotics and artificial intelligence drawing the advanced air mobility ecosystem in the cluster will look like this where autonomous mobility clearly sits in the center and technologies such as mobile connected devices and 3d printing play an important role batteries are a key component when designing any vtol aircraft the vertical takeoff and landing stages of the flight require great amounts of energy this is why energy storage is the main innovation platform that is enabling the evital revolution sam koris explains lithium-ion batteries have been around since the early 1990s but we're approaching some really exciting tipping points the costs are coming down faster than anyone anticipated and they're not just enabling electric vehicles and energy storage but they're also changing the way we travel what a lot of people don't realize is that battery cost declines aren't going to just stop battery costs are going to continue to fall and make endless applications available not only the cost of batteries is decreasing but the performance of battery cell development has rapidly improved over the past decades the battery density has grown significantly but also the cell's ability to provide sufficient power battery energy density and power density are projected to continue to increase as the chart suggests [Music] on june 10th archer unveiled maker a full-scale two-passenger demonstrator aircraft capable of traveling 60 miles at 150 miles per hour the maker represents a tilting rotor architecture type of aircraft find out more on evtol categories in this video kathy wood has been buying shares of atlas crest investment corporation ticker symbol icic a special purpose acquisition company to merge with archer currently at a 3.8 billion dollars valuation arc invest owns 33.4 million dollars worth of shares representing 0.88 percent of the company it's important to mention that these shares are held across two of our funds where 88 belong to rq arc autonomous technology and robotics etf and the remaining 12 percent belong to archex the ark space exploration and innovation etf hi i'm brandon keane chief technology officer of blade and i want to talk to you today about urban air mobility so what do we mean by that we mean short flights between urban city centers and the areas between urban air mobility might sound like the future but blade has been doing it for five years in strategic locations like new york los angeles and mumbai blade already blade is a technology powered short distance aviation company committed to reducing travel friction by enabling cost-effective air transportation alternatives to some of the most congested ground routes in the u.s and abroad arc invest holds 3.92 million shares of blade ticker symbol bld blade market capitalization currently is 745 million arc holds a 37 million dollar part representing 4.97 percent of the company blade shares are held across arcs and rq funds where 80 belong to rq arc autonomous technology and robotics etf and the remaining 20 percent belong to arc x the arc space exploration and innovation etf is important to mention that blade announced a binding agreement to secure up to 20 beta technologies aircrafts scheduled for delivery in late 2024 [Music] we believe that noise will largely define the success or failure of this industry to be successful we have to deliver customers as close to their destination as possible this means regular flights in and out of built-up areas which only works if the aircraft is really quiet with more than 1 000 test flights completed over the last 10 years joby aviation is one of the leading companies in evtol air mobility and will be one of the first to enter the market arc invest has acquired shares of reinvent technology partners ticker symbol rtp a special purpose acquisition company to merge with joby aviation currently at a 6.6 billion dollars valuation arc invest owns 11.8 million dollars worth of shares representing 0.18 of the company the totality of joby aviation shares are held in arcax the ark space exploration and innovation etf [Music] there is no doubt advanced air mobility will be one of the most disruptive and innovative industries of the next decade but just because a company fits perfectly with arc invest thematic investment strategy that doesn't mean it should be incorporated into their etfs arc selected companies must meet the return and growth profile considered to be of at least 100 in five years this brings us to the first factor valuations so we we're certainly keeping an eye on many of the private companies as well uh we're seeing an uptick in uh private companies going public via spax so we are are certainly uh that's expanding the universe and opportunities uh but we we do keep an eye on valuation that's been kind of pushing us away from some of these companies that have recently gone public uh even though they they are more poor pure play uh companies right uh just because they fit the space theme doesn't necessarily mean it makes sense from a valuation standpoint that that is really what's important can these opportunities deliver kind of long-term returns and growth for investors it is really hard to justify any of the current valuations by any metric in most cases these startups won't see any revenue until 2024. here is a list of the top publicly traded advanced air mobility companies sorted by valuation you can find the link to the full list in the description picking winners uh and i think with stats it's important to remember a lot of these are almost at the pre-ipo stage and you know we do our research and so we really want to be sure that we're picking the winners long term particularly in aerospace where you know many many companies do go bust and things get delayed so we we are really doing everything we can to make sure that all of our investment decisions are backed by research arc focuses on trying to pick the winning companies in the long term and in the case of ev tall companies the task is really hard at this point there are still many obstacles these companies have to overcome in particular related to regulations u.s tendency unquestionably tesla is kathy wood's favorite stock elon musk's company falls under three of the five key innovation platforms identified by arc energy storage robotics and ai but so does many other electric vehicle companies in particular in china where companies such as neo and xbang are major players with a big market share but arc invest doesn't own any of these companies in their etfs a similar case could be made in the advanced air mobility market as we have seen the totality of arc holdings are u.s companies ehang ticker symbol eh a major player in the urban air mobility market and the one likely to own a big part of the chinese market is not included in arc etfs conclusion as i mentioned earlier we have these huge hundreds of billion dollar opportunities that are just taking place today and just starting so you know we mentioned that satellite connectivity hypersonic point-to-point which might be a bit further out uh but something that we're seeing happen uh you know as as we speak is this air taxi environment and we have batteries that have come down and cost autonomous technology that's coming to place that's going to open up this market that never existed before and i know i'm personally excited to be able to go from downtown new york to jfk for 75 in an air taxi as opposed to paying the same amount in an uber or something and sitting in traffic for two hours i believe we will see ark invest buying more and more shares on ev tall companies in the coming years as we discussed before the advanced air mobility market fits perfectly with arc strategy many of these companies will complete their merger with this back in the upcoming months making arc re-evaluate their decision on them after all this industry is in its infancy and an exciting and worthwhile future lies ahead i make technology and market analysis on the new and exciting evita revolution see you in the next video

Channel: eVTOL innovation

Views: 25,970

Keywords: Cathie Wood, Ark Invest, Ark invest strategy, arkx, ark space etf, urban air mobility, uam, advanced air mobility, aam, evtol, electric vertical take off and landing, Air mobility, air taxis, flying cars, Archer, $acic, Joby aviation, $rtp, Lilium, $qell, ehang, $eh, Blade, $blde

Id: AU0jZNVkYEA

Length: 11min 42sec (702 seconds)

Published: Mon Jul 12 2021