Companies operating in the electric vertical takeoff and landing (eVTOL) market are often known as flying car stocks. Whether these companies are looked at as futuristic Jetsons-like options, or the air taxis of the future of transportation, it really doesn’t matter. The underlying tech sported by the companies on this list is impressive. And it’s true that the future of transportation may be due for a major shakeup.

The three flying car stocks on this list stand to disrupt urban mobility for good. As urbanization rises, the $1.5 billion market is expected to continue to grow significantly over time. That’s as advancements in electric propulsion, regulatory changes, and investments from automakers and aerospace firms continue.

With a projected 20% CAGR, the sector is driven by smart city initiatives, traffic congestion solutions and emerging technologies. So, for those looking for exposure to this mega trend, here are three companies to consider right now.

Archer Aviation (ACHR)

Archer Aviation (NYSE:ACHR) stands out with its “capital light” approach to developing its Midnight eVTOL. And the company enjoys a partnership with Stellantis (NYSE:STLA). This collaboration, supports Midnight’s production and potential commercial launch next year, giving Archer a competitive edge.

Indeed, I think being first to market is going to be a big deal in the eVTOL race. And while Archer does face significant short interest, there’s clear retail investor interest in this stock. I’m not saying a short squeeze is imminent by any stretch of the imagination. But with FAA approval expected next year and strong backing from United Airlines (NASDAQ:UAL) and Stellantis, Archer is poised for substantial growth, particularly if short sellers get out of the way.

Moreover, Southwest Airlines (NYSE:LUV) recently partnered with Archer Aviation to develop an air taxi service using Archer’s Midnight eVTOL aircraft. This agreement grants Archer access to 14 California airports where Southwest operates. The deal highlights increasing confidence in urban air mobility, with Archer’s aircraft aiming to cut travel times from 60–90 minutes by car to 10–20 minutes.

Joby Aviation (JOBY)

Joby Aviation’s (NYSE:JOBY) stock rose from $5 per share to $7.50 after announcing a successful 523-mile hydrogen-electric flight. Though promising long-term, some analysts and investors currently consider JOBY stock to be overbought. That’s despite the company receiving $400 million in backing from Toyota (NYSE:TM), and a $131 million contract with the U.S Air Force. The company also has exclusive air taxi rights in Dubai and is partnering with Aero Asahi in Japan.

Joby Aviation plans to establish take-off points in London and Northern England. The aim is for a U.K. launch before the decade’s end. CEO JoeBen Bevirt said the company will soon engage with local communities and real estate owners to support its electric vertical take-off and landing (eVTOL) vehicles. Joby is enthusiastic about the U.K. market, noting long travel times and limited high-speed rail in Northern areas.

Joby Aviation has delivered one aircraft to the U.S. Air Force and is scaling up manufacturing. With $924 million in cash, the company can fund its plans despite near-term losses. Having public rides by 2025 could boost investor confidence and stock performance, making JOBY one of the promising flying car stocks to consider.

EHang Holdings (EH)

EHang Holdings (NASDAQ:EH) is on this list of top flying car stocks despite a 30% year-to-date decline for the Chinese eVTOL maker. The recent approval of its pilotless eVTOL by China’s Civil Aviation Administration sets the stage for growth. With its EH216-S already approved for mass production and international demos in various countries, EHang is well-positioned for future expansion.

Recently, EHang Holdings delivered 10 EH216-S pilotless eVTOLs to Xishan Tourism in Q2. The inaugural passenger flights in Taiyuan occurred on July 28, 2024, marking a milestone for Shanxi’s low-altitude economy.

At Taiyuan’s Paddy Field Park, EHang’s ceremony featured two EH216-S eVTOLs carrying passengers for a scenic flight. The event highlighted the EH216-S’s autonomous capabilities and safety, while also showcasing EHang’s VT-30, EH216-F and EH216-L models for long-range, firefighting and logistics uses, respectively.

On the date of publication, Chris MacDonald 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.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.