Among the emerging investment themes, it’s been a big year for some of the best flying car stocks. I am not just talking from the perspective of stock price action. Flying car companies have witnessed major developments. This has set stage for commercialization of flying cars in the next 18 to 24 months.
It’s not surprising that some of the best flying car stocks have surged. However, it’s just the beginning of the rally. Corrections can be used for accumulating flying car stocks before the next big breakout.
To put things into perspective in terms of market size, the global flying car market is expected to grow at a CAGR of 25.1% through 2030. By the end of the decade, the market size will be worth $17.84 billion. Of course, the growth momentum is likely to sustain beyond this decade.
Let’s therefore talk about three of the best flying car stocks to buy and hold for the next big breakout
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is among the best flying car stocks to buy and hold. After trading at highs of $11.98 in July, JOBY stock has corrected by 38% to current levels of $7.3. I believe this correction presents a good accumulation opportunity with business developments being positive.
I believe that there are tow major positives to note. First, the company has already submitted stage three certification plans to the Federal Aviation Administration. The company is heading towards commercial launch of services in 2025.
Further, the company’s prototype has already commenced flight testing. The company expects its first eVTOL (vertical take-off and landing car) to be delivered to the United States Air Force in early 2024.
Joby Aviation has also been strengthening its balance sheet. At the end of Q2 2023, the company reported $1.2 billion in cash. The recent cash infusion of $280 million by Baillie Gifford and SK Telecom underscore the company’s execution capability.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) stock has witnessed a big rally of 211% in the last 12 months. The flying car stock is worth accumulating on corrections. Interestingly, EH stock has short interest that’s 21% of the free-float. A short squeeze rally might be on the cards on major business developments.
In a recent news, the company’s unmanned aircraft cloud system has been approved by the Civil Aviation Administration of China for UACS trial operations. This is a major milestone for the company. It’s worth noting that EHang has already conducted 9,300 successful low-altitude tourism flight trials across 18 cities in China.
Additionally, more than 39,000 test flights have been conducted in 14 countries. In July, the test flight to transport blood bags in Belgium was conducted. The key point is that EHang is making aggressive efforts to build global presence. This will yield results in the next few years.
I also don’t see any concerns on the financial front as the company grows. Recently, EHang received $23 million in financing from several strategic investors.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) stock has skyrocketed by 226% for year-to-date. I believe that some correction might be on the cards after a massive rally. However, it’s among the best flying car stocks to buy and worth keeping in the radar. A 20% correction from current levels would be a good entry point for the next big rally.
In a big development last month, Archer Aviation has received all approvals from the Federal Aviation Administration to commence flight test operations. The vertical take-off and landing aircraft testing will be in early 2024 and is likely to serve as another big catalyst for ACHR stock upside.
In August, the company also received $215 million in investment from Stellantis (NYSE:STLA), Boeing (NYSE:BA), United Airlines (NYSE:UAL), and ARK Investment Management LLC. The investment from biggies underscores the company’s development credentials. On commercialization, I expect ACHR stock to be a multibagger.
On the date of publication, Faisal Humayun did not hold (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.
