Flying car stocks are a very interesting and still nascent sector with the potential to 10X an investor’s capital.
2023 was a year that was very favorable to the upstart sector, the excitement around the potential of flying cars, otherwise known as eVTOLs, was strong and American manufacturers were particularly successful during that period, more than doubling in some cases.
However, 2024 has not been as kind to the sector and the leading stocks therein. By and large, revenues are a promise of the future and not a present reality. combine that truth with the fact that regulatory hurdles need to be overcome before sales can materialize, and you can see why 2024 has been more difficult.
Yet, eVTOLs are clearly in demand, especially in the aviation and defense sectors. Future bookings are impressive and companies that deliver will be rewarded richly. That means investors willing to take a position now legitimately have the chance to secure 10x returns.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is one of the first names that is going to come up for any investor researching flying car stocks. It, along with the other two companies discussed below, are essentially the only flying car stocks worth considering at this point.
Anyway, Joby Aviation has proven to be quite volatile over the past 12 months. A year ago shares were priced around $11. They’ve since fallen back near five dollars. Again, the realities of being a pre-revenue firm in an upstart sector have weighed heavily on Joby Aviation and other flying car stocks.
There’s arguably a strong opportunity amidst all the chaos. Joby Aviation is the only company to have its airworthiness criteria published by the FAA. The company’s second production prototype rolled off the manufacturing line during the first quarter. It is expected to join the first production Prototype at Edwards Air Force Base later this year. that DOD partnership warrants further explanation because it’s one of the primary reasons to believe in Joby Aviation moving forward.
The company is also on track to deliver two vehicles to MacDill Air Force Base in 2025. Meanwhile, Joby Aviation is expanding its future operations in the United Arab Emirates. The company has secured the exclusive rights to operate air taxis within the Emirate. It has signed strong deals with both Dubai and Abu Dhabi.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) stock continues to benefit from the strong relationship it has forged with Stellantis (NYSE:STLA).
There’s more good news coming from that partnership and that’s a great place to start in discussing Archer Aviation. Archer Aviation recently reached a test flight milestone that prompted further investment into the company from Stellantis. The company received an additional $55 million in funding following the successful test flight.
Stellantis made $39 million of open market purchases of Archer Aviation stock earlier this year. That followed a 110 million investment into Archer Aviation made by Stellantis in 2023.
Meanwhile, Archer Aviation’s high volume production facility in Covington, Georgia is expected to come online later this year. The 350,000 square foot facility is capable of producing 650 vehicles annually.
The company also recently signed a memorandum of understanding that grants the company access to the largest private network of aviation terminals globally. It’s fair to say that most of Archer Aviation’s potential lies ahead of it and not behind.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) is an exceptional flying car stock for a number of reasons. the biggest of which is the simple fact that EHang Holdings has already commercialized.
Unlike its American counterparts, the Chinese firm has passed the pre-revenue stages and is making money. In fact, revenues increased by 178% during the first quarter, reaching $8.5 million. Net losses narrowed by 27% during the same period. Perhaps most importantly, EHang Holdings sold and delivered 26 units during the first quarter.
The company also achieved positive cash flow from operations in the first quarter.
EHang Holdings Just received an order for 30 additional units from Wenchang County with A 50% down payment already made. the company will receive the remaining 50% upon delivery. importantly, The customer plans to purchase an additional 270 units by the end of 2026 and already paid a non-refundable deposit. I would argue that EHang Holdings represents the surest bet when it comes to flying car stocks.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.