While everyone loves waxing poetic about the future of mobility being electric, it’s time to expand this discussion with flying cars stocks. To be sure, roadgoing electric vehicles may represent the mainstay of personal transportation. However, as major metropolitan areas grow, it’s never been more important to consider the vertical realm.
For starters, investors should buy on dips flying cars stocks because of the tremendous projected opportunity. According to SNS Insider, the flying car market reached a humble valuation of only $86 million in 2022. However, experts believe that the sector could skyrocket to $1.06 billion by 2030, representing a gargantuan compound annual growth rate (CAGR) of 36% from 2023.
Another factor to consider is the positive impact that the underlying sector can generate. In a 2019 CNN report, commuters wasted an average of 54 hours a year sitting in traffic. For business executives that would presumably take advantage of this vertical transportation platform, time is money. Thus, it may be incredibly lucrative to invest in flying cars stocks.
Archer Aviation (ACHR)
Specializing in electric vertical takeoff and landing (eVTOL) aircraft for use in urban air mobility, Archer Aviation (NYSE:ACHR) ranks among the promising ideas for flying cars stocks. Since the start of the year, ACHR gained 213% of equity value. It’s a wild mover, though, as demonstrated by its one-year return of less than 33%.
Put another way, after more than tripling in value in 2023, ACHR only managed to produce a decent net gain for a tech innovator. Still, enthusiasm runs hot for Archer. According to data from TipRanks, analysts peg ACHR as a consensus strong buy. This assessment breaks down as four buys, one hold and zero sells. Also, the experts’ average price target lands at $7.90, implying nearly 31% upside potential.
That’s the good news. The not-so-encouraging component centers on its profitability picture. As a pre-revenue enterprise with a retained loss of $804 million, Archer has a long way to credibility. Still, the company does enjoy a cash-to-debt ratio of 23.8X. Thus, speculators who want to invest in flying cars stocks might check it out.
Blade Air Mobility (BLDE)
Billed as a technology-powered, global air mobility platform, Blade Air Mobility (NASDAQ:BLDE) focuses on reducing travel friction. To do this, management seeks to provide cost-effective air transportation alternatives to some of the most congested ground routes in the U.S. and abroad, per the corporate profile. While BLDE might be considered an idea for buy on dips flying cars stocks, prospective participants should be prepared for volatility.
Over the trailing one-year period, BLDE fell nearly 36%. Also, since making its public market debut, BLDE gave up almost 60% of equity value. Still, since the start of this year, shares gained over 16%. Therefore, Blade could be on the move considering reinvigorated interest in flying cars stocks. Looking to the Street, analysts peg BLDE as a consensus moderate buy. Moreover, their average price target clocks in at $9.50, over 141% upside potential.
Still, BLDE is only for those who really want to invest in flying cars stocks. While Blade does generate revenue, profitability might be a while coming. Still, the enterprise does enjoy solid stability in the balance sheet.
Lilium (LILM)
Probably the highest-risk idea for buy on dips flying cars stocks, Lilium (NASDAQ:LILM) aims to create a sustainable and accessible mode of regional high-speed transportation. Specifically, it offers its Lilium Jet, an eVTOL craft that seats seven individuals. Further, the Jet features other compelling attributes, including high performance and low noise. Trading hands at a little over a buck, investors should be prepared for a wild ride with LILM.
Indeed, since the January opener, shares gained slightly over 4%. That might seem unremarkable from a magnitude perspective. However, in the trailing one-year period, shares crumbled 60%. And since making its public market debut, Lilium finds itself in the hole to the tune of roughly 89%.
However, even with the red-ink horror show, LILM carries a moderate buy consensus view among Wall Street analysts. Even more enticing, the average price target hits $3.33, implying over 164% upside potential. To be sure, Lilium suffers a long road to credibility. As another pre-revenue enterprise, speculators would be doing just that, speculating. Still, if your calling is to invest in flying cars stocks no matter the risk, LILM could be intriguing.
On the date of publication, Josh Enomoto 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.
