On October 20, 2024, Mudrick Capital Management, L.P. (Trades, Portfolio) made a significant move in the aerospace sector by acquiring 2,665,243 shares of Vertical Aerospace Ltd (NYSE:EVTL). This transaction marked a new holding for the firm, purchased at a price of $7.11 per share. The total shares now held by Mudrick Capital represent a substantial 32.66% of their portfolio, indicating a major strategic investment with a notable impact of 10.70% on the traded stock.
Located at 527 Madison Avenue, New York, Mudrick Capital Management is a prominent investment firm known for its focused investment philosophy. With a portfolio comprising mainly of four stocks, the firm has a significant presence in sectors like Communication Services and Consumer Defensive. Their top holdings include Globalstar Inc (GSAT), 2U Inc (TWOUQ), and Getaround Inc (GETR), showcasing a diverse range of investments. The firm manages equity worth approximately $39 million, reflecting its robust market engagement.
Vertical Aerospace Ltd, based in the UK, is at the forefront of electric aviation technology. The company specializes in the development and commercialization of eVTOL (electric vertical take-off and landing) aircraft, particularly the VX4, which is designed to carry four passengers with zero operating emissions. Since its IPO on December 16, 2021, Vertical Aerospace has been focused on revolutionizing air travel by making it personal, on-demand, and carbon-free.
The acquisition by Mudrick Capital Management significantly bolsters its stake in the aerospace and defense sector, particularly in innovative technologies like eVTOL. Holding over 10% of Vertical Aerospace’s shares, the firm has positioned itself as a key investor with potential influence over the company’s strategic directions. This move could signal Mudrick Capitals confidence in the future of electric aviation and its commercial viability.
Vertical Aerospace Ltd currently holds a market capitalization of approximately $111.584 million, with a recent stock price of $5.84, reflecting a decline of 17.86% since the transaction date. The stock has experienced a significant drop of 94.57% since its IPO and a year-to-date decrease of 15.12%. These figures highlight the challenges faced by the company in a volatile market.
