Electric Vertical Takeoff and Landing (eVTOL) startup Vertical Aerospace made several significant announcements last week, including that it would be going public via a Special Purpose Acquisition Company (SPAC).

Vertical Aerospace--soon to be listed on the New York Stock Exchange as EVTL--has undoubtedly made a name for itself already, having secured significant investments from companies such as American Airlines (AAL  ), aircraft leasing company Avolon (AVOL  ), Honeywell (HON  ), and Rolls-Royce (RLLCF  ). Vertical has also secured pre-orders from American Airlines, Avolon, and Virgin Atlantic (SPCE  ).

"If you think about transportation strategically, this is the next big frontier. Whether it is airlines operating this as an add-on product or ride-sharing businesses in different jurisdictions, I think it is going to take a lot of different forms over time," said CEO Domhnal Slattery of Avolon.

The likely allure of Vertical to investors is the wide range of applications of a functional eVTOL aircraft, with air taxis such as those being designed by Vertical potentially serving as a first-generation "flying car." Not only would the vehicles assist in combating climate change through their electric drives, but eVTOLs could also potentially reduce traffic congestion, especially in urban areas.

There are, of course, limitations that potential investors of eVTOL firms should be aware of before considering an investment in a firm such as Vertical or rival Archer. Not only do any eVTOLs need to receive certification from the Federal Aviation Administration for use in commercial flight, but the implementation of eVTOL aircraft, in general, will likely take several years once deliveries begin.

"The way I look at this initial iteration of aircraft is really replacing an Uber (UBER  ) ride to the airport, or one rich person going from Philadelphia to Boston or something like that. The range on these is very small," said Cowen analyst Helane Becker.