Why Vertical Aerospace stock surged by over 70% to hit a three-month high of $11.62

Vertical Aerospace stock, the stock of the London-based zero-emission electric start-up, shot up on Tuesday and in the early hours of Wednesday before pulling back later in the day.

So, why did the stock shoot up? What was fuelling the price surge?

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Continue to read to find out why the price of Vertical Aerospace (EVTL) stock shot up on Tuesday before pulling back today.

What caused Aerospace stock price to rise?

The Deutsche Bank on Tuesday started covering Vertical Aerospace, Archer Aviation, and Joby Aviation stocks and consequently gave Vertical Aerospace a lukewarm rating with a price target between $9. Of the three stocks, only Joby Aviation stock received a buy rating from the bank receiving a price target of $10.

The lukewarm rating by Deutsche Bank on the Vertical Aerospace sent investors scrambling for the stock. The majority of investors believe the stock was doing well to be able to attract the attention of such a big international bank as Deutsche Bank.

In general, the bank was optimistic that the air taxi industry has the potential to grow arguing that the electric cars have evolved from “a niche market to [become today] the foundation of every automaker’s future relevance.”

Vertical Aerospace stock future

Interestingly none of the three companies to be covered by the Deutsche Bank is anywhere near operating profitably.

Vertical Aerospace has received major partnerships including from American Airlines, Avolon, Rolls-Royce, Honeywell, and Microsoft’s M12 but it is yet to be certified. It anticipates that it shall be certified by 2024.

While last year Vertical Aerospace only made a loss of $38 million, the startup will have to ramp up revenue above the $150,000 it collected last year for it to become a self-sustaining business.