3 Stocks to Buy as Flying Cars Get Closer to Take Off

Flying Car Stocks - 3 Stocks to Buy as Flying Cars Get Closer to Take Off

Source: Shutterstock

  • Joby Aviation (NYSE:JOBY): This electric rideshare company is not far from making flying taxis a reality.
  • Archer Aviation (NYSE:ACHR): Major airline deal makes this upstart a valid competitor in the city rideshare market.
  • EHang Holdings (NASDAQ:EH): Chinese firm has plans to become the biggest global air-taxi operator.

Market research firms tend to paint rosy futures for nascent industries. That’s within their best interest as they sell that information to investors, and positive news sells. The nascent flying car industry is no different: Market research firms are expecting rapid and massive growth. And some tech CEOs believe flying cars could be commercially available by 2024.

While we should take prognostications with a grain of salt, there is still reason for plenty of optimism. The market is expected to grow from $215.54 million in 2025 to $3.8 billion by 2035. For long-term-oriented investors, that 34.1% compound annual growth rate holds massive appeal.

Returns likely won’t be immediate, but an investment now could multiply several-fold within a few years. That said, let’s dig into four companies worth considering right now.

JOBY Joby Aviation, Inc. $5.31
ACHR Archer Aviation Inc. $3.88
EH EHang Holdings Limited $9.63

Flying Car Stocks: Joby Aviation, Inc. (JOBY)

Person holding smartphone with logo of startup and aerospace company Joby Aviation (air taxi) on screen
Source: T. Schneider / Shutterstock.com

Joby Aviation stock will be interesting to investors seeking ownership of a pioneering firm in the electric flying car rideshare space. The company has been developing vertical takeoff vehicles for the last 10-plus years. The plan is to commercialize a vehicle with a 150-mile range that accommodates a pilot and four passengers that can fly at 200 miles per hour.

The vehicle is propelled by six electric motors and one of its most promising test cases is the transport of New York City passengers from downtown to JFK airport. That trip current takes roughly 50 minutes by car. Joby Aviation intends to slash that commute to seven minutes. The company has similar plans to transport passengers between Osaka, Japan and Kansai International Airport.

One of the biggest hurdles for any flying vehicle company is regulators. Simply put, flying vehicles will never take off in Ameria without the Federal Aviation Administration (FAA) approval. The good news for Joby Aviation is that the company announced that it has initiated Phase 4 of 5 Part 135 Air Carrier Certificate from the FAA. That certificate will allow Joby Aviation to operate its vehicles as an air taxi service in cities and communities across the U.S.

Further, the company announced in the same press release that it intends to launch that service in 2024. That could help JOBY stock really take-off.

Archer Aviation Inc. (ACHR)

The logo for Archer Aviation (ACHR) displayed on a smartphone.
Source: T. Schneider / Shutterstock.com

Investors interested in Archer Aviation stock will find largely the same appeal as in Joby Aviation. Both firms are aiming to transport city dwellers much faster than current technology allows, and both firms operate electric vertical take-off and landing vehicles (eVTOLs).

Archer Aviation, though, is a much younger firm, having been founded in 2018. Its vehicles have a shorter range of 60 miles and reach top speeds of 150 miles per hour. That’s lower than the 150 mile range and 200 mile per hour top speed of Joby Aviation’s vehicles.

But despite the relatively weaker specs, Archer Aviation managed to secure a large deal from United Airlines (NASDAQ:UAL) in 2021. That deal includes an order for $1 billion worth of Archer’s vehicles and the option for future vehicle purchases valued at $500 million.

That logically suggests Archer Aviation could feature heavily in transporting United’s passengers between busy downtown areas proximal to the airports it serves.

The company posted a $348 million net loss throughout 2021. That is to be expected in such growth companies. The upside is that the company successfully undertook its first hover flight in late 2021.

The firm is a later entrant than Joby Aviation so the ACHR stock bet is that it can engineer in the technological leaps and bounds that have occurred over the past decade and quickly come to market.

Flying Car Stocks: EHang Holdings Limited (EH)

An image of a busy city street with autonomous cars and taxis, UAVs carrying packages flying overhead
Source: Solveig Been/Shutterstock

Size matters. So if EHang Holdings’ aspirations to become the largest global air taxi operator come to fruition EH stock will likely skyrocket in value. Companies that carve out the largest portion of an industry often control the shape of the market.

EHang is approaching the market with a bit of a twist. Its vehicles carry two passengers and are controlled autonomously. The company is also developing a logistics arm to its business that includes the use of smaller drones.

Another interesting aspect of EH stock is that the company recorded $8.9 million in 2021 revenues. That’s much more appealing to investors who don’t want to wait and wonder about speculative air taxi services that may or may not ever reach the sky.

That said, EHang Holdings is still in its growth phases and reported a $49.3 million net loss in 2021 overall.

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.

Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/3-stocks-to-buy-as-flying-cars-get-closer-to-take-off-eh-joby-achr/.

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