Wall Street Favorites: 3 Flying Car Stocks with Strong Buy Ratings for May 2024


  • Flying car stocks may be a risky bet right now, but Wall Street already has these 3 favorites:
  • EHang (EH): EHang is capturing market share in China and the UAE.
  • XPeng (XPEV): Despite electric vehicles being all the craze, XPeng has made meaningful strides to develop an eVTOL aircraft.
  • Archer Aviation (ACHR): The Abu Dhabi Investment Office is pouring millions of dollars to help Archer Aviation launch. 
Flying Car Stocks to Buy - Wall Street Favorites: 3 Flying Car Stocks with Strong Buy Ratings for May 2024

Source: Ico Maker / Shutterstock.com

When thinking about the future of urban transportation, many consider electric vehicles (EVs). This makes sense, as EVs have successfully permeated through the social zeitgeist. Not only do government across the globe seek to promote their use, but new car buyers have also developed a liking for them.

As an investor, however, it’s imperative to look beyond current trends in the market and think about what future opportunities are out there. Flying cars represents a nascent field within urban transport that could bring about immense change in the sector. The electric Vertical Takeoff and Landing (eVTOL) aircraft market was worth $12.5 billion towards the end of 2023 and is predicted to grow to $35.8 billion by the 2032.

Within this growing market, there are already winners and losers. Below are the flying car stocks that Wall Street is pretty excited about.

EHang (EH)

Flying taxi or Car-drone-EHang 216 exhibited by Prestige Image Motor Cars at the 2023 Indonesia International Motor Show (IIMS) at JIExpo Kemayoran. EH stock
Source: Toto Santiko Budi / Shutterstock.com

Chinese eVTOL aircraft manufacturer EHang (NASDAQ:EH) has made a number of my “flying car stocks to buy” lists. Despite what people’s initial thoughts on the Chinese economy may be, there is no doubt that the world’s second largest economy has been quite open to eVTOL technology. The Civil Aviation Administration of China (CAAC) became the first major air transportation authority to approve and certify an eVTOL aircraft. In fact, CAAC approved EHang’s flagship product, the EH216-S.

EHang isn’t just focused on breaking into the Chinese market; rather, EHang has made important in-roads into the United Arab Emirates (UAE). At the end of 2023, the Chinese eVTOL aircraft manufacturer signed long-term partnership with Wings Logistics, an Abu Dhabi based company, to introduce EHang eVTOL products to the UAE. In the deal, Wing Logistics will purchase around 100 eVTOL aircraft from EHang.

EH shares have risen more than 6% on a year-to-date basis and has accrued two “Strong Buy” and two “Buy” ratings from Wall Street firms, according to Koyfin.

XPeng (XPEV)

Xpeng (XPEV) car logo in Shanghai International Automobile Industry Exhibition. EV stocks to Buy
Source: THINK A / Shutterstock.com

XPeng (NYSE:XPEV) is another China-based company that rose to prominence by selling premium electric vehicles to consumers. Despite being a smaller EV maker competing in China’s hypercompetitive market, XPeng delivered solid first quarter results for 2024. XPeng delivered 21,821 vehicles, which represented a 20% year-over-year increase from the same period in 2023. Recent news that XPeng will compete head-on with BYD (OTCMKTS:BYDDY), targeting budget conscious consumers, has dominated headlines, but XPeng’s ambitions go beyond EVs.

Through subsidiary, XPeng AEROHT, XPeng is designing and manufacturing eVTOL aircraft. The Company’s flagship vehicle, XPeng X2 made its maiden voyage way back in 2021, and since then has accrued special flying permits from aviation authorities in Dubai and China. While XPeng’s eVTOL business is not the main driver of growth now, it shows the company is preparing for the next phase of urban transportation.

Seven Wall Street firms have given XPeng a “Strong Buy” rating, while eleven have given XPEV a “Buy.”

Archer Aviation (ACHR)

Person holding cellphone with logo of American eVTOL aircraft company Archer Aviation Inc. (ACHR) on screen in front of webpage. Focus on phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

Archer Aviation is a U.S.-based eVTOL aircraft manufacturer. The “Midnight” eVTOL aircraft is currently Archer’s flagship product that is awaiting Federal Aviation Administration (FAA) certification. In the meantime, Archer has worked to build rapport across the aviation industry. For example, in late January, Acher and NASA signed a Space Act agreement, which will allow the two entities to collaborate on “mission-critical eVTOL aircraft technologies.”

Archer Aviation has also caught the eye of Abu Dhabi investment authorities. In late April, the Abu Dhabi Investment Office announced a plan to accelerate Archer’s commercial development, which includes developing local manufacturing of Archer’s Midnight aircraft. The UAE has presented itself as a uniquely open market to these new eVTOL technologies, and Archer Aviation’s exposure to this market will reap benefits once it gets the Midnight aircraft into the market.

Archer Aviation has seven Wall Street firm covering its shares and six of them have rated the stock a “Strong Buy” or “Buy.”

On the date of publication, Tyrik Torres 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.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/wall-street-favorites-3-flying-car-stocks-with-strong-buy-ratings-for-may-2024/.

©2024 InvestorPlace Media, LLC