As urban congestion continues to escalate, the concept of flying cars transitions from the realm of science fiction to a tangible solution. The burgeoning industry of aerial vehicles, particularly electric vertical take-off and landing models, stands on the cusp of revolutionizing transportation. These vehicles promise to offer a swift, efficient alternative to traditional road travel. Also, these flying car stocks promise solid returns.
The global flying car market is projected to expand from from $0.60 billion in 2023 to $10.89 billion by 2031. It will grow at a CAGR of 37.2%. Key drivers for growth include rapid urbanization, technological advancements, rising demand for faster transportation, and emerging regulatory frameworks.
This emerging sector not only captivates the imagination but also presents a unique investment frontier. It does so for those looking to capitalize on early-stage innovations. As 2024 unfolds, here are three flying car stocks to buy. These companies merit the attention of forward-thinking investors. These stocks represent what could be the future of urban mobility.
Top Flying Car Stocks: EHang (EH)
EHang (NASDAQ:EH) has rapidly positioned itself as a leader in the development of electric Vertical Take-Off and Landing (eVTOL) aircraft, which are essentially flying cars designed for urban air mobility. EH is setting the stage for an ambitious expansion of its production capabilities and market presence. The company recently announced plans to raise up to $100 million through a public offering.
The company’s flagship model, the EH216-S, is designed to cater to a variety of applications, including air mobility, logistics, firefighting, and aerial photography.
EHang’s financials reflect its strategic expansions and the growing market acceptance of its technology. In 2023, the company reported a 165% jump in revenue, reaching 117 million yuan, significantly up from the previous year. This surge in revenue is attributed to an increase in deliveries of the EH216 series, with 52 vehicles shipped during the year.
The company’s recent regulatory successes have also bolstered investor confidence. Last year, EHang received a critical “type certificate” from China’s aviation regulator for the EH216-S, followed by a production certificate allowing for mass production. These certifications are crucial as they pave the way for commercial sales and the expansion of EHang’s operational capabilities.
Joby Aviation (JOBY)
Founded with the vision of making air travel a daily part of life, Joby Aviation (NYSE:JOBY) has been at the forefront of eVTOL development.
Joby Aviation’s aircraft are designed to be quiet, efficient, and fast, capable of speeds up to 200 miles per hour with a range of over 150 miles on a single charge. This makes them ideal for short-haul trips in urban areas.
Strategic partnerships have been instrumental in Joby’s developmental strides. Collaborations with major players like Toyota and recent alliances with Atlantic Aviation to electrify sites in New York and Southern California are paving the way for the practical deployment of its air taxi services.
Joby reported a positive first quarter in 2024. The company announced an EPS of -$0.14, which exceeded expectations by $0.03. Moreover, the revenue of $25,000 also surpassed analysts’ forecasts. Management during the earnings call reported that the company is making significant progress in FAA certification stages and has started producing aircraft under their new production line. This line is essential for achieving FAA production certification.
XPeng (XPEV)
XPeng (NYSE:XPEV) has expanded its portfolio to include not just electric vehicles but also ambitious projects in the realm of flying cars. A subsidiary of XPeng, XPeng AeroHT, is at the forefront of this innovative endeavor.
One of the key projects under XPeng AeroHT is the XPeng X2 flying car. The X2 is a two-seater eVTOL aircraft that features eight propellers arranged in pairs across four arms, enabling it to take off and land vertically like a helicopter. This design eliminates the need for runways, making it suitable for urban environments where space is limited.
XPeng reported its Q4 2023 results in March. The company posted a Q4 EPS of -$0.28, which was better than what the market expected. Moreover, the company’s revenues for the quarter stood at $1.81 billion, marking a 142.90% increase year-over-year.
XPeng’s stock is down 45% year-to-date. However, analysts remain bullish and have an average price target of $13.9 on the stock. This presents a potential 80.5% upside in the near term.
On the date of publication, Mohammed Saqib 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.
