It is difficult to find a more challenging market than the flying cars market. Not only do rigorous technical challenges have to be solved for electrical vertical take-off and landing (eVTOL) vehicles to be viable, but the regulatory framework has to be in sync to facilitate growth, making it essential to identify the right flying car stocks to buy.
So far, China is way ahead of this game in both arenas. After the milestone of approving AutoFlight’s autonomous CarryAll for over-one-ton flights, EHang’s (NASDAQ:EH) EH216-S received approval for mass production as autonomous flying taxis.
According to Market Research Future, this market could exhibit 43.70% CAGR between 2022 and 2030. But which are the best flying car stocks to buy? These companies have shown steady progress in meeting regulatory requirements while deploying scalable flying car tech.
Lilium (LILM)
Lilium (NASDAQ:LILM) is an exposure to German engineering as the company fills the demand for Regional Air Mobility (RAM) in the European Union. As of June, Lilium has an order backlog of 780 aircraft. The company’s flagship product is Lilium Jet, featuring fixed wings with electric engine flaps capable of delivering 640 kg maximum weight at 300 km range.
In the densely populated E.U., these specs have already attracted the partnership of French Aéroports de la Côte d’Azur and UrbanV, as the vertiport network developer across the E.U. but mainly in Italy and France at present time. To secure funding, Lilium recently raised $114 million, with a potential for guarantee-backed loans from French and German governments.
Given that the E.U. suffers from notorious regulatory parasitism and there are no comparable (publicly traded) urban air mobility (UAM) companies at this point in time, it is likely that Lilium will become the most prominent player. Moreover, seeing the regulatory-friendly regime in China, Lilium had already launched a legal entity in Shenzhen to establish a regional presence as the first European eVTOL company.
Year-to-date, LILM stock is down 32%. At its highest 52-week point, LILM shares were priced at $1.90, significantly over the current price of $0.80 per share. This price level is lower than the 52-week average of $1.00, suggesting a bottom range from which to pick this flying stock exposure.
Joby Aviation (JOBY)
After becoming the first eVTOL company to complete the FAA’s three levels of certification, Joby Aviation (NYSE:JOBY) landed exclusive rights to operate air taxis in Dubai for six years. From February to April, this expanded to a multilateral agreement with three Abu Dhabi government departments to establish an air taxi ecosystem in the UAE.
The reason these wealthy fintech hubs picked Joby is because of its wide collaboration within the U.S. aerospace sector and government agencies. Case in point, with the U.S. Air Force, the company is to deliver up to nine eVTOLs through the AFWERX Agility Prime program.
Taking over Uber’s (NYSE:UBER) Elevate air taxi division with a $75 million Uber investment in late 2020, Joby further boosted its human capital to deliver on the UAM promise. The company sees 2024 as the completion of certification and manufacturing, while the commercial stage will be reserved for 2025.
To catch up with China, Joby acquired Xwing in June to bolster its autonomous aviation chops. In the same month, the company received FAA’s authorization for its ElevateOS software suite to operate on-demand air taxis, having been tested since the acquisition of Uber Elevate in 2021.
In other words, Joby Aviation is covering all of the angles, making it one of the most serious flying car stocks to buy. Year-to-date, JOBY stock is down 23%. At the present price of $5.10, JOBY shares are closely aligned with the 52-week low of $4.50, well under the 52-week average price of $6.22 per share.
Hyundai Motor Group (HYMTF)
For investors looking for flying car stocks to buy, but Boeing (NYSE:BA) is too shady, Hyundai Motor Group (OTCMKTS:HYMTF) comes as a safe bet. As one of the leading legacy automakers, Hyundai has been on a roll with its EV IONIQ series alongside the TUCSON hybrid.
In 2023, the Korean giant sold 4.2 million units, with a heavy presence in North America and Europe. In fact, the company surpassed Volkswagen Group’s (OTCMKTS:VLKAF) operating profit for the first time in Q1 2024, at $5.09 billion vs. $4.94 billion, respectively.
With a proven track record of innovation and scaling, Hyundai’s Advanced Air Mobility (AAM) company Supernal unveiled the S-A2 concept at CES 2024. The eVTOL is an upgrade from S1-A1 shown in 2020, capable of carrying four passengers plus the pilot.
While its commercial deployment is targeted for 2028, Hyundai shareholders don’t have to worry about funding holes and cash bleeds, as is the case with most flying car companies. Year-to-date, HYMTF stock is up 55%, greatly outperforming the broader market.
On the date of publication, Shane Neagle 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.
