Flying cars, long a sci-fi dream, inch closer to reality with numerous companies advancing in the field.
Once seen as speculative, these stocks are now gaining traction as a tangible part of the future of transportation. Beyond novelty, they serve practical purposes such as emergency services, medical evacuations, and cargo delivery. The current market offers attractive entry opportunities. Some stocks are even undervalued or trading below key inflection points, presenting potential bargains for investors.
Despite their seeming impracticality, investments in these firms hold substantial profit potential. The flying car sector, worth $220 million in 2022, is projected to skyrocket to over $1.5 trillion in two decades, boasting a 55%+ compound annual growth rate (CAGR).
Flying cars hold the promise of a transformative transportation shift, offering eco-friendliness, reduced travel time, and enhanced productivity. While their everyday use remains a future vision, consider these top three flying car stocks.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is a prominent electric vertical take-off and landing (eVTOL) player in the flying car industry.
With U.S. Air Force contracts and plans for eVTOL deliveries in 2024, JOBY stock appears undervalued. It has earned recognition as a top project in Urban Air Mobility according to the AAM Reality Index by SMG Consulting.
Despite ongoing losses and no current revenue, Joby has a solid financial foundation, including $1.2 billion in cash reserves. Partnering with Toyota (NYSE:TM), which invested $400 million for over a 10% stake in the company, brings valuable equipment and expertise. Additional investors like Baillie Gifford, with an 8% ownership, further bolster Joby’s financial stability as it advances its product development.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) shares similarities with Joby Aviation and is currently operating at a loss. However, it has secured substantial investments from major players such as Boeing (NYSE:BA) and United Airlines (NASDAQ:UAL).
The company’s ambitious goals in the air travel industry attracted the attention of prominent investor Cathie Wood, who acquired over $30 million worth of shares in August. Institutional backing often suggests undervaluation, making ACHR a top flying car stock, especially when considering various metrics and indicators.
EHang (EH)
EHang Holdings (NASDAQ:EH) is a leading Chinese flying car firm and the first eVTOL company to go public.
While it has shown impressive year-over-year (YOY) revenue growth of 23% as of June 2023, EHang remains unprofitable, with a Q2 2023 loss of approximately $75 million. Not surprisingly, this is a common trend in the eVTOL sector.
Moreover, it stands out in the eVTOL market with its EH216 air taxi, boasting a top speed of 80 mph and versatile applications. Priced at $300,000 per unit, it serves as an air taxi, fire-fighting drone, and medical supply transporter. EHang’s extensive testing network covers 19 sites in 17 Chinese cities, with over 8,000 trial flights completed.
On the date of publication, Chris MacDonald 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
