Flying cars are the future.

What seemed like fiction may soon become reality. In 2022, the flying car market was valued at about $220M, while in 2032, it is expected to grow to nearly $4B, representing astounding growth. Many companies are in the flying car space. However, it is highly competitive, and only the best will survive. Below are three of the best flying car stocks to invest in.

Flying Car Stocks: Archer Aviation (ACHR)

San Jose-based Archer Aviation (NYSE:ACHR) is one of the biggest electric vertical take-off and landing (eVTOL) aircraft companies.

Though relatively new, it’s made significant strides toward establishing itself in the flying car market through contracts. Recently, it penned a Space Act Agreement with NASA. This makes it the sole flying car company partnered with the space giant. NASA is pursuing eVTOL technology to make the U.S. the future leader of this new form of air transportation.

Additionally, some of the technology will be used on space missions. Also, Archer Aviation is supplying the U.S. government with its Midnight model, earning a large contract of up to $142 million. 

Further, Archer’s financials support the buy thesis. Currently, the company is only valued at around $1.5 billion, indicating room for significant growth. If the flying car market performs well, Archer Aviation is one of the companies at the forefront of innovation that will likely benefit. Finally, the company is narrowing down its losses, losing around $110 million in the past quarter in comparison to around $180 million 3 quarters ago. 

XPeng (XPEV)

XPeng (NYSE:XPEV) is a leading Chinese flying car company with significant innovation in the field.

It is responsible for the development of the modular flying car concept, an eVTOL model that can quickly turn into a ground car. Through partnerships with the UAE, Egypt, Azerbaijan, Jordan and Lebanon, they are expanding into new markets. Its groundbreaking technology forges onward while receiving funding to continue with innovation. 

Furthermore, XPEV’s financials are almost as strong as its fundamentals. Considering that the company has a strong EV segment, it is able to offset many of the losses that come with eVTOL development and fund research and development in the field. Truly, most eVTOL companies don’t even have revenue. However, XPeng reached a staggering $13.05B in the past quarter while boasting a profit margin of only -10.33%. While its losses are not ideal, they are significantly better than its competitors’. In fact, it has been consistently dropping. Just a year ago, its profit margin was -57.94%.

Flying Car Stocks: EHang (EH)

EHang (NYSE:EH) is one of the largest flying car companies in China. It has created the world’s first electric Autonomous Aerial Vehicle. Additionally, EH has an impressive list of successful eVTOL models, such as the EH216-S.

After thousands of tests and sales in different Chinese cities, EHang just started selling its eVTOL models to the rest of the world, setting itself up to be one of the only eVTOL companies with revenue. The company’s model is truly innovative. EHang is on track to reach economies of scale, which will place it ahead of the competition in the eVTOL space. 

Finally, EH’s financials also support a buy thesis for the company. It is one of the only eVTOL companies with revenue, reporting $56.6 M in the past quarter. Additionally, its revenue is skyrocketing, growing at over 260% year-over-year (YOY). While losing money, its losses are constantly shrinking as revenue increases. 

On the date of publication, Tomas Levani 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.