Flying car stocks are booming among retail investors as the technology approaches full-scale deployment. Last week, the Japanese company NEC tested a passenger-carrying aircraft. The vehicle stayed airborne for a minute.

But Japan isn’t the only country eager to launch passenger-carrying aircraft. Dubai, Singapore, and New Zealand are among other countries ready to get in on the action. Also, Uber (NYSE:UBER) plans to create similar vehicles. Penny stocks can be a good choice for those who can invest in this technology of the near future.

Lilium (LILM)

Since 2020, Lilium (NASDAQ:LILM) has shown growth only for short periods. Since its debut on the public market, this flying car stock has faced a difficult trajectory, witnessing a drop of 93%. However, experts believe that this situation will change. 

First, Lilium has announced two significant partnerships expected to serve as a starting point for the company’s continued growth. The first one is the development of an individual tire design from Michelin. For Lilium aircraft, such interaction means a qualitative leap in terms of innovation and technology. Michelin has a century of experience working in the aviation industry, which gives investors confidence.

Secondly, Lilium has expanded its partnership with InoBat. This company specializes in electric battery technology. The agreement focuses on providing a high-volume production line for advanced battery cells.

The innovative design of Lilium’s aircraft sets it apart from other players in the industry. The 30-fan design allows the aircraft to tilt vertically, providing optimal lift. This improves aircraft efficiency, providing advantages in capacity, noise control, and integration.

Hence, LILM is representative of a flying car penny stocks, and some analysts are skeptical about its performance. LILM’s current price is below $1.3 but the average target price is over $2, implying a significant upside potential of over 150%. This forecast is weighed against the prevailing market uncertainty and investor hesitation.

Joby Aviation (JOBY)

Joby Aviation (NYSE:JOBY) is an electric vertical takeoff and landing (eVTOL) innovator. The company develops air taxis that are adapted to the urban environment. This futuristic transportation solution aims to change the way people commute.

Several governments are showing interest and support. They are actively looking for opportunities to invest in Joby’s initiatives. This is reflected in the establishment of new Joby plants outside the U.S.

The revolutionary discoveries of the past (trains, cars, helicopters) have already proven to be economically attractive to investors who seized the chance. And the emergence of electric air taxis is opening up new horizons. To some, the concept of air taxis may seem ambitious. Yet, the potential dividends from even one successful venture can outweigh the many losses. So this underscores the profitability of investing in industries on the verge of transformation.

Joby has received a Federal Aviation Administration (FAA) certificate for aircraft testing and plans to begin commercial flights by 2025. These plans will likely be realized, as the test flights over New York were successful. Also, the company’s commercial flights were brought closer by grants from California and Dayton, Ohio.

Delays in certification, regulatory changes, or market fluctuations could affect the company’s projected timelines and operational plans. However, the potential rewards of participating in a transformational industry are significant. These flying car stocks are currently trading at a price one-third less than their mid-2023 peak. This is a great opportunity for investors who did not manage to buy last year.

Archer Aviation (ACHR)

Since the beginning of the year, Archer Aviation (NYSE:ACHR) shares have shown a return of 249%.

Stellantis, Boeing, and United Airlines are already on the list of Archer Aviation partnerships. Strategic alliances with industry giants show the seriousness of the company’s intentions. And, it resonates with the company’s plans to enter the markets of the United Arab Emirates (UAE) and India by 2026. We can expect Archer to continue to expand its global presence.

Analysts note a significant increase in orders and a growing backlog of unfilled orders. The company’s $142 million contract with the U.S. Air Force and a recent $500 million order from Air Chateau International for 100 eVTOL aircraft are proof of ACHR’s demand.

ARK Invest owns a significant stake in ACHR. Additionally, other investors are trying to keep up. Despite the financial losses reported by Archer Aviation, investors’ optimism about long-term growth potential remains strong.

Also, Rapid implementation and wide availability are part of Archer Aviation’s strategy. The company has acquired BETA Technologies charging systems that use the Combined Charging Standard (CCS). The initiative to promote an interoperable charging system for electric aviation demonstrates a forward-thinking approach. That is why not only short-term investors should pay attention to these flying car stocks, but also those who are used to playing the long game. The innovative company has many advantages for those who are willing to wait. 

On the date of publication, Julia Magas did not hold (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.