Flying-Car Startup Backed by SpaceX Has Almost 3,000 Preorders

A $300,000 flying car, called the Model A, is currently being developed by Alef Aeronautics, a Silicon Valley startup backed by SpaceX as well as Tim Draper, who has also invested in Elon Musk’s SpaceX and Tesla. The company has already secured more than 2,850 preorders for the futuristic vehicle, according to Business Insider.

Based in San Mateo, California, Alef Aeronautics has revealed a rise in preorder figures for its two-seater flying car, the Alef Model A. The company announced a new milestone, exceeding its previous record of 2,500 preorders, according to CNBC.

For customers to get access to preorders for the Model A online, a $150 deposit will need to be put down for the vehicle. Customers will be able to withdraw their deposit at any time, so they are not committed to the purchase.

When the model becomes available on the market, the potential price tag attached to the innovative car will be $300,000. With 2,850 preorders already secured, the combined order value exceeds $850 million as of now.

Jim Dukhovny, CEO of Alef, said, “As of today we have a little bit more than 2,850 preorders with deposits down, which makes it the bestselling aircraft in history, more than Boeing, Airbus, Joby Aviation and most of the eVTOLs [electric vertical takeoff and landing vehicles] combined.”

Alef is amongst many startups — such as U.S. firm Joby Aviation and Lilium, the German air taxi startup — trying to break into the flying car market. Speaking to CNBC last year, the South Korean company SK Telecom said it plans to launch a flying taxi service in 2025 in collaboration with Joby Aviation.

With the Model A’s hefty price tag of $300,000, Alef is asking potential customers to make an upfront investment. Dukhovny is certain that the higher price point is crucial given Alef’s status as a startup that has yet to generate substantial revenue.

In the past, Elon Musk has been apprehensive about flying cars, saying he doesn’t think they’re fit for road traffic.

Speaking about the topic in a Bloomberg interview in 2017, Musk said, “If somebody doesn’t maintain their flying car, it could drop a hubcap and guillotine you.” He added, “Your anxiety level will not decrease as a result of things that weigh a lot buzzing around your head.”