Some people think the electric vehicle (EV) market has had its time. The big names are bleeding cash, and the industry is getting battered by policy shifts and lower sales. Investors feeling a wind of change are making the switch to consider the more futuristic sector of flying car stocks.
Flying cars are a new and exciting facet of technology with the potential to revolutionize transportation globally. The industry is expected to grow at a 48% CAGR between now and 2033. Should things go to plan, early investors will be very happy.
So, now let’s focus on flying car stocks that Wall Street thinks are a good buy.
Archer Aviation Inc. (ACHR)
One of the strongest players in the air-taxi business, Archer Aviation Inc. (NYSE:ACHR), is an electronic VTOL developer and designer. It owns the production aircraft called Midnight. It will transport up to four passengers up to 100 miles at a maximum speed of 150 mph.
Recently, the company announced its successful battery pack drop test, a milestone for the Midnight program. Also, the program is set to take a similar credit testing with the Federal Aviation Administration (FAA). Additionally, ACHR signed a framework agreement with Abu Dhabi. It will operate its air taxi services and accelerate commercial air taxi operations across the UAE.
Moreover, Archer Aviation Inc.’s full-year report highlighted significant progress in operations and certification program for Midnight. The craft is set to launch in 2025. Chief Executive Officer (CEO) Adam Goldstein highlighted that the company is now in the final phase of its certification program. It’s taken the necessary steps to de-risk certification by shifting most of the parts’ sourcing process from reputable aerospace suppliers.
Also, the company has confirmed three Midnight aircraft are underway for their flight test program. I will rapidly increase the progress of their testing program and potentially complete 400 test flights in 2024.
Finally, ACHR boasts a strong liquidity position with a $625 million cash balance by the end of Q4 of 2023. This highlights its prudence in managing its cash. Wall Street analysts agree, issuing ACHR stock a strong buy rating.
Lilium NV (LILM)
Known for its Lilium Jet, Lilium NV (NASDAQ:LILM) is a German aviation company. It specializes in electric vertical takeoff and landing (eVTOL) aircraft. The company’s Lilium Jet is a seven-seater electric jet aircraft based on its pioneering architecture and Ducted Electric Vectored Thrust (DEVT) technology.
DEVT comprises fans mounted on cylindrical ducts that help propel the Lilium Jet. Recently, the company announced that it will unveil its full-scale Lilium Jet model for the first time at EBACE2024.
According to its latest shareholder update, the company has secured the European Union Aviation Safety Agency’s (EASA) design organizational approval. This marks a significant milestone for LILM. The approval highlights Lilium NV as the first company to qualify for a full-type certificate under EASA’s SC-VTOL rules. This further underscores continued progress toward commercialization.
Additionally, Lilium NV announced the establishment of Lilium POWER-ON, an industry’s inaugural Aftermarket Service Business that could generate significant recurring revenue by 2035.
No wonder Wall Street sees the company as a buy.
Eve Holding (EVEX)
Eve Holding (NYSE:EVEX) develops air mobility solutions. Their crafts are intended to carry passengers or cargo in urban and suburban areas to evade traffic congestion.
Eve Holding’s full-year report showed significant milestones for the company. Throughout the year, Eve Holding was able to finalize eVTOL’s architecture, which would feature a Lift + Cruise configuration that would increase performance and safety. Also, the company announced the commencement of a full-scale prototype production of eVTOL. In addition, it has begun the certification process with Brazilian aviation authorities, expects a potential dual certification with the FAA and aims to enter into service by 2026.
The company reported a net loss in fiscal year 2023, driven by increased R&D expenses that would support accelerating its eVTOL final design.
Unsurprisingly, Wall Street rates EVEX stock a buy, with a potential price return of 72% in the next 12 months despite negative profits. So, if you want to monitor the development of urban air mobility, don’t scratch EVEX off your list – at least not yet.
On the date of publication, Rick Orford 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.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.