California-headquartered startup Alef Aeronautics has received an overwhelming response for its futuristic flying car, the Alef Model A. The company has secured 2,850 preorders, amounting to over $850 million.

What Happened: Alef Aeronautics, based in San Mateo, California, has witnessed a surge in preorders for its two-seater electric vertical takeoff and landing (eVTOL) vehicle, reported CNBC on Monday. The preorders require a $150 deposit, which customers can withdraw at any time.

The company plans to sell the Model A for $300,000, bringing its total order value to over $850 million. This makes it the best-selling aircraft in history, surpassing established names like Boeing, Airbus, and Joby Aviation.

Alef’s CEO, Jim Dukhovny, attributes the high price to the company being a startup that isn’t generating significant revenue yet. The company is also developing a four-person sedan, the Model Z, scheduled for a 2035 launch of $35,000.

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Despite the company’s high preorder number, Dukhovny admits they won’t be able to meet that demand immediately.

While media reports have previously claimed Alef to be backed by SpaceX, the company told Benzinga that it has no affiliation with either SpaceX or its CEO Elon Musk.
Musk has also denied backing the company. 

Why It Matters: The flying car concept took root from a problem. As Dukhovny navigated the congested streets of various cities, he couldn't ignore the persistent problem of traffic congestion, he told Benzinga in an exclusive conversation.

While Alef is making strides in the flying car space, it’s not alone. Chinese EV manufacturer XPeng Inc‘s affiliate, XPeng Aeroht, has also been making waves with its X2 flying car. The company recently completed another successful autonomous flight test for the vehicle, showcasing its potential in the market.

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Editor’s Note: This report and its headline have been revised to incorporate a statement by Alef.

Image via Alef Aeronautics