The market potential is vast, with estimates suggesting it could become a trillion-dollar industry by 2040, encompassing not only personal transportation but also sectors like tourism, defense, and logistics €‹.
Investors interested in the next big leap in transportation technology might find substantial opportunities in this emerging sector. As flying cars transition from prototypes to commercially viable products, early adopters could see significant returns on their investments €‹.
So for this article, I’ve put together a list of three of the most promising flying car stocks for investors to consider this month. A $10,000 investment could provide a very sizable return for investors, due to how quickly the industry is expected to grow over the next few years, and the fact that these companies could trade at undervalued levels.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is the first of the best flying car stocks for investors this month. I think that ACHR has great potential to be a company to deliver substantial returns for investors.
It aims to deploy 6,000 vehicles by 2030. The company has partnered with Stellantis to manufacture its eVTOL Midnight aircraft, which is approaching the final phase of its certification program, indicating its readiness for a commercial launch in 2025.
Financially, Archer Aviation is navigating its development phase with significant investments in the Midnight aircraft. The company has outlined its operational and financial strategy for 2024, projecting GAAP total operating expenses to be between $100 million and $120 million.
Furthermore, there has been some bullish coverage initiated by analysts about ACHR last year. The analyst was Edison Yu of Deutsche Bank, who reiterated a $12 price target for ACHR. This gives it a huge implied upside from its current level of $3.50.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is a standout name in the flying car industry and should be on your watchlist. Enthusiasts in this field frequently mention JOBY as a key player, and is often cited as one of the best eVTOLs for investors to put their money into due to some promising developments in the industry.
Although JOBY hasn’t generated revenue or reported earnings recently, it ended the year with $1.1 billion in cash. The company’s strategic focus includes significantly reducing travel times, such as cutting commutes between John F. Kennedy Airport and nearby areas from 1 hour to 7 minutes. This then makes it one of the best flying car stocks to buy.
Meanwhile, Archer Aviation and Joby Aviation have announced significant plans for urban air mobility in the San Francisco Bay Area, Joby has acquired Xwing’s autonomy division to enhance its autonomous flight capabilities. It also received FAA approval for its ElevateOS software, which includes various operational and passenger apps.
EHang (EH)
EHang (NASDAQ:EH) is a prominent player in the autonomous aerial vehicle industry, known for its innovative development of flying cars and drone technology. Although EH stock has courted some controversy over the past couple of years, it’s still in a strong position to deliver substantial returns.
EH has one of the lowest valuations out of all the flying car stocks in this article, which should make it particularly attractive for investors.
EH has made significant strides, including a partnership with DHL-Sinotrans to explore the use of the EH216 flying car for delivery services. Additionally, EH has signed a memorandum of understanding with the Bao’an district government in China to support the assembly and delivery of EH216-S autonomous aerial vehicles. In Q3 of last year, EH delivered 13 aircraft.
The financial outlook for EH is promising, with projections suggesting an average stock price of $72.87 by 2025, a substantial increase from its current valuation of approximately $14.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.