When Tesla (NASDAQ:TSLA) stock got listed, the story was shrouded by skepticism. There were doubts on the industry growth and the company’s ability to move over a massive cash burn. However, TSLA stock turned out to be a wealth creator. Irrespective of its current challenges, early entrants in TSLA would have made millions. I see a similar story panning out for selected flying car stocks.
It’s 2024 and some of the best flying car companies are targeting commercialization within the next 12 to 18 months. Could this be signaling the beginning of a growth story likely to last decades? Estimates point to the global flying car industry being worth $9 trillion by 2050.
For now, let’s examine potential value that can be created by the end of the decade. The top flying car companies will witness multi-fold revenue growth, translating into massive upside. Have a look at three stocks that can deliver multibagger returns from current levels.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) has been relatively subdued in the last six months. I expect a strong breakout on the upside with multiple positive business developments in the recent past.
Earlier this month, EH received the production certificate from the Civil Aviation Administration of China. This will enable mass production of the eVTOL aircraft and set the stage for growth.
Additionally, as of July 2023, the company’s eVTOL had conducted 39,000 demo and trial flights in 14 countries across Asia, Europe and Americas. Therefore, the company is likely to be aggressive in global expansion over the next 12 to 24 months.
As a part of its global expansion initiative, EHang Holdings has set up an urban air mobility (UAM) center in Spain and Japan. In the United Arab Emirates (UAE), the company is partnered with Wings Logistics Hub. It will develop the UAM and smart city management in the UAE, the Middle East and North Africa.
With aggressive expansion in China and clear plans for the global markets, EHang Holdings is positioning for stellar growth and value creation.
Archer Aviation (ACHR)
Year-to-date (YTD), Archer Aviation (NYSE:ACHR) stock has declined by 36%. This correction seems like a golden opportunity to accumulate stock. ACHR is on track for commercialization of electric vertical take-off and landing (eVTOL) aircraft in the U.S. in 2025.
In recent news, Archer Aviation indicated it will begin trials of its air taxis in India next year. Commercialization is expected in 2026 for cargo, logistics and medical emergency services.
Further, Archer Aviation and Falcon Aviation will be developing a vertiport network in Dubai and Abu Dhabi for commercial operations next year. The target is to make inroads in other Middle East and North Africa markets in the next few years.
To scale up operations, ACHR plans to complete the Georgia eVTOL manufacturing facility in 2024. It will support production of up to 650 aircraft annually. Therefore, with upcoming commercialization and ambitious expansion plans, ACHR stock looks attractive.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is another hot name among flying car stocks for multibagger returns. Expect certification from the U.S. Federal Aviation Authority (FAA) in the first half of 2025.
As of February, the company had completed three of five certification stages. During Q4 of 2023, JOBY completed the first-ever flight of an electric air taxi in New York City.
Moreover, the company ended 2023 with a cash buffer of $1 billion. Therefore, ample flexibility will allow aggressive investments. Joby Aviation plans to develop capability to manufacture 500 eVTOL annually.
Finally, JOBY has exclusive rights to operate air taxis in the UAE for six years. Also, the company plans to expand its engagement with the U.S. Department of Defense (DOD). This will be another key catalyst for revenue growth in the coming years.
On the date of publication, Faisal Humayun 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.
