The world is getting closer to flying cars, creating a massive opportunity for some of the top flying car stocks to buy. XPeng (NYSE:XPEV), for example, is on course to deliver its flying car to customers by 2026.
“The reason we are confident, is because we are designing this for the use, not in urban centers, but for outskirts in scenic areas where…we will work with municipalities to create flying parks and flying zones that allow people to enjoy flying without the hassle of getting all the complicated approvals,” said Brian Gu, co-president of the company, told CNBC.
At the moment, the flying car is reportedly going through the certification process with Chinese aviation regulators. If successful, and we start to see even more flying cars take to the skies, we could be looking at a potential $1 trillion market opportunity by 2040, as noted by JPMorgan.
From there, the flying car market could be worth closer to $3 trillion with it getting into cargo and military operations. With that potential, it’s time to buy flying car stocks while they are cheap.
Joby Aviation (JOBY)
Aside from XPEV, another one of the hottest flying car stocks to own is Joby Aviation (NYSE:JOBY).
Over the last few weeks, the company moved into its next phase of test flights after completing pre-production flight tests. Now, as it heads into the production prototype aircraft phase, it can earn tax credits and move even closer to commercialization.
JOBY also has plans to launch in Dubai before anywhere else by 2025. Better, JOBY has a six-year exclusive agreement to operate its electric air taxi service in the region. It’s also preparing to launch air taxi trials in India by next year, with potential commercialization by 2026. Plus, it widened its partnership with the U.S. Air Force through a commitment to deliver two aircraft to MacDill Air Force Base by next year.
While its earnings haven’t been too hot yet, that’s to be expected from a pre-revenue company. Still, it has a solid balance sheet with $924 million in cash, etc., with no long-term debt. Trading at less than $5, it’s a solid bet moving forward.
eHang Holdings (EH)
After rallying to $20.40, eHang Holdings (NASDAQ:EH) dipped to $16.02, where it’s again a strong buy opportunity.
Morgan Stanley just initiated an overweight rating on shares of EH, with a price target of $27.50. “We view eHang as a pioneer in the urban air mobility (UAM) market — with the world’s first [type certificate] awarded, validated products, and access to a multi-trillion [renminbi total addressable market] in China,” added the firm.
In addition, recent earnings weren’t too shabby. While its earnings per share (EPS) loss of 14 cents missed by 5 cents, revenue of $8.53 million — up 173.12% year over year — beat by $1.98 million. It also achieved positive cash flow from operations, which is now the second consecutive quarter that the company was able to do this.
Even better, the issuance of a certificate from the Civil Aviation Administration of China is a massive catalyst for the company. EH can now begin mass production of its EH216-S pilotless eVTOL [electric vertical takeoff and landing] aircraft.
Lilium (LILM)
The last time I mentioned Lilium (NASDAQ:LILM), I noted, “After bottoming out at around 80 cents, LILM is now up to $1.10. From here, I’d like to see it test $1.50 again soon. The announcement that advanced air mobility operator UrbanLink agreed to buy 20 LILM Jets with an option to buy 20 more has helped significantly.”
I also noted that LILM is also in advanced talks with the French government to expand its LILM jet production capacity, which reportedly includes potential government subsidies and loan guarantees.
Since that mention, LILM hit a high of $1.33 and pulled back to about 89 cents. All after the company announced the pricing of $114 million in financing. I’d buy that recent weakness, especially with the company growing at a faster pace.
With patience, I’d like to see shares of LILM climb back to about $1.40 initially. Longer term, I’d like to see it closer to $3 a share.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
