Many investors question whether flying car stocks are the real deal because, for many, the concept remains rooted in science fiction. But Chinese companies are looking to soar with EV technology by 2024, with the U.S. looking to follow in 2025. Flying vehicles will proliferate rapidly as technology improves and city traffic worsens, with the market to expand 35.2% per year from 2023 to 2032, reaching around $4 billion.
The concept is not new in the US; the 2020 “Jetson Bill” in New Hampshire made it simpler for states to register flying automobiles. Alef’s “Model A” was the first FAA-certified electric flying car. The 2035 Alef “Model Z,” a four-person, 300-mile-range car, is also under development.
China’s Ministry of Industry and Information Technology’s “low-altitude economy” action plan is also noteworthy. This concept speeds up the production and marketing of flying cars, especially eVTOLs, with the aim of smart, eco-friendly air travel by 2030.
Let’s explore three flying car stocks to buy!
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is pre-revenue, meaning the company developing electric air taxis is not making any money yet, but the stock popped when the latest earnings dropped since losses narrowed over 16% and Joby had $924 million in cash and short-term investments at the end of the first quarter.
During the quarter, Joby Aviation released its second production test airplane and is expanding its factories in Marina, California and Dayton, Ohio.
The FAA has made public its official airworthiness standards for this company, making it the first electric air taxi company to achieve this. Joby also partnered with three different government offices in Abu Dhabi to create an environment for electric air taxis in the Emirate.
Staying in the Middle East, Joby Aviation is teaming up with Mukamalah Aviation, a Saudi Aramco company, to grow its business in Saudi Arabia. The agreement aims to use Joby’s eVTOL planes in Mukamalah’s activities, fitting with the Kingdom’s Vision 2030 environmental goals and its promise of net-zero pollution by 2060.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR), like JOBY, is pre-revenue, which means we will judge it on developments such as securing a key approval from the FAA.
After the approval, ACHR is now free to request final approvals on the certification and test plans for their Midnight eVTOL aircraft, bringing ACHR’s flying cab service closer to an official U.S. launch.
Archer’s Midnight aircraft made over 100 flights in the first quarter of 2024 and aims to make over 400 this year. It’s nearly ready to take off vertically, switch from thrust-borne to wing-borne flight and land vertically.
Midnight’s critical systems passed rigorous testing for guided flight tests and FAA clearance. Creating the first certified Midnight aircraft took a lot of labor. Piloted test flights will begin in late 2024.
As part of Phase 2 of its flight test program, Archer is getting ready to test its speed to achieve full wing-borne shift, which is critical to display whether these planes are ready to fly business lines.
In addition, Archer is FAA-certified to repair specialty aircraft under Part 145. The accreditation shows Archer’s dedication to safety and operating standards and is a major step toward 2025 commercial operations.
Archer Aviation is improving flight testing, system safety validation and production, making its eVTOL aircraft marketable. A key multi-million dollar partnership with the Abu Dhabi Investment Office and a solid cash flow of $405.8 million in cash will boost its urban air transportation expansion.
EHang (EH)
EHang Holdings (NASDAQ:EH) has a distinct advantage over other flying car stocks because its base is China, which is quick to approve regulatory changes and has the biggest middle-class consumer market.
Meanwhile, the Civil Aviation Administration of China gave EHang’s EH216-S self-driving passenger plane a production certificate in April. Getting this approval is a big deal because it means EHang can start making more of its eVTOL planes. Shortly after the announcement, EHang reported better-than-expected preliminary financial numbers for Q1 2024.
In addition to China, the EH216 AAV just finished its first passenger-carrying test flight in Japan, showing off its skills and growing its market share worldwide.
EHang is also partnering with Greater Bay Technology to create ultra-fast charging batteries for eVTOLs.
In the UAE, EHang performed the first passenger-carrying demo flights of its EH216-S model. In Abu Dhabi, the EH216-L and EH216-F models also went well on their demo flights.
On the date of publication, Faizan Farooque 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.
