Ready to aim high with a risky but potentially rewarding bet on flying cars? If so, then you’ll definitely want to take a look at Archer Aviation (NYSE:ACHR). Yet, it makes sense to own both ACHR stock and another stock in the same category since Archer Aviation has a strong competitor.

I’ll discuss that competitor in a moment, but first, we need to get the lowdown on Archer Aviation. Surely, you’ll agree that if the flying car industry grows in the coming years, Archer Aviation will be an early and ambitious mover in this niche market.

Archer Aviation Secures Over $1 Billion in Funding

Archer Aviation specializes in building electric vertical takeoff and landing (eVTOL) aircraft. Informally, you might say that the company manufactures flying cars or flying taxis.

Any worthy competitor in the eVTOL space should probably have at least one government contract. In Archer Aviation’s case, the company secured an eVTOL manufacturing deal with the U.S. Air Force. This contract is reportedly worth up to $142 million for Archer Aviation.

Furthermore, Archer Aviation has managed to secure over $1.1 billion worth of funding. Some of Archer Aviation’s financial backers include Boeing (NYSE:BA) and Cathie Wood’s ARK Invest.

Perhaps most importantly, Archer Aviation’s Midnight eVTOL model has received a Special Airworthiness Certificate from the Federal Aviation Administration (FAA). Consequently, the Midnight eVTOL has the FAA’s approval to commence flight tests.

Don’t Just Buy ACHR Stock by Itself

If we view the flying car market as a horse race, then it’s risky to only bet on one horse to win that race. Therefore, it may be safer to make small bets on two top-tier eVTOL manufacturers instead of a large wager on just one manufacturer.

Investors can accomplish this by purchasing ACHR stock and Joby Aviation (NYSE:JOBY) stock. Like Archer Aviation, Joby Aviation has big-money backers; notable investors in Joby include financial firm Baillie Gifford and telecommunications company SK Telecom (NYSE:SKM).

Moreover, California Governor Gavin Newsom has publicly expressed his support of Joby Aviation. Plus, Joby might actually end up making history. That’s because, according to the company, Joby Aviation’s production prototype aircraft is “expected to become the first-ever eVTOL delivered to a customer.”

And, just like Archer Aviation, Joby Aviation reportedly has an agreement with the Air Force. In particular, Joby touted its plan to deliver its “first aircraft to Edwards Air Force Base” in early 2024 as part of the company’s “contract with the U.S. Air Force.”

Hedge Your Bets With ACHR Stock and JOBY Stock

Are you ready to join the eVTOL of the 2020s? Great — you can achieve this by taking a small share position in Archer Aviation.

But then, you’ll definitely want to diversify your stake in ACHR stock with an equally small-sized position in JOBY stock. It’s a smart way to bet on the future growth potential of the flying-car market without having to assume that Archer Aviation will take the industry’s no. 1 spot.

On the date of publication, David Moadel 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.