Like a scene out of The Jetsons, we may soon see cars taking to the skies and plenty of headline news on flying car stocks. And if you want, you can actually pre-order a flying car from Alef Aeronautics for about $299,999. Not only is it a clean energy vehicle, but it’s also expected to have a driving range of 200 miles and a flight range of about 110 miles, according to Business Insider. The company plans to launch the vehicles in 2025.
Even better, the flying car market could be massive. By 2025, for example, the market could be worth about $215.54 million, according to Allied Market Research. By 2035, it could be on its way to becoming a $3.8 billion market. According to Morgan Stanley, we could be looking at a potential $1.5 trillion market by 2040.
According to the firm, “Flying cars could initially gain market share from cars on the road, planes and public transportation. However, it could also open up a whole new world of business across multiple sectors. In its base case, these opportunities point to a total addressable market of $1.5 trillion by 2040. A more bullish forecast places the market at $2.9 trillion.”
While we wait to see how it all takes shape, some of the top flying car stocks to watch include:
Flying Car Stocks: Joby Aviation (JOBY)
Air taxis just got a step closer to taking flight. All after the Federal Aviation Administration (FAA) gave Joby Aviation (NYSE:JOBY) clearance to start its test flights. Now, with further success and further FAA certification, the company plans to start commercial passenger operations by 2025.
Joy Aviation partnered with Delta Air Lines (NYSE:DAL) to deliver “transformational, sustainable home-to-airport transportation service to Delta customers, beginning in New York and Los Angeles,” as noted in a Delta press release.
Better, at the end of the second quarter, the company had $1.2 billion in cash. It also strengthened its balance sheet with new funding of $280 million from investments by investment firm Baillie Gifford and SK Telecom. Cantor Fitzgerald likes the JOBY stock, raising its price target to $10 from $9 a share.
Archer Aviation (ACHR)
We can also look at Archer Aviation (NYSE:ACHR), another leader in the electric vertical takeoff and landing (eVTOL) aircraft market. For one, it just received FAA approval to fly its Midnight eVTOL aircraft. Two, it reached an agreement with Boeing (NYSE:BA) and Wisk for autonomous flight collaboration, as noted in a company press release.
Three, Archer inked about $142 million in contracts with the Department of Defense. The contract will include the delivery of up to six of Archer’s Midnight aircraft to the U.S. Air Force. And four, it’s still receiving hefty investments. In fact, it just announced it received $215 million in investments from Stellantis (NYSE:STLA), Boeing (NYSE:BA), and United Airlines (NYSE:UAL).
ARK Invest is also a key investor. In fact, the ARK Innovation ETF picked up 199,949 shares. The ARK Autonomous Technology & Robotics ETF bought 26,067 shares, as the ARK Space Exploration & Innovation ETF picked up another 7,334 shares.
SmartETFs Smart Transportation & Technology ETF (MOTO)
If you want further exposure to flying cars, there’s also the SmartETFs Smart Transportation & Technology ETF (NYSEARCA:MOTO). With a net expense ratio of 0.68%, the ETF invests in companies that will benefit from the revolution in transportation.
That, according to SmartETFs.com, includes “companies that manufacture, distribute, service, offer, support, or enable the following: electric vehicles, autonomous vehicles, transportation as a service, flying autonomous vehicles, autonomous or electric public transportation, and hyperloop-based transportation, for passengers or goods.”
Some of its top holdings include Nvidia (NASDAQ:NVDA), Eaton Corp. (NYSE:ETN), Tesla (NASDAQ:TSLA), and ON Semiconductor (NASDAQ:ON), to name a few. Since the year began, the MOTO ETF exploded from about $34 to $45 before pulling back to $41.31. In the near term, I’d like to see the MOTO ETF closer to $48 a share.
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.
