One of the most exciting times to invest is when an industry is at a nascent growth stage. Of course, the risk is high, but returns can be multi-fold in the blink of an eye. One such industry that looks promising is the global market for flying cars. Given investor attention and technological developments, flying car stocks have already been soaring.
However, with the idea still to be commercialized, the growth opportunity is big. One estimate indicates that the global flying car market is estimated to be worth $17.84 billion by 2030. I must add that this is likely to be the tip of the iceberg. Morgan Stanley estimates that the flying car market is likely to be worth $1.5 trillion by 2040.
With potentially decades of impending growth, it’s a good time to invest in some of the best flying car stocks.
Let’s discuss three flying car stocks to buy at current levels.
XPeng (XPEV)
XPeng (NYSE:XPEV) stock has corrected by 45% in the last 12 months. However, there has been a sharp reversal rally in the recent past from oversold levels. I believe that it’s still a good time to buy XPEV stock.
XPeng has been on a forefront of innovation when it comes to flying cars. In January, the company’s flying car unit, Xpeng Aeroht, received a special flight permit in China. The two-seater car is designed for low-altitude urban flight scenarios. Even prior to that, the company’s flying car completed its first test flight in Dubai in 2022.
It’s worth noting that XPeng has robust financial flexibility. As of Q1 2023, the company reported cash and equivalents of $4.97 billion. This gives the company high flexibility to invest in product development and innovation. As the market for flying cars expands, XPeng is positioned to benefit as an early mover.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) stock has skyrocketed by 140% in the last 12 months. I believe that EH stock will remain in an uptrend with positive business developments.
As an overview, EHang is an autonomous aerial vehicle technology platform company. The company has already developed its first passenger grade vehicle, which is certified with the Civil Aviation Administration of China.
The company believes that urban air mobility has a total addressable market of $9 trillion by 2050. If this holds true, EHang is positioned for decades of growth. A big positive is that the company has completed 90% of compliance tests. With the launch possible within the next 12 to 18 months, EH stock is positioned for further upside.
Another important point to note is that the company already claims to have global customers and partners. With an initial planned capacity of 600 units of autonomous aerial vehicle annually, the outlook is optimistic.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is another attractive name among flying car stocks. As the company progresses towards commercialization of the idea, JOBY stock has surged by almost 150% for year-to-date.
In 2020, Joby became the first company to receive airworthiness approval from the U.S. Air Force. Last year, the company’s pilot production lines were constructed. Further, in June, the company announced that it’s working “toward completing the third of five stages required to certify its aircraft for commercial use.” With these developments, it’s not surprising that JOBY stock has surged.
Joby is well positioned for commercialization from a financial perspective. As of Q1 2023, the company reported cash and equivalents of $978 million. Further, in May, the company raised $180 million through fresh issue of equity.
An important point to note is that Joby has $131 million in backlog from the Department of Defense. This contract will serve as a big validation for the company’s technology and product.
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.
