The flying car or vertical aviation market is one of the fastest growing segments of the transportation industry. Analysts and market enthusiasts predict flying cars could very well revolutionize urban mobility and create a multi-billion-dollar market. With enough investment and consumer interest, this nascent market could become a force to be reckoned with, similar to how the electric vehicle (EV) market has grown in the past decade.
Of course, it can be tough to choose which flying car stocks are worth investing in. Wall Street ratings could be a good indication in this case. Below are three flying car stocks that have received at least one “Strong Buy” rating from Wall Street analysts.
EHang (EH)
China-based EHang (NASDAQ:EH) designs and manufactures autonomous aerial vehicles (AAVs) for applications such as tourism, logistics and emergency response. Unlike many AAV manufacturers, EHang has actually delivered a number of products and generated sales. Toward the end of last year, EHang received airworthiness certification from China’s aviation safety authority, making it the first company in the world to receive such a certification. The safety certification came after a number of compliance and safety assessments. Moreover, EHang’s third quarter results saw the AAV manufacturer delivered 13 AAVs, a notable increase over the 4 AAVs delivered during the same period in 2022.
Despite the economic overhang from the pandemic as well as an ongoing property debt crisis, EHang has still been able to grow its business and gain traction in a number of major Chinese cities. In February, the company signed an agreement with Guangzhou city authorities that will initially focus on airspace management, infrastructure development and policy support. This agreement will allow EHang to help develop an eVTOL industry in the city.
The stock nearly doubled in 2023, and although share price performance has certainly underperformed the market, shares could rebound as analysts revaluate EHang’s growth prospects.
Joby Aviation (JOBY)
While Chinese companies have certainly made strides to make flying cars a reality in the world’s second largest economy, Joby Aviation (NYSE:JOBY) has been working to build the eVTOL space in the United States. In particular, this California-based company aims to create a scalable eVTOL aircraft that can carry passengers and cargo over short distances.
The company has made significant strides in preparing cities across the United States for flying taxi infrastructure. In mid-January, Joby announced a partnership with eVTOL company Atlantic to electrify current aviation infrastructure in southern California and New York. This would eventually pave the way for Joby to kickstart the release of its long-awaited air taxi service.
Furthermore, Joby signed a contract Dubai’s Road and Transport Authority that would give the start-up exclusive rights to launch and run an air taxi service in the UAE’s flagship city for six years. The air taxi service should launch by 2026. While Joby is definitely still pre-revenue, these various partnerships give us a glimpse into the company’s long-term potential as a major player in the nascent space. Joby’s share price is down nearly 20% in 2024, but the company’s stock could rebound as its flagship vehicle receives more certifications.
Lilium N.V. (LILM)
Lilium N.V. (NASDAQ:LILM) is final flying car stock to make this list. This company is based out of Germany and could provide investors with E.U exposure to the nascent sector. In particular, Lilium develops eVTOL aircrafts for high-speed air transport of people and goods.
The Lilium Jet is the company’s most anticipated product, and production of the eVTOL began in Germany in December 2023. Lilium has received a number of indications of interest worldwide for its product, in not just Europe but also in the U.S. and China.
As production ramps up, Lilium could be a good bet for the future of flying car stocks.
On the date of publication, Tyrik Torres 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.
