Flying cars have been on the futurism menu since the late 19th century. Although small airplanes with short lift distances were available, a small-sized vertical take-off has been the ultimate goal. These flying car stocks are at the forefront of the UAM drive!
After Xpeng’s X2 flying car received flight certification from the Civil Aviation Administration of China in February, a psychological barrier dissipated. The X2 from Xpeng seems to point at electric vertical take-off and landing (eVTOL) as the dominant model. It’s capable of a 35 minute flight time with 80 mph top speed, both in autonomous and manual drive mode. But other companies have been working on their own flying car approaches.
Here are three flying car stocks with late-stage research and development in this exciting sector.
Joby Aviation (JOBY)
The Federal Aviation Administration (FAA) has made it exceedingly difficult to cost-effectively operate aircraft in the U.S. Some see this as creating a great barrier to small, personal flights. Yet, this hasn’t discouraged Joby Aviation (NASDAQ:JOBY) to embark on a journey of innovation.
Also, investor confidence for JOBY is high. So much so that Uber (NYSE:UBER) offloaded its own air taxi project, Uber Elevate, to JOBY in December 2020. The investment was worth $75 million to aid Joby Aviation in creating an eVTOL passenger aircraft. Up to that point, JOBY raised $820 million, with Uber pitching in $125 million.
Moreover, Joby Aviation made an AFWERX Agility Prime contract with the Department of Defense (DOD) worth $131 million. In September 2023, Joby Aviation delivered its first eVTOL air taxi to the U.S. Air Force, as a logistics proof of concept. The company’s commercial launch is slated for 2025. Driven by this speculation, JOBY stock is up 36% over a one-year period.
However, with commercial rollout still far away, shares lost 15% of value year to date (YTD). Based on seven analysts’ insights pulled by Nasdaq, average JOBY price target is $7 compared to current $5.2 per share.
Lilium (LILM)
Based in Germany, Lilium N.V. (NASDAQ:LILM) has made great progress in developing high-speed passenger aircraft. Its Lilium Jet is another eVTOL, but with fixed wings that allow for efficient cruise flight of up to 175 mph and low noise profile. Introducing ducted fans and variable nozzles, Lilium Jet is capable of carrying six passengers up to 155 miles.
In February, the company unveiled Lilium POWER-ON, the first eVTOL customer service organization, in an effort to scale up business for future growth. Both the European Union Aviation Safety Agency (EASA) and the Federal Aviation Administration (FAA) granted Lilium prerequisite certifications for commercial rollout. In the case of the FAA, this was the G-1 Certification Basis.
The Lilium Jet is slated for commercial launch in early 2026. Over a one-year period, LILM stock is up 18%, while down 16% YTD. Based on seven analysts’ insights pulled by Nasdaq, the average LILM price target is $3 versus a current $0.9 per share.
Archer Aviation (ACHR)
In February 2021, Archer Aviation (NASDAQ:ACHR) became the first Urban Air Mobility (UAM) company to become publicly listed. Based in Palo Alto, as a part of the decarbonization drive, Archer partnered with United Airlines in a deal worth $1 billion. And, an additional $500 million order of Archer’s aircraft covers regional hub zones.
In January, 2024, Archer partnered with Atlantic Aviation, via memorandum of understanding (MOU), to establish aircraft operations sites in LA and NYC. Archer’s Midnight eVTOL, developed in cooperation with DOD, is able to reach 100 miles at up to 150 mph.
It is fair to say that Archer Aviation is the highest funded flying car stock in the U.S. with wide technology collaborations for its parts and manufacturing. Those include Stellantis, Hexcel, Garmin and Safran Electronics & Defense. In total, the company received over $1.1 billion for commercial rollout in 2025.
So, ACHR stock gained the most value over one-year, at 94%, while going down 16% YTD. Based on seven analyst insights pulled by Nasdaq, the average ACHR price target is $10.33 compared to its current $4.89 per share.
On the date of publication, Shane Neagle 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.
