Although a speculative sector, adventurous investors with some loose change burning a hole in their pocket may want to consider compelling flying car stocks to buy. Fundamentally, such gamblers enjoy alignment with one of the most promising industries.
According to Allied Market Research, the vertical electric mobility sector may reach a valuation of $215.54 million in 2025. While that sounds small, what you’re really doing with flying car stocks is planting seeds. Over time, you might benefit from a deep forest of profitability. Indeed, experts project that by 2035, the segment may hit just over $3.8 billion.
As well, the underlying electric vertical takeoff and landing (eVTOL) aircraft potentially offers myriad social benefits, such as reduced noise. In addition, eVTOLs could cut back on emissions, thus forwarding a positive environmental impact. On that note, below are flying car stocks to consider.
EHang (EH)
Based in China, EHang (NASDAQ:EH) is one of the top performers among flying car stocks. Since the start of the year, EH has almost doubled in value. Over the past 365 days, EH had at one point tripled in value. It’s still very much viable, up over 160%. As a company, EHang has a vision for the future, which also specializes in smart city management.
However, the attention mostly centers on the enterprise’s air mobility business. Enticingly, EHang features two business areas. First, it seeks to leverage its eVTOL aircraft for passenger transportation. With highly dense urban metropolises long imposing a traffic nightmare for Asian countries, the electric air mobility market can potentially skyrocket in this part of the world. Second, EHang aims for logistics services, including using eVTOLs as firefighting platforms.
Still, investors will be taking a risk. Financially, it’s a messy, overvalued entity, based on information provided by investment data aggregator Gurufocus. Nevertheless, if the narrative rings true, EH could be intriguing. Thus, it’s one of the flying car stocks to keep on your radar.
Archer Aviation (ACHR)
Headquartered in San Jose, California, Archer Aviation (NYSE:ACHR) focuses on developing eVTOL aircraft. Primarily, its plans involve transporting people in and around cities via an air taxi service. Per its public profile provided by Google Finance, Archer claims that its e-mobility craft has a range of up to 100 miles. It can also travel at speeds of up to 150 miles per hour.
Looking ahead, ACHR may be an enticing opportunity because of the possible emergence of an entirely new industry. According to Allied Market Research, the global air taxi market reached a valuation of $817.5 million in 2021. However, experts project that by 2030, the segment could hit $6.63 billion. For context, Archer carries a market capitalization of roughly $1.5 billion.
As with many other flying car stocks to buy, Archer doesn’t carry the most sterling financials. That said, it does print a cash-to-debt ratio of nearly 19X, beating out 84% of its peers. Lastly, analysts peg ACHR as a strong buy with an $8.50 price target, implying about 47% upside potential.
Lilium (LILM)
A German aerospace company, Lilium (NASDAQ:LILM) develops the Lilium Jet, an electrically powered personal air vehicle capable of vertical takeoff and landing. One of the advantages that Lilium offers is flexibility. Per its website, the eVTOL aircraft can be configured for a range of customers and uses. This includes four-seat and six-seat configurations, allowing for premium air taxi services.
A key reason why people continue to bid up flying car stocks is that it’s difficult to put a ceiling on the underlying potential. For example, Precedence Research sees the global air taxi market to reach a valuation of $37.24 billion by 2032. That implies a compound annual growth rate (CAGR) of 28.9% from 2023, which the firm estimates the industry hitting $3.79 billion.
For full disclosure, Lilium also suffers from much red ink on its financials. Nevertheless, the company enjoys a cash-to-debt ratio of 18.19X, beating out 83.68% of its competitors. In closing, analysts peg LILM as a consensus moderate buy. Their average price target stands at $2.82, implying almost 164% upside potential.
On the date of publication, Josh Enomoto 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.
