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"Flying cars," or eVTOLs (electric vertical takeoff and landing vehicles), blend features of cars and helicopters. Initially showcased by NASA in 2009, eVTOLs are now closer to reality. That's despite some setbacks for these air taxis, like crashes and company closures. Optimism remains high for their introduction to the market within the next decade.
For example, Boeing and Airbus have worked on eVTOL models, but startups like Archer Aviation, Joby Aviation, and EHang Holdings lead in terms of technology. Investors are on the brink of a new aviation era with eVTOL aircraft, set to transform short-haul flights. As eVTOL technology and regulatory approvals progress, regional air mobility is expected to surge, offering a unique investment opportunity in this emerging industry. Here are the top three flying car stocks to consider.
Key Points About This Article:
- Electric vertical takeoff and landing (eVTOL) aircraft could revolutionize urban mobility, as more jurisdictions approve these vehicles.
- Here are three companies that are making positive steps with regulators and could soon dominate (or at least share) the skies.
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Archer Aviation (ACHR)
Image of an electric vertical takeoff and landing (eVTOL) aircraft
As this eVTOL maker is making impressive progress, Archer Aviation ( NYSE:ACHR ) remains unprofitable based on its Q1 2024 report . At that time, it only had $405 million in cash. However, Archer has ambitious goals and it is determined to reach such despite significant risks and financial hurdles. That said, most investors prefer to wait for more milestones achieved, but I say this is the best time to buy ACHR stocks while it’s progressing.
In July, Southwest Airlines and Archer Aviation agreed to develop electric air taxi networks at California airports. The companies signed a memorandum of understanding to establish operations connecting airports and nearby communities. Southwest's stock rose 2%, while Archer's increased by 10.5%. The company is also progressing in creating its Midnight eVTOL , which aims to revolutionize urban air mobility. Also battery-powered, the Midnight aircraft is popular due to its vertical takeoff and landing technology.
Currently, Archer Aviation has been gaining more traction with its product and regulatory development, pushing JPMorgan to raise its price target from $5 to $6 per share. This price target increase implies an impressive upside of 31.6% in ACHR stock. Despite this, the target remains below the consensus price of $8.30. JPMorgan maintains an "overweight" rating, while the overall consensus is a moderate buy based on five analysts' opinions.
Joby Aviation (JOBY)
Image of an electric vertical takeoff and landing (eVTOL) aircraft
Joby Aviation ( NYSE:JOBY ), another leading name in the eVTOL market, has started the certification process in Australia . Having completed three of five FAA certification stages, the company aims to launch global air taxi networks. Its all-electric aircraft, designed for a pilot and up to four passengers, promises quieter and emission-free service compared to helicopters. The Australian Civil Aviation Safety Authority (CASA) appears poised to fast-track approval based on the FAA’s validation once Joby completes the final US certification stages.
The company announced the rollout of its third production prototype from its Marina, CA, facility, with four aircraft set for flight tests next quarter. Importantly, Joby also just released its Q2 report, with the company reporting EPS of -18 cents, meeting analyst expectations. The company generated $28,000 in revenue, significantly missing the estimated $250,000 by 88.8%.
Joby Aviation also aims to begin commercial air taxi services in Dubai by late next year , according to the CEO. Specializing in eVTOL aircraft for short commutes, the company anticipated a 2025 launch, pending FAA and international certification. CEO JoeBen Bevirt announced plans for infrastructure groundbreaking and initial flights next year, targeting commercial operations by year's end.
EHang Holdings (EH)
Image of an EHang drone
EHang Holdings (NASDAQ:EH) saw a 42% stock decline over the past year, but positive developments may change investors' minds on this name. Most recently, the Civil Aviation Administration of China released EHang’s Air Operator Certificate and approved its plans of mass production of their pilotless eVTOL. Reporting 178% revenue growth , Archer is well-positioned to succeed, assuming the company is able to fully launch in new markets and maintain this growth rate (or see it accelerate).
Moreover, the company also achieved a new milestone in June, with its EH216-S pilotless eVTOL completing its first flight in Mecca, Saudi Arabia . Partnering with Front End Limited and supported by local authorities, this flight demonstrates the transformative potential of eVTOL for regional transportation. The collaboration aims to enhance the annual Hajj pilgrimage with innovative, efficient, and sustainable solutions, highlighting the impact of public-private partnerships in Saudi Arabia.
Though not commercially approved yet, it operates under a temporary license. It also partnered with China Southern Airlines for the Zhuhai region and delivered 27 EH216-S units to Wencheng County, plus 10 more to Taiyuan. EHang also tested flights globally, aiming for a multi-trillion renminbi market, making it a strong flying car stock.
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