Looking ahead to 2022, one of the hottest trends may be electric vertical takeoff and landing vehicles (eVTOL). The companies in this space have been making significant moves in 2021. That means this next year could bring growth… and gains. As Wall Street prepares for everything that is coming after the ball drops, investors should be watching eVTOL stocks.
Why? The demand for sustainable solutions in air travel are growing, and a new crop of companies has come public to fill that void. In fact, the last 12 months saw this list of eVTOL stocks debut to further the future of transportation.
Although eVTOL stocks have seen a fair amount of turbulence, they could be in for smoother flying in 2022. This means they are absolutely worth watching for anyone looking to electrification in the new year. Here are five names to watch:
- Archer Aviation (NYSE:ACHR)
- Blade Air Mobility (NASDAQ:BLDE)
- Embraer (NYSE:ERJ)
- Joby Aviation (NYSE:JOBY)
- Vertical Aerospace (NYSE:EVTL)
eVTOL Stocks to Watch: Archer Aviation (ACHR)
It’s been an excellent day for Archer, which closed up nearly 15%. ARCH stock came public in February 2021 and while it has fallen quite a bit since, the current pattern could suggest things are turning around.
Like others in the eVTOL space, Archer is making progress pursuing electric air taxis. Its Maker demonstration vehicle literally just got off the ground for the first time earlier this week, signaling the passing of an important test. Before conducting the hover test, the vehicle received a Special Airworthiness Certificate from the Federal Aviation Administration (FAA).
So what comes next? Forbes reports that the company plans to launch a full air taxi service no later than 2024. The passing of this initial test clears the way for the company to put the Maker through others within the coming year which, if successful, will likely boost share prices.
Blade Air Mobility (BLDE)
It’s also been a great season for this New York-based eVTOL innovator. Blade recently announced a deal with Helijet for $12 million in a clear attempt to keep pace with its competitors in the electric air taxi race. But Blade has been making moves all year that aren’t confined to the race to bring yellow cabs to the sky.
In September 2021, it announced the acquisition of organ transportation company Trinity Air Medical and shares were quick to soar as the company helped streamline the process of transporting vital organs to hospitals.
This type of innovative thinking has helped BLDE stock rise throughout most of the season. Shares are up roughly 5% for the month, displaying slow-but-steady growth. Last week the company reported strong annual numbers, with sales exceeding expectations at $51 million, prompting analysts to upgrade previous estimates. Blade’s success will only help other eVTOL stocks rise.
eVTOL Stocks to Watch: Embraer (ERJ)
The next name on this list has been enjoying a great week of trading and an overall outstanding season.
Embraer recently began surging on the announcement that its eVTOL unit Eve would go public via SPAC merger. As InvestorPlace Assistant News Writer Eddie Pan reported of the merger, “this innovation has the potential to change traditional aerial transportation” as “eVTOL aircrafts don’t require a long, horizontal runway. In fact, eVTOL aircrafts operate much like a drone with omnidirectional fans.”
Although ERJ stock is only gained 3%, shares rose nearly 20% for the week. And the Eve SPAC merger is likely to keep generating attention for Embraer.
The newly merged Eve stock won’t officially begin trading until 2022, though and when it does, ERJ will likely see even more growth. It should also be noted that Embraer has granted its smaller unit a license to use its intellectual property (IP) and employees in the design of future innovations. Both eVTOL stocks will be worth watching when Eve makes its debut.
Joby Aviation (JOBY)
This company hasn’t enjoyed quite as prosperous a month as some of its peers, but things may be looking up.
Why? Yesterday, Joby announced the acquisition of Inras GmbH, an Austria-based leader in the design of radar systems. As can be expected, Joby made the deal with an eye toward the development of its electric air taxi and it seems as though it could certainly provide an important edge.
Inras co-founder Andreas Stelzer stated that his company’s technology will will “improve the aircraft’s onboard detection and navigation capabilities in preparation for scaled operations.”
InvestorPlace contributor Josh Enomoto recently speculated that Joby could represent the “real future” of mobility in which urban-based people will opt toward air transportation when possible. This led him to name JOBY to a list of long-term stocks to buy for 2022, praising its business model. Similarly, contributor Stavros Georgiadis touted its vision and structure, noting that while he felt it was risky, it was still a company worth watching.
While the risk is certainly there, Joby also comes with plenty of upside potential, particularly as its sector gathers momentum and the company arms itself for the year ahead.
eVTOL Stocks to Watch: Vertical Aerospace (EVTL)
The final name on this list very recently came public, you guessed it, by way of a SPAC merger. Vertical Aerospace began trading on Friday, Dec. 17, and since then has had a turbulent journey.
Despite this rocky takeoff, the company has plenty to recommend it. Its backers and future clients include American Airlines (NASDAQ:AAL), Honeywell (NYSE:HON), Microsoft (NASDAQ:MSFT) and Rolls-Royce (OTCMKTS:RYCEY), a company that also backed Eve.
Fast Company reports that Vertical Aerospace currently has 1,35o conditional preorders from companies such as American Airlines and Virgin Atlantic. Like other eVTOL stocks named here, EVTL is certainly worth watching throughout the year ahead, particularly as it gets some time to warm up to the public markets.
On the date of publication, Samuel O’Brient 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.