Currently, China appears to be leading the way in flying car stocks. They’re seizing a sizable chunk of market share in the electric vehicle take-off and landing (eVTOL) sphere. Plus, China accounts for 50% of the world’s total eVTOL models.
However, the U.S., U.K., Germany, Brazil and even Slovakia all have companies working on differing forms of the technology. Multiple countries competing in the same sector can often inspire them to get a profitable product to market faster.
Many diverse sectors can benefit from the addition of eVTOLs, which is why it’s estimated the market for flying cars could reach $1.5 trillion a year by 2040. This may create profitable opportunities for investors who get into this market on the ground floor.
So, let’s look at three flying car stocks that could make you a mint.
Eve Air Mobility (EVEX)
Eve Air Mobility (NYSE:EVEX), a subsidiary of Brazilian-based aircraft manufacturer Embraer (NYSE:ERJ), will reveal its first flying car prototype later this year. Embraer-X, Embraer’s innovation division responsible for developing new ideas, created the Eve brand in October 2020. While the company is in early phases of development, that could provide pioneer investors with more opportunity long term if the company succeeds.
“Eve had only assembled and even flown the 1:3 scale model […], which is like a giant drone. Now, we are going to produce the real vehicle, which we will use in the future. […] This is an essential step to begin certification with the National Civil Aviation Authority [ANAC],” said president of Embraer-X, Daniel Moczydlower.
The stock currently trades at $5.41 at time of writing. But analysts anticipate a 75% upside with an average target of $9.50. While purchasing EVEX will likely yield the best payoffs in the long term, it’s promising that it is backed by a company that is up 43% year-to-date (YTD). For investors looking at flying car stocks, it doesn’t hurt to be diversified among companies at different stages of production.
Archer Aviation (ACHR)
If you had to pick only one stock, Archer Aviation (NYSE:ACHR) looks like it might have the best upside right now.
Through a myriad of partnerships, including one with United Airlines (NASDAQ:UAL), Archer Aviation has secured some significant business growth opportunities lately. It is working with the United Arab Emirates (U.A.E.) to launch an air taxi program by 2026. Also, it expects to be operating in the Santa Monica, California market by the end of 2025.
Trading at $3.96 at time of writing, analysts anticipate a 165% upside with an average target of $10.33. While it’s down 33% so far this year, it’s up 91% over the last 12 months. Currently, general investor sentiment is down, and more volatile sectors feel that to a greater extent.
Right now flying car stocks are a long term play and Archer may continue to see ups and downs. But in the long term, its strategic partnerships and focus on urban air mobility (UAM) transportation could make it a winner.
EHang Holdings (EH)
Within the last week, EHang Holdings (NASDAQ:EH) announced that its EH216-S pilotless eVTOL successfully completed its first autonomous flight in Abu Dhabi. Following the recent DRIFTx event in that region, EH also announced it will be placing a permanent footprint in the area with the addition of a regional headquarters. Abu Dhabi authorities are specifically pushing for an increase in autonomous vehicle usage in the area. So they are happy to help support companies like EHang Holdings.
These big headlines and investments set EHang Holdings apart from some of its Chinese counterparts. It does business across the world, and its international customer base includes partners from Europe to Asia. Also, they partner with Greater Bay Technology, a manufacturer of fast-charging batteries. They develop eVTOL power cells, batteries, packs, charging piles and energy storage systems that meet Civil Aviation Administration of China (CAAC) standards. Innovation at every point in the process will help EHang Holdings differentiate itself from its competitors at home and abroad.
However, whether the company falls victim to the phenomenon of growing too big too fast remains to be seen. But, it is the only company on this list up both YTD and in the past 12 months. Furthermore, it’s headquartered in the country that seems to be taking eVOTL production most seriously. Therefore, EH is a solid pick for those looking to invest in flying car stocks for both the short and long term.
On the date of publication, Philippa Main 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.
