Although not as common now, flying cars could well be integrated into our future lives. It has the potential to completely change the way we travel and think about transportation. The flying car industry is fairly new, but it boasts a CAGR of 58.1% until 2040. With high return potential comes high risk, it is important for investors to carefully examine and pick only the best companies in the industry. These are the three best flying car stocks to buy in June 2024.
Lilium (LILM)
Lilium (NASDAQ:LILM) is a German air tax firm known for its famous Lilium Jet. This Munich-based aviation start-up is the world’s first company to develop all-electric vertical take-off and landing (eVTOL) aircrafts.
Lilium is planning on opening new sites in France while advancing its talks with the French government for possible subsidies and loan guarantees. Lilium will use these sites to build eclectic jet aircrafts. While Lilium is yet to be ready for deliveries, the first flight tests with a pilot are expected to occur later this year. By 2025, Lilium plans to launch commercial flights in Europe.
Last month, Lilium signed a binding purchase agreement with eVolare, a helicopter and private jet operating giant in the UK, to sell four of its Lilium Jets. The German aircraft maker has also received 20 flying vehicle orders from UrbanLink. UrbanLink, a Florida based air mobility company, hopes to provide aerial transportation service beginning in 2026. Although Lilium is still in a very early stage, given its extensive partnerships and technology, investors should feel optimistic about this flying car stock.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) has already made a name for itself in the flying car market.
In the past two years, Joby has already sealed two major $400 million and $60 million investments from Toyota Motors and Delta Air Lines respectively. Next year, as part of the previously signed $131 million contract with the Department of Defense, Joby will deliver two eVTOL aircraft to the U.S. Air Force. This will help Joby continue and strengthen its partnership with the U.S. Air Force, a reliable customer who has already received Joby aircrafts for Edwards Air Force Base in California in 2023.
The firm has completed pre-production flight tests, and has now moved into the production prototype phase, signaling a step closer to sales to customers. Starting as early as next year, Joby could start operations and launch air taxi services in the UAE. The company has already signed an agreement with Dubai’s Road and Transport Authority.
EHang (EH)
EHang (NASDAQ:EH) is a leading urban air mobility technology company. This Chinese aircraft manufacturer is not as large as some of its major competitors. However, EHang still remains competitive in the emerging flying car market with its innovative technology and guinness model. Its business is not confined to eVTOL development, but also extends to aerial media service and logistics.
Recently, EHang secured a production certificate from the Civil Aviation Administration of China. This signals a major step towards mass production of its pilotless eVTOL aircraft model EH216-S as it has been verified that EHang has met its regulatory requirements. This marks a milestone as the agency grants its first certificate in the international eVTOL industry.
Morgan Stanley analysts feel bullish about EHang’s future, setting its price target to $27.50 per share from its current price that’s below $16 per share. Moreover, Morgan Stanley gave EHang stock an overweight, indicating that EHang is one of the best flying car stocks buy.
On the date of publication, Andy Kim 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.
