Best flying car stocks to buy
Right now, there are several companies that are working to make flying cars a reality. Due to this, investors are eagerly looking for potential flying car stocks to buy. Investors know that if a company succeeds in mass-producing affordable flying cars, it could be bigger than Ford, Honda, and perhaps even Tesla (TSLA). The market is expected to grow from $215.54 million in 2025 to $3.8 billion by 2035. For long-term-oriented investors, that 34.1% compound annual growth rate holds massive appeal.
What company is developing the flying car?
Joby Aviation (NYSE: JOBY)
The company has been developing vertical takeoff vehicles for the last 10-plus years. Joby was launched in 2009 and released its first prototype in 2015. More recently, it purchased Uber’s flying car division. Joby expects to start commercial operations as soon as 2024.
One of the biggest hurdles for any flying vehicle company is regulators. Simply put, flying vehicles will never take off in Ameria without the Federal Aviation Administration (FAA) approval. The good news for Joby Aviation is that the company is in the process of receiving its Part 135 Air Carrier Certificate. For risk-averse investors, you might want to wait until after this certificate has been secured. For opportunistic investors, you can get into this flying car stock at a cheaper price before it gets this certificate.
Joby Aviation (JOBY 0.77%) could be a leader in the space in the next few years and is an enticing investment.
Archer Aviation (NYSE: ACHR)
Archer Aviation is another flying car stock that just went public via SPAC by merged with Atlas Crest Investment Corporation. Similar to Joby, it has only reported financial results from FY 2021. In this quarter, it announced a net loss of $348 million. However, it’s so early on for this flying car stock that I wouldn’t worry much about its movements.
EHang (Nasdaq: EH)
The final flying car stock is in China. Out of all three of these companies, Ehang has the most public financial information available.
In 2021, EHang posted $57 million in annual revenue. This represented a 68% decrease from 2020. However, it also reported a total net loss of $314 in 2021. Just like with the previous flying stocks, I wouldn’t focus too much on these early initial losses.
What is the best flying car stocks to buy now?
Just like with self-driving cars, many companies are quick to jump on the bandwagon. Every company wants to act as if it’s on the cutting edge of the industry. However, I don't think there's any way there's room for a dozen and more of these separate companies in the next couple of years. Be careful, many of these flying car stocks are vague on how close they are on delivering on its promises.
I think the best flying car stocks right now is Joby Aviation. The company is far and away the oldest eVTOL and most valuable of the trio, with a market cap of nearly $3.2 billion.
Final thought
This is a risky, speculative play, with absolutely no immediate commercial viability. These companies are either still in some phase of R&D mode or at best testing pre-production models. The most we can do at this point is identify leaders that might be worth upgrading to a long-term for future reference. But, at the end of the day, it may just not fly.
