Flying car stocks offer a remarkably more attractive avenue than traditional electric vehicles (EVs).
While the EV market is experiencing a slowdown, the emerging electric vertical takeoff and landing (eVTOL) sector shines as a promising investment alternative. EV pioneer Tesla’s (NASDAQ:TSLA) recent woes underscore the sector-wide challenges as it continues losing ground.
Conversely, eVTOL stocks continue to draw attention with their innovative approaches to urban mobility. Moreover, these companies are set to commercialize their flying vehicles by next year, making it an opportune time to pounce on them. Additionally, with interest rate cuts looming, these stocks are in position for a sharp snapback, offering superb upside potential ahead.
Therefore, let’s dive deeper into these three best flying car stocks to buy. These usual suspects in the eVTOL space continue to prove their mettle and are trading at attractive levels ahead of a likely bull run.
Joby Aviation (JOBY)
Despite trading more than 38% behind its 52-week highs, Joby Aviation (NYSE:JOBY) remains a beacon of innovation in the eVTOL sector. On the operational front, things have never been better as it marches towards commercialization next year.
It has successfully completed its pre-production flight test program and is now involved in for-credit flight testing. If it can achieve that feat, JOBY will be on course to realize stage 4 certification with the Federal Register.
Furthermore, Joby Aviation has made pertinent strategic moves to separate itself from the pack. It recently acquired Xwing, a leader in autonomous aviation technology, amplifying its market potential. Xwing boasts a superb track record of more than 250 fully autonomous flights and upwards of 500 auto-landings. Moreover, JOBY has already bagged a Federal Aviation Administration (FAA) certification for its prototypes. Further, it operates a massive production facility in California, that could potentially deliver 25 aircraft annually.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) is another top player in the eVTOL space for investors seeking multi-bagger returns.
Unlike its peers, the company has already commercialized its eVTOL and will experience a rapid acceleration in order flow. The firm received mass production clearance for its EH216-S eVTOL from the Civil Aviation Administration of China. Moreover, it has garnered a significant contract for 50 units from Xishan Tourism and an additional 450 units over the next two years. Moreover, the EH216-S trades at a retail price of US$410,000, helping EH generate $112.3 million by next year.
Furthermore, EHang Holdings is intensifying its global presence, expanding into international markets including UAE, Spain, Costa Rica and Japan as of Q1 of 2024. This aggressive international expansion effectively diversifies EHang Holding’s operational footprint while enhancing its global exposure and appeal in burgeoning aviation markets. Also, EHANG stock is an excellent buy at current levels, having shed 15% of its value last year.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is another exciting play at the burgeoning flying car space, positioning itself for robust long-term growth.
Recently, the firm received a certification from the FAA to operate as a commercial airline. This massive breakthrough is essentially part of ACHR’s broader global strategy, with plans in motion to disrupt markets in the UAE, India and Korea by 2026. Moreover, the firm is nearing the completion of its high-volume manufacturing facility in Georgia, which could produce 650 eVTOLs annually by 2024.
Additionally, the firm has the backing of prolific car maker Stellantis (NYSE:STLA), which recently raised its stake in Archer with an additional $55 million. This collaboration will leverage Stellantis’ manufacturing technology and expertise to build on Archer Aviation’s eVTOL design and production capabilities. Also, in the past month, ACHR stock is up double-digits on the back of a new deal with Southwest Airlines (NYSE:LUV). Through this partnership, both companies aim to build operational plans for electric air taxi networks at key California airports.
On the date of publication, Muslim Farooque 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
