Guotai Junan: Alef's test flight flying car Model A could further accelerate the process of low-altitude economic commercialization.

Guotai Junan released a research report stating that the American company Alef Aeronautics has successfully completed testing of its prototype flying car Model A in urban environments, achieving vertical take-off and landing as well as crossing obstacles, and is expected to accelerate the commercialization process of low-altitude economy. Meanwhile, domestic car companies are actively entering the flying car market, and are expected to leverage their own technological strength and manufacturing advantages to promote the commercialization and application of flying cars from concept to reality. Guotai Junan's main points are as follows: Dual functionality of driving on land and flying may be a new direction for the development of low-altitude economy The appearance of Model A is similar to a regular car, allowing it to drive normally on city roads and achieve vertical take-off and landing. With hidden propellers and a mesh carbon fiber body, it combines the aesthetics of a car with the stability of flight. When fully charged, Model A can fly horizontally for up to 177 kilometers and travel on the ground for up to 322 kilometers. Currently, domestic eVTOL manufacturers mainly focus on single vertical take-off and landing functions, without including land driving functions. The dual functionality of Model A in the air and on land is significant as it breaks the traditional limitations of single-function transport vehicles and provides technical support for future changes in travel methods. Costs are expected to continue to decrease, accelerating the commercialization process In July 2023, Model A received special airworthiness certification from the Federal Aviation Administration (FAA) in the United States and received investments from companies like Elon Musk's SpaceX. It has already received 3,300 pre-orders, demonstrating strong market expectations for flying cars. It is planned to start production and delivery in the fourth quarter of 2025 with a price of approximately 300,000 USD (about 2.17 million RMB). With the maturation of aircraft manufacturing technology and the emergence of economies of scale, costs are expected to continue to decline. Alef is currently developing the second flying car, Model Z, with an estimated starting price of around 35,000 USD (about 254,000 RMB), planned to be released in 2035. As the costs of flying vehicles decrease in the future, more affordable prices will attract ordinary consumers, truly integrating flying cars into everyday life. Domestic car companies actively laying out the flying car market, improving industry technology and ecology continuously In addition to professional eVTOL manufacturers like Ehang Intelligence, many domestic car companies are actively participating in the low-altitude economy. For example, Xiaopeng Huitian's "Land Carrier" project is scheduled for delivery in 2026, Guangzhou Automobile Group has launched the flying car brand "GOVY Gaoyu," planning to start airworthiness certification in 2025, Chongqing Changan Automobile is expected to release a flying car in 2026, Geely Holdings' Volocopter AE200 is in the testing phase, and Chery's Tri-Wing flying car has successfully completed its first flight. By entering the low-altitude economy, car companies are expected to leverage their own technological strength and manufacturing advantages to push flying cars from concept to commercial applications. Stock picks Main manufacturers: Beneficiary targets include Zhejiang Wanfeng Auto Wheel (002085.SZ), Chengdu Jouav Automation Tech Co., Ltd. (688070.SH), Sunward Intelligent Equipment (002097.SZ); Power systems: Beneficiary targets include Zhuhai Enpower Electric (300681.SZ), Wolong Electric Group (600580.SH), Chongqing Zonsen Power Machinery (001696.SZ), Anhui Yingliu Electromechanical (603308.SH); Flight control systems: Beneficiary targets include Hangzhou Freely Communication (603602.SH), AVIC Airborne Systems (600372.SH); Air traffic control systems: Beneficiary targets include Nanjing Les Information Technology (688631.SH), Sichuan Jiuzhou (000801.SZ). Risk warnings 1) The industrialization process of the low-altitude economy may not progress as expected; 2) Industrial policies may not be implemented as expected.