Cars could soon take to the skies, creating a potential $3.8 billion market by 2035 for some of the world’s top flying car stocks. By 2040, we could be looking at a massive $1.5 trillion market, even $2.9 trillion, according to Morgan Stanley. While flying cars aren’t being sold just yet, pre-orders are starting to take flight.
Alef Aeronautics, for example, just said it received 2,500 pre-orders for its two-seater flying car, the Alef Model A. And while you can pre-order your own for a down-payment of $150, once the cars go on sale, it’ll cost you a cool $300,000 at launch in 2025.
Even XPeng (NYSE:XPEV) will start taking orders for its AeroHT flying car later this year, with deliveries expected by late 2025. According to Nikkei Asia, “Dubbed the Land Aircraft Carrier, the modular vehicle consists of two segments: a flying module for low-altitude transport and a six-wheeled module for use on the ground, according to the company. The vehicle will first be sold in China for more than 1 million yuan ($140,000).”
That being said, investors may want to jump into flying car stocks before they take flight.
Joby Aviation (JOBY)
Electric vertical takeoff and landing (eVTOL) company, Joby Aviation (NYSE:JOBY) has attracted a good deal of interest as it works toward commercial launch by 2025.
It’s also working with NASA to bring eVTOLs to some of the country’s busiest airports. It just announced a deal with Dubai that gives Joby the exclusive right to operate air taxis there for six years. And it just completed the third of five stages of the Federal Aviation Administration-type certification process. We also have to consider that a successful launch of flying taxis could expose the company to a potential $14.9 billion global flying taxi market by 2032.
Plus, earnings have been impressive. In its fourth quarter, JOBY posted a loss of 17 cents, which beat estimates by two cents. Revenues of $1.03 million beat expectations by $300,000. Also, at the end of 2023, JOBY had $1 billion in cash and short-term investments.
Archer Aviation (ACHR)
Another one of the top flying car stocks is Archer Aviation (NYSE:ACHR), which is starting to show big signs of life again. After slipping from about $5.55 to about $4, it’s now back up to $5.10. From here, if it can break above resistance around $5.68, it could rally to $6.50.
Helping, Stellantis (NYSE:STLA) just bought another $15.63 million worth of Archer Aviation stock. Even better, Stellantis agreed to manufacture Archer’s eVTOL Midnight aircraft, which is now in its final phase of its certification program and will be ready for launch by 2025. Stellantis CEO, Carlos Tavares, added:
“Deepening our partnership with Archer as a strategic investor with plans for growing our shareholding demonstrates how Stellantis is pushing the boundaries to provide sustainable freedom of mobility, from the road to the sky.”
Even more exciting, Archer signed a Space Act Agreement with NASA.
With the initial collaboration, the two will study “high-performance battery cells and safety testing targeted for Advanced Air Mobility and space applications,” says Seeking Alpha. “NASA’s goal with the project is to test Archer Aviation’s battery cell and system design and share the results to push the entire Advanced Air Mobility industry forward.”
Smart ETFs Smart Transportation & Technology ETF (MOTO)
Or, if you’d prefer to diversify with transportation and tech stocks — at a low cost — there’s always an exchange-traded fund (ETF) like the Smart ETFs Smart Transportation & Technology ETF (NYSEARCA:MOTO). With a net expense ratio of 0.68%, the ETF invests in companies that will benefit from the revolution in transportation. According to SmartETFs.com, that includes:
“Companies that manufacture, distribute, service, offer, support, or enable the following: electric vehicles, autonomous vehicles, transportation as a service, flying autonomous vehicles, autonomous or electric public transportation and hyperloop-based transportation, for passengers or goods.”
Some of its top holdings include Nvidia (NASDAQ:NVDA), Eaton (NYSE:ETN), Tesla (NASDAQ:TSLA) and ON Semiconductor (NASDAQ:ON), to name a few.
With MOTO, you may want to wait for pullbacks to buy. After rocketing from a low of about $35 to $43.62, the MOTO ETF appears technically overbought at triple-top dating back to July 2023. It’s also a bit over-extended on RSI, MACD and Williams’ %R. In fact, if you pull up a two-year chart of MOTO, you can see that each time these three indicators get this overbought at the same time, the ETF pivots lower.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
