In the ever-evolving investment realm, the theme of flying car stocks is catching on.
Groundbreaking advancements in the sector are propelling the best flying car stocks. Moreover, these pivotal moments have effectively paved the runway for the commercialization of flying cars, with takeoff expected in the next 18 to 24 months.
While we’ve seen impressive ascents in some of the top flying car stocks, insiders believe we’re merely taxiing on the runway, gearing up for the real flight.
For those pondering over the potential size of this market, it’s best to hold onto your aviator glasses. Allied Market Research predicts a market valuation of roughly $215.5 million by 2025. Fast forward a decade, and we could be cruising at an altitude of $3.8 billion by 2035. Also, Morgan Stanley has a staggering forecast of a $1.5 trillion market by 2040.
Hence, it’s time for investors to buckle up as the future of transportation is taking to the skies.
Joby Aviation (JOBY)
In the bustling world of eVTOLs, Joby Aviation (NYSE:JOBY) has positioned itself as a frontrunner. Its recent FAA certification and ambitious roadmap in kick-starting commercial passenger operations by 2025 are indicative of its robust long-term potential.
The differentiating factor for Joby, though, is its strategic partnership with Delta Air Lines (NYSE:DAL). Together, they’re gearing up to revolutionize home-to-airport transportation, targeting the bustling hubs of New York and Los Angeles. Delta’s hefty equity investment in Joby started at $60 million with a potential expansion of up to $200 million. This financial commitment underscores the airliner’s confidence in the firm.
Furthermore, Joby’s aims to plant its first eVTOL factory in Dayton, Ohio, with a capacity to churn out 500 eVTOLs annually. Moreover, with Toyota (NYSE:TM) advising on the factory’s rollout, the future looks even brighter. Additionally, Joby’s recently delivered its first aircraft to Edwards Air Force Base. This occurred an impressive six months ahead of schedule. Thus, its lucrative contracts with the Department of Defense (DOD) add to its bull case.
Archer Aviation (ACHR)
In the rapidly ascending flying car sphere, Archer Aviation (NYSE:ACHR) is soaring to new heights. Over the past six months, its stock price has doubled, leaving many of its industry peers in the wake.
Founded in 2018, the firm’s meteoric rise continually gains traction from industry behemoths such as Boeing (NYSE:BA) and United Airlines (NASDAQ:UAL). Additionally, maverick stock-picker Cathie Wood has amplified her stake in Archer, with the recent addition of a whopping 250,000 shares to her flagship Ark Innovation ETF. This move underscores Wood’s confidence in the company’s trajectory.
Often dubbed a “flying taxi” enterprise, Archer is on a quest for FAA approval, eyeing a 2025 launch for its commercial operations. United Airlines’ ambitious plan to acquire 100 Archer aircraft for its air taxi service amplifies the company’s commercial potential.
Furthermore, with a hefty $142 million contract from the U.S. Air Force and over $1.1 billion in funding, Archer Aviation is strategically positioning to dominate both the commercial and defense aviation sectors. The FAA’s nod for flight testing its Midnight eVTOL model is yet another feather in its cap, signaling a luminous future for its business.
First Trust Nasdaq Transportation ETF (FTXR)
Finally, are you an investor keen on tapping into the transportation sector without putting all your eggs in one basket? If so, the First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) may emerge as your compelling choice.
With a modest expense ratio of 0.60% and an impressively tight bid/ask spread at just 0.11%, this ETF offers a cost-effective gateway in the transportation sector. The ETF provides a diversified and relatively low-risk avenue to capitalize on the burgeoning flying car trend.
Furthermore, the ETF also shines in the dividends department, boasting a yield of 1.8%. Even more enticing is its robust three-year dividend growth rate, which stands at a remarkable 54%. Its notable holdings include industry giants of Tesla (NASDAQ:TSLA), FedEx (NYSE:FDX), Delta Air Lines, and United Airlines. These heavyweights further cement FXTR’s position as a balanced and promising investment vehicle in the transportation space.
On the date of publication, Muslim Farooque 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.
