Some of the top strong buy flying car stocks could be the next big moneymakers.
We already know the flying car market could be worth about $215.5 million by 2025, according to Allied Market Research. By 2035, it could be worth well over $3.8 billion. By 2040, we could be looking at a massive $1.5 trillion market, even $2.9 trillion, according to Morgan Stanley.
Fueling excitement, XPeng’s (NYSE:XPEV) X2 flying car just took its first flight at the Beijing Daxing International Airport. As noted by TechTimes.com, the “flight marked a crucial milestone as AeroHT moves closer to commercializing its flying car amidst growing policy support for China’s burgeoning low-altitude economy.”
Plus, according to Delta (NYSE:DAL) Chief Executive Officer Ed Bastian says flying cars isn’t that far from reality. “I think over the next 10 years we’re going to see them,” says Bastian, as quoted by Inc., “But they’re not going to be taking the place of what we do. What they’re going to be taking the place of road traffic. They’re designed to go anywhere from 30 to 75 miles and airports are one of the drawing cards for that service.”
That being said, investors may want to consider picking up flying car stocks while cheap.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is one of the top strong buy flying car stocks to buy.
With a strong buy rating and a $7.63 target price, the flying car is showing big signs of life. Late last week, ACHR jumped about 18% on a volume spike to 31.4 million shares, compared to its daily average volume of 5.2 million. This was after the company announced its plans for a San Francisco air mobility network, which will connect five locations over the Bay area.
The plan is to replace one- to two-hour drives to cities around the area with flights that take about 10 to 20 minutes, the company said.
Even better, the company’s Archer Air just said it received its Part 135 Air Carrier & Operator Certificate from the Federal Aviation Administration (FAA) to operate vehicles commercially.
And while earnings haven’t been stellar just yet, give it time. Once the flying car market takes off, Archer Aviation should, too, along with its earnings.
XPeng (XPEV)
XPeng is also starting to take flight.
With a moderate buy rating and a price target of $11.08, the XPEV stock is starting to pivot higher. In fact, after finding support at $7.16, it’s now up to $7.87, where it’s a buy. From here, I’d like to see it initially retest $9.
Fueling upside, the company’s X2 just took its first flight at the Beijing Daxing International Airport, as noted above. Two, the company’s ultimate goal is to commercialize these flying cars by the end of the year. Three, China’s Guangzhou will invest more than $1.4 billion by 2027 in the “low-altitude economy” – or the flying car services that operate in airspace below regular commercial aviation, says Nikkei Asia.
In addition, company co-president Brian Gu says the XPEV flying car will be available for pre-orders this year, with potential delivery by 2026. Plus, analysts at Daiwa recently upgraded the XPEV stock to a buy rating with a price target of $11.
eHang Holdings (EH)
With a moderate buy rating and a $27.50 price target, eHang Holdings (NASDAQ:EH) is another solid bet on the flying car market. After catching support at $14.35, where it’s a buy, I’d like to see it rally back to $20 initially. Helping, Morgan Stanley just upgraded the stock with an overweight rating, with a $27.50 price target.
“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,” said the firm, as quoted by InvestorPlace.com.
Better, earnings have been solid. The company posted a 178% increase in year-over-year revenue in its first quarter and positive operating cash flow for the second consecutive quarter. Plus, Xishan Tourism ordered 50 EHang EH216-S pilotless electric vertical takeoff and landing aircraft from the company in late May for about $15.6 million.
On the date of publication, Ian Cooper did not have (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.
