Flying car stocks could become the next big thing in investing. Moreover, a lot of numbers are being thrown regarding their market size from reputable corners, generating excitement among investors over potential long-term gains. According to Allied Market Research, the flying car industry could be worth $215.5 billion by 2025. Therefore, with so much money on the table, it’s an opportune time for investors to contemplate investing in the top flying car stocks to buy.
Despite the lofty numbers, it seems the market isn’t going all-in with the flying car narrative yet. The double-digit negative recent gains in the KraneShares Electric Vehicles and Future Mobility ETF (NYSEARCA:KARS) support this notion. However, looking at the bigger picture, flying car stocks could be a major investment theme this year and beyond, as could other emerging technologies.
Flying Car Stocks to Buy: Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is a top air taxi play, that’s been in correction in the past couple of quarters. The stock is down 16% in the past six months, having delivered a 36% gain last year for its shareholders. Nevertheless, it is marching forward with aplomb with its business plans and is on track to commercialize its air taxis by 2025. Moreover, outside the U.S., it boasts a definitive agreement with the government of Dubai to operate air taxis in the region for six years.
Consequently, Seeking Alpha analysts estimate its fiscal 2025 sales to be $52.75 million, compared to estimates of $2.75 million this year. If it can achieve that number, JOBY stock is a multi-bagger investment. Additionally, it ended last year with a cash buffer of $1 billion, which provides it the impetus to continue pursuing its plan aggressively without diluting shareholder value in the foreseeable future.
EHang (EH)
EHang (NYSE:EH) is a leading Chinese eVTOL play and one of the most successful stocks in its niche. Thanks to several positive business developments, EH stock surged 102% last year, outperforming the S&P 500’s 33% gain.
EHang is behind the world’s first electric autonomous aerial vehicle and has recently completed its commercial flight demonstration in Guangzhou and Hefei. It wrapped up 2023, delivering 52 units of its flagship EH216 aircraft, recording $8 million in sales during Q4, a substantial 261% increase from the prior-year quarter. Moreover, it has inked an agreement with Wings Logistics, which Wings will acquire up to 100 EH216 aircraft, focusing on operations in the UAE, the Middle East, and North Africa.
Analysts at Seeking Alpha predict EHang will end 2024 with an impressive $57.23 million in sales, almost doubling those numbers to $108.65 million the following year. More importantly, they expect the company to break even in fiscal 2025, with a 42-cent EPS.
Flying Car Stocks to Buy: XPeng (XPEV)
Chinese EV giant XPeng (NYSE:XPEV) has always been at the forefront of innovation, and its endeavors in urban air mobility are no different. X2, its novel flying car prototype, completed its maiden voyage a couple of years ago, making an impactful appearance at the GITEX Global conference in Dubai that year. The venture places the company in a unique spot, with pre-orders expected to open later in 2024 and deliveries anticipated for 2025.
The great thing about XPeng is that it boasts a solid EV business that recently posted blow-out results. Deliveries in Q4 were up 171% YOY to 60,158, with revenues of $1.84 billion, beating analyst estimates of $1.76 billion. Moreover, reported EPS of a negative 28 cents came in ahead of analyst estimates of a negative of 46 cents. Hence, with a robust core business, it can effectively offset losses from its flying car division and continue funding research and development in the field.
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.
