eVTOL stock has remained relatively subdued in the last 12 months. I see this as a lull before the storm with some of the best eVTOL companies nearing commercialization.

An important point to note is that the flying car industry is at a nascent stage. Estimates suggest that the eVTOL market could be worth $1 trillion by 2040. If this holds true, there is significant room for growth in the coming decade(s).

From an investment perspective, the addressable market implies that there will be massive wealth creators among eVTOL stocks. It’s a matter of buying quality names and holding with patience.

In my view, the initial years after commercialization will be characterized by stellar top-line growth. At the same time, cash burn is likely to be significant. The winners will be companies that can boost profitability on operating leverage.

This column discusses three eVTOL stocks to buy that seem poised for robust growth and value creation.

Archer Aviation (ACHR)

Archer Aviation (NYSE:ACHR) stock looks attractive as the eVTOL company approaches commercialization. It’s worth noting that the renewed uptrend in ACHR stock has been impacted by broad market sentiments. I see this as a golden buying opportunity considering positive business developments.

The first positive to note is that Archer has strong industry partnerships. United Airlines (NYSE:UAL) is a partner and strategic investor. Recently, the company received $55 million in additional funding from Stellantis (NYSE:STLA). The flying car company has also partnered with Southwest Airlines (NYSE:LUV) for electric air taxi networks at California airports where Southwest operates.

In the international markets, Archer has stitched partnerships for expansion in the UAE, India, and Korea. Therefore, on commercialization of eVTOL, there is headroom for robust growth in the next few years.

I must add here that the company’s high-volume manufacturing facility is nearing completion. The company plans production in partnership with Stellantis of up to 650 Midnight aircrafts annually. This is likely to support healthy growth in 2025 and beyond.

EHang Holdings (EH)

EHang Holdings (NASDAQ:EH) stock has corrected by 42% in the last 12 months. While EH stock has trended lower, the business progress has been encouraging. I therefore believe that it’s a good buying opportunity.

Last month, the Civil Aviation Administration of China “formally accepted the Air Operator Certificate applications submitted by Guangdong EHang General Aviation.” Earlier this year, the CAAC had authorized EHang for mass production of its E216-S pilotless eVTOL. These developments pave way for aggressive expansion within China.

At the same time, EHang has expanded international partnerships with demo flights in Saudi Arabia, UAE, Spain, Costa Rica, and Japan. Recently, the company partnered with KC Smart Mobility for eVTOL sale and operations in Hong Kong and Macau.

Clearly, EHang is establishing a strong base for stellar growth in the next few years. For Q1 2024, revenue growth was 178% on a year-on-year basis to $8.5 million. I would not be surprised if top-line growth remains above 100% in the coming quarters.

Joby Aviation (JOBY)

Amidst high volatility, Joby Aviation (NYSE:JOBY) stock has declined by 23% for year-to-date. It’s however another eVTOL stock where I would look at buying in the current correction.

In terms of business developments, Joby claims to the first eVTOL company to have received their final airworthiness criteria published by the U.S. Federal Aviation Authority. With commercialization due in 2025, Joby is focused on scaling-up manufacturing. The company’s Ohio facility will be capable of producing up to 500 electric air taxis per year.

In June, Joby announced the acquisition of the autonomy division of Xwing. The latter has 250 fully autonomous flights and more than 500 auto-landings completed to date. This acquisition provides Joby a technological edge and is likely to support in building a deeper relation with the U.S. Department of Defense. With high financial flexibility and multiple positive developments, it’s a matter of time before JOBY stock surges higher.

On the date of publication, Faisal Humayun 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.