It is not too often that investors witness the birth of a new industry. Aviation, however, is on the cusp of transformation. Electric vertical takeoff and landing (eVTOL) aircraft are poised to take over taxiing people on short-haul flights.
While we are still years away from seeing electric commercial airliners, what are essentially flying cars can electrify shorter-distance routes that comprise most flights. According to Statista, a regional airline’s average distance is about 500 miles. Ferrying passengers from airports to nearby metropolitan areas in electric flying cars is about to become a reality.
Because eVTOL manufacturers have the technology, financial backing, and soon the regulatory approval to launch their businesses commercially, the burgeoning demand for regional air mobility options is about to explode.
As this is a whole new industry being literally built from the ground up, investors have a unique opportunity to be present at the start. Below are the three best flying car stocks to buy right now.
Joby Aviation (JOBY)
U.S. eVTOL leader Joby Aviation (NYSE:JOBY) is currently furthest along in the regulatory approval process. It remains on track to receive Federal Aviation Administration approval to begin commercial operations next year.
Not only is Joby developing all-electric aircraft, but it has also recently completed a 523-mile flight in a dual hydrogen-electric aircraft. Like hydrogen fuel-cell car manufacturers, the only byproduct of Joby’s demonstration aircraft is water. It brings the goal of “green” air travel one step closer.
Earlier this year, Joby was the first eVTOL manufacturer to complete three of the five stages necessary for FAA certification. The fourth stage is to have every aspect of its eVTOL aircraft certified. Its all-electric flying car is designed to carry a pilot and four passengers at up to 200 mph speeds. These aircraft can fly about 150 miles on a single charge.
Joby is working with Delta Air Lines (NYSE:DAL) to operate a robotaxi service out of Delta’s hubs at John F. Kennedy International Airport, LaGuardia International Airport, and Los Angeles International Airport.
Joby Aviation stock currently trades at around $5 a share. It had recently been as high as almost $8.50 a share but tumbled hard after earnings, which was not unexpected. JOBY will be volatile as a speculative investment, but as the leader in the nascent eVTOL industry, it is one of the best flying car stocks to buy.
Archer Aviation (ACHR)
Right on Joby’s heels is Archer Aviation (NYSE:ACHR), the second eVTOL stock rapidly advancing toward commercialization in 2025. Like Joby stock, Archer’s shares fell hard last week as investors grew nervous about tech stocks. It is a short-sighted view that throws the baby out with the bathwater. Yet, it creates opportunities for far-sighted investors looking for stocks that will offer large returns in the years to come.
Archer Aviation is also developing eVTOL aircraft for regional air mobility purposes. In June, it received its Part 135 Air Carrier & Operator Certificate from the FAA, which allows it to fly for commercial purposes when it completes the five-stage process. Joby is the only other eVTOL manufacturer to receive Part 135 certification, which it received in 2022.
The flying car company’s Midnight aircraft seeks to fill very short commutes. Instead of driving 60 minutes or more, passengers would be able to take 20-minute flights. It can carry up to six passengers.
Archer recently achieved its first transition flight, which is when an aircraft takes off vertically and tilts its propellers forward to move ahead like an airplane before landing vertically. The craft achieved speeds of over 100 mph.
Automaker Stellantis (NYSE:STLA) is helping to finance Archer’s manufacturing facility expansion, and it has orders for hundreds of aircraft from United Air Lines (NASDAQ:UAL), India’s Interglobe and United Arab Emirate’s Air Chateau.
Notably, the UAE will allow Archer to begin its air taxi service immediately after receiving FAA certification. This is one reason why I think Archer Aviation is one of the best flying car stocks to buy.
EHang Holdings (EH)
Chinese eVTOL stock EHang Holdings (NASDAQ:EH) is also racing toward flight certification in that country. However, rather than a piloted aircraft, EHang is developing pilotless ones.
It recently flew passengers for a sightseeing trip in a demonstration flight in China’s Zhejiang province. It has flown many such demonstration flights under a temporary license it was granted, though it has not yet received formal permission to launch commercially.
EHang has an agreement with China Southern Airlines to operate EHang’s EH216-S eVTOL aircraft in the Zhuhai region. Wencheng County Transportation Development Group has delivered 27 EH216-S craft for use in Zhejiang. Last week, it delivered an additional 10 aircraft to Taiyuan Xishan Ecological Tourism Investment Construction.
Beyond operating in China, EHang also has global ambitions. It offered test flights in Abu Dhabi, Saudi Arabia, Spain, and elsewhere. As the robotaxi company is set to tap into what could be a multi-trillion renminbi market, it is one of the best flying car stocks for your portfolio.
On the date of publication, Rich Duprey 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.
