As technology continuously finds better ways to improve our lives, we see advancements in self-driving cars, AI, cloud computing, and so much more. The growing interest in flying cars is one of the most exciting things catching our attention. Industry experts see the market reaching $23.4 billion by the decade’s end, a 52% CAGR.
While some may consider the technology and the market in their infancy, we already have public companies creating electric vertical takeoff and landing (eVTOL) vehicles—essentially flying cars. Developing eVTOLs are among the latest innovations that could disrupt traditional transportation. This allows investors to buy excellent flying car stocks before they take off. To help you with the selection, these are the three best flying car stocks we’ve seen.
Blade Air Mobility, Inc. (BLDE)
Anyone looking to avoid congested air and land routes may have heard of Blade Air Mobility, Inc. (NASDAQ:BLDE). With its cost-effective air transportation alternatives, this global air mobility platform aims to help consumers reduce travel friction. Its transportation services are done through its network of contracted aircraft operators in its three main lines of business. Short Distance is for its helicopter and seaplane flights. MediMobility operates the company’s organ transplant transportation service. Lastly, Jet and Other Business operates jet flights and jet charter services. The company also has a long-standing partnership with Eve Air Mobility, which aims to transform European air transportation.
According to the company’s latest financial results, net income reached $0.3 million, an excellent turnaround from a $9.26 million loss YoY. Due to this, EPS exceeded estimates by 100%. Adjusted EBITDA also reached profitability with $0.8 million, and revenue reached $71.4 million, a surge of 56% YoY.
The company has also made strategic initiatives to enhance its customers’ flight experience, including an exclusive airport in Atlantic City, an on-tarmac security screening at Nice International Airport in France, and an ongoing partnership with Helije. BLDE’s continued growth and improving financial metrics present a compelling case for why this stock is worth adding to your portfolio.
Joby Aviation, Inc. (JOBY)
If you hear about “Air-Taxi,” chances are people are talking about Joby Aviation, Inc. (NYSE:JOBY). The company is developing an eVTOL aircraft to conduct freight and passenger transport as a service. Their proposed all-electric aircraft can land, take off vertically, and cruise like a traditional plane. Joby can transport up to four passengers at a speed of 200 mph and a range of 150 miles per charge. The company intends to deploy its eVTOL aircraft in aerial ridesharing networks globally, with NASA enlisting it as one of its research partners for developing air taxis in U.S. airports.
JOBY has recently received a Part 145 repair station certificate from the FAA, which allows the company to conduct repair and maintenance on its eVTOLs. Additionally, the company just signed a landmark agreement with Dubai’s Road and Transport Authority that will allow the company to operate an air taxi service in the city as early as 2025. This means Joby Aviation has exclusive rights to operate air taxis for six years in one of the wealthiest cities in the world.
Joby’s current financials point to a strong turnaround performance. Net income was $1.5 million, a notable increase of $80.7 million compared to last year’s net loss of $79.20 million. The company also holds a strong financial position worth $1.1 billion in cash and cash equivalents to support its operations. While there are still challenges for the company, we’re confident that JOBY is one of the most attractive flying car stocks.
Archer Aviation Inc. (ACHR)
Another strong competitor in the air-taxi business and a notable competitor to Joby is Archer Aviation Inc. (NYSE:ACHR), an eVTOL designer and developer for urban air mobility (UAM) networks. The company owns the production aircraft Midnight, designed to transport up to four passengers at 150 mph to distances of up to 100 miles. ACHR intends to operate two main businesses. Archer Direct handles sales of cargo aircraft for commercial and military use, and Archer UAM operates its ride-sharing program. ACHR also collaborates with government agencies like NASA on various projects. It recently completed a phase 1 test certification to advance its FAA certification.
While we’re still a few weeks away from its next quarter financials, ACHR has been showing positive signs of future growth. The company has reduced its losses from $91.0 million to $51.6 million YoY by lowering its total operating expenses. Additionally, ACHR has plans to launch its air taxi services with key partners in the UAE and India. It has already secured partnerships and payments from contracts valued at $142 million with the U.S. Air Force. The company boasts strong liquidity with its $600.0 million cash and cash equivalents, mostly from its investments and debt facility. This can comfortably cover the cost of its high-volume manufacturing facility in Georgia.
In addition, Archer’s CEO, Adam Goldstein, says the company is on track to the planned commercial launch in 2025. Its ambitious expansion strategy and innovation, backed by its strong leadership and healthy cash flow, make the company one of the strong contenders for flying car stocks.
On the date of publication, Rick Orford 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.
