As farfetched as it may sound, flying cars could be in the skies by 2025. In fact, after impressing crowds at the Detroit Auto Show, Alef Aeronautics may be one step closer, which could help create big opportunities for flying car stocks. While its Model A prototype didn’t fly, drive or even open at this year’s show, it is being “designed to drive on the street, take off vertically when needed and fly overhead above traffic,” the company said on its site.
It’s also expected to set consumers back about $300,000 price tag on release. However, there’s still big interest in a car with a diving range of 200 miles and a flight range of about 100 miles. And, of course, Alef isn’t the only one trying to take flying cars public. Apparently, hundreds of other companies want to take flying cars public, too.
For example, Australian flying car maker Ace VTOL just received a $250 million order for its vehicles to be sold in U.S. showrooms as early as 2027. Of course, that’s pending certification from the Federal Aviation Administration (FAA).
While we won’t see overhead congestion or air rage any time soon, the market could be substantial. According to Allied Market Research, the market could be worth about $3.8 billion by 2035 from about $215.54 million in 2025. Morgan Stanley says the global flying car market could be worth $1.5 trillion by 2040.
With that potential, investors may want to consider these three ideas.
Flying Car Stocks: XPeng (XPEV)
Late last year, XPeng’s (NYSE:XPEV) X2 flying car took to the skies in Dubai. Then, earlier this year, the Chinese government gave it a special flight permit, making it the first company in China to receive such certification.
“The X2 winning the special flight permit marks an accelerating development for flying cars and will propel the whole eVTOL sector forward,” said the company, as quoted by China Daily. Reportedly, the X2 can fly for up to 35 minutes, with a flight speed of about 80 mph.
As we wait for XPEV to take to the skies, its electric vehicle (EV) business is still seeing good demand, too. In fact, it just reported monthly deliveries of 13,690 Smart EVs — a 43% year-over-year increase — and about 24% month-over-month. XPEV last traded at $16.69. From here, I’d like to see it test its previous high of $24.
Joby Aviation (JOBY)
We can also revisit Joby Aviation (NYSE:JOBY), which I mentioned on Sept. 11. While the stock hasn’t taken off just yet, give it time. The market is still in its infancy. But what I like about Joby is that it now has FAA certification and has plans to start commercial passenger operations by 2025.
Remember, Joby partnered with Delta Air Lines (NYSE:DAL) to deliver home-to-airport transportation services, with a goal of starting in New York and Los Angeles. The airliner stated in a press release that “Delta has made an upfront equity investment of $60 million in Joby, with the opportunity to expand the total investment up to $200 million as the partners achieve substantive milestones on the development and delivery of the service.”
First Trust Nasdaq Transportation ETF (FTXR)
Or, if you want to safely diversify at a low cost, you can pick up the First Trust Nasdaq Transportation ETF (NASDAQ:FTXR). With an expense ratio of 0.60%, the ETF tracks the Nasdaq U.S. Smart Transportation Index. Some of its top holdings include Tesla (NASDAQ:TSLA), FedEx (NYSE:FDX), Delta Air Lines (NYSE:DAL), and United Airlines (NASDAQ:UAL).
Since May, the ETF soared from about $25 to a high of $31.17 before pulling back to $28.15. From here, I’d like to see the ETF again challenge prior highs.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
