Flying cars and electric vertical takeoff and landing (eVTOL) vehicles remain a hot issue in the stock market. Investors continue to be highly interested in the sector due to the strong expectation of rapid growth. The research seems to back the assertion that flying car stocks will take off in the coming years.
Reports suggest that between the years 2022 to 2040, investors can expect compound annual growth rates of 58% across the industry.
While strong growth rates alone are highly attractive, investors are looking for other factors, especially partnerships, to help them identify early winners.
Archer Aviation (ACHR)
Archer Aviation (NASDAQ:ACHR) has developed strong partnerships both commercially and publicly. Those partnerships will undoubtedly serve to strengthen its prospects going forward as it attempts to commercialize eVTOLs.
Currently, Archer Aviation’s strongest partnerships exist with Stellantis (NYSE:STLA), United Airlines (NASDAQ:UAL) and the U.S. Air Force.
Archer Aviation’s private investment in public equity has been heavily funded by Stellantis and United Airlines. The $215 million private investment in public equity has been led by those firms, which continue to be strong partners of Archer Aviation. United Airlines originally invested $25 million in Archer Aviation back in 2021. The company also delivered an additional $1.5 million for the delivery of 100 of Archer Aviation’s eVTOLs more recently.
Meanwhile, Stellantis also continues to invest in Archer Aviation. The company already provided $55 million to Archer Aviation and is its primary partner in building out its high volume manufacturing and test facility in Georgia.
Additionally, in early October, Archer Aviation received an initial $1 million payment of a $142 million contract from the U.S. Air Force. Its vehicles have the potential for strong growth should they serve useful to the military.
Joby Aviation (JOBY)
Joby Aviation (NASDAQ:JOBY) is another flying car stock with promising private and public partnerships — and is Archer Aviation’s primary competitor.
Leading corporations including Delta Airlines (NYSE:DAL), Toyota (NYSE:TM) and Korea’s SK Telecom have all invested heavily into Joby Aviation. SK Telecom committed $100 million to Joby Aviation late in June. That commitment suggests a future in which Joby Aviation could see its vehicles used in Korea’s major city, Seoul.
Toyota continues to provide Joby Aviation with powertrain and actuation components that will ultimately help its vehicles take flight. To date, that investment stands somewhere in the neighborhood of $400 million.
Delta Airlines is working with Joby in order to develop a commercial partnership that will see Joby’s vehicles used in Delta Airlines operations. That partnership could be worth as much as $200 million, contingent upon Joby Aviation hitting certain milestones.
Meanwhile, on September 25, Joby delivered its first electric air taxi vehicle to Edwards Air Force Base ahead of schedule. That delivery commences Joby Aviation’s contract, valued at $131 million with the Department of Defense.
Eve Holdings (EVEX)
Eve Holdings (NYSE:EVEX) is a subsidiary of Brazilian aircraft manufacturer, Embraer (NYSE:ERJ). The stock is therefore fundamentally different from that of Joby and Archer. Whereas Joby and Archer Aviation both have to satisfy the dual demands of airline operators and the military, Eve Holdings can instead focus on serving its parent.
Eve Holdings has partnerships with Embraer, SkyWest Airlines (NASDAQ:SKYW) and Vertical Aerospace (NYSE:EVTL). To date, Eve Holdings has managed to build a larger European footprint than either of the two firms previously mentioned above.
In June, Eve Holdings announced a continuation of its partnership with Blade Air Mobility (NASDAQ:BLDE). Thus, it’s becoming increasingly clear that Eve Holdings vehicles will be utilized in Blade Air Mobility’s routes and networks.
Early indications are that initial flights will take place in France and then expand to additional European nations. It’s important for investors to remember that the flying car industry remains very young. However, to date, the three companies and stocks mentioned above look to have established early partnership leads that will continue to serve their respective investors well moving forward.
On the date of publication, Alex Sirois 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.
