Some of the best flying car stocks have witnessed big moves for year-to-date. However, this upside might just be a teaser of what’s likely to come in the long term. The flying car market is still at an early stage and the first movers can be massive value creators.
To put things into perspective in terms of market potential, Morgan Stanley expects urban air mobility to be a $29 billion market by 2030. It’s further expected that the market size will swell to $1 trillion by 2040. These are big numbers and justify the call to consider exposure to some of the best flying car stocks.
This column focuses on three flying car stocks that represent attractive companies. My screening criteria were to look for companies that are making steady progress in terms of regulatory clearance. Once this is achieved, growth is likely to go ballistic.
Let’s talk about three flying car stocks with a promising outlook.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) stock has already surged by 106% for year-to-date. However, the stock remains attractive and is among the best flying car stocks to buy for multi-bagger returns.
Among the business positives, there are two points to note. First, the company has commenced flight testing of the prototype production. Furthermore, the company’s certification plan with the Federal Aviation Administration has been progressing smoothly with two-thirds of certification plans already accepted. The completion of all certifications from the FAA will be a big upside catalyst for JOBY stock.
It’s worth noting that the company already has contracts worth $131 million from the U.S. Air Force. Delivery of the first electric vertical take-off and landing aircraft in 2024 to the Air Force will be a major validation of the product.
From a financial perspective, Joby Aviation reported cash and equivalents of $280 million as of Q2 2023. The company is fully financed for investment plans for the next few quarters.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) stock has surged by 88% for year-to-date. I expect the positive momentum to sustain backed by positive business developments for this flying car company.
In am major development, EHang’s aircraft cloud system has been approved by the Civil Aviation Administration of China for trial operations. Back in July, the company had signed a memorandum of understanding with Bao’an District Government of Shenzhen municipality for urban air mobility operation center. Clearly, there have been positive developments in 2023 as the company moves towards commercialization in a potentially big market in China.
It’s also worth noting that the company has aggressive plans for expansion beyond China. EHang has already conducted more than 39,000 demo and trial flights in 14 countries. As an example, the company’s test flights were used to transport blood bags in Belgium in July. The company also has a tourism joint venture with Xiyu in China. With wide applications, the addressable market seems big and EHang is well positioned to benefit.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) stock has skyrocketed by 265% for year-to-date. I would wait for some correction before considering exposure to this potential value creator.
In an important development, Archer has received FAA certification for its Midnight eVTOL aircraft. The company expects flight test operations to begin in early 2024. The company is also scheduled to deliver the first Midnight aircraft to the U.S. Air Force by the end of the year or in Q1 2024. I must mention that the U.S. Marine Corps has also visited Archer and another possible contract might be in the pipeline.
Recently, Archer completed a $215 million investment round that was led by Stellantis (NYSE:STLA). Other major investors in this round include United Airlines (NASDAQ:UAL) and Boeing (NYSE:BA). Blue-chip investor participation is a clear indicator of the potential the company holds in the coming years.
On the date of publication, Faisal Humayun 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.
