Flying cars are moving closer to reality, creating a potential trillion-dollar market for some of the world’s top flying car stocks. Boeing (NYSE:BA), for example, wants in on the market, with plans to launch flying cars in Asia by the time 2030 rolls around. XPeng (NYSE:XPEV) subsidiary AeroHT will reportedly start taking orders for its flying cars by October, with plans to mass produce by 2025.
Even SpaceX-backed Alef Aeronautics just said it received 2,850 orders for its $300,000 flying car — with a down payment of $150. Fully electric, the two-seated flying car reportedly has a driving range of 200 miles, and a flight range of about 110 miles. And just in case you don’t have $300,000 to spend on a car, the company is working on a four-seater for $35,000.
The flying car market could be worth a massive $1.5 trillion market, even $2.9 trillion by 2040, according to Morgan Stanley. If successful, flying car stocks could soar. In fact, here are three you may want to buy now.
Joby Aviation (JOBY)
While its chart is a mess, don’t write off Joby Aviation (NYSE:JOBY) just yet.
For one, according to the company, air taxis could be a reality by 2025. Two, backed by a $400 million investment from Toyota (NYSE:TM) and a $60 million investment from Delta Air Lines (NYSE:DAL), JOBY is hoping to win the race in getting flying cars off the ground. In addition, JOBY will deliver two aircraft to the MacDill Air Force Base in 2025 as part of its $131 million contract with the U.S. Air Force.
Better, the company recently completed Stage 3 of its certification process. It’s now working on completing its for-credit testing with the Federal Aviation Administration (FAA). It signed a definitive agreement with Dubai that gives JOBY exclusive right to fly air taxis there for six years. Plus, at the end of 2023, JOBY had $1 billion in cash and short-term investments.
Earnings haven’t been too shabby either. In its fourth quarter, the company’s earnings per share loss of 17 cents beat by two cents. Revenue of $1.03 million beat by $300,000.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) chart isn’t much better. But I wouldn’t write this one off either.
For one, it’s targeting electric air taxi trials in India in 2025, as it prepares for commercial service by 2026. At the moment, Archer Aviation is working with government officials in India to get regulatory approvals together. The company also expects to begin its commercial service in New York City by next year.
Also, Stellantis (NYSE:STLA) just raised its stake in ACHR by $15.6 million, and will reportedly “absorb the vast majority of the capital expenditures and working capital requirements to manufacture our aircraft at scale. I believe that we are the only eVTOL company in the world to announce a relationship like this with a top automotive manufacturer, and this gives us significant cash flow advantages,” as noted by Archer CEO Adam Goldstein.
Archer is also still waiting on certification, where progress is being made. According to the company, “We are now constructing the Midnight aircraft that will be used in ‘for credit’ flight testing with the FAA as the company progresses towards our goal of obtaining Type Certification in 2025.”
Lilium (LILM)
We can also look at flying car stocks like Lilium (NASDAQ:LILM) — which now trades at 91 cents per share.
Over the last few months, the company signed a memorandum of understanding (MoU) with Lufthansa Group (OTCMKTS:DLAKY) to explore a partnership on eVTOL aircraft operations in Europe. It also teamed up with Atlantic Aviation to “construct the necessary infrastructure for their regional air mobility service in the United States,” said John Redcay, Chief Commercial and Sustainability Officer at Atlantic, as quoted in a LILM press release.
The company also just started “production of the advanced, aviation grade battery packs that will power the Lilium Jet on its first piloted flight, targeted for the end of 2024. This latest milestone represents a landmark in the development of the Lilium Jet and follows extensive testing of battery pack subcomponents from individual cell to stack level with a focus on performance, safety and regulatory conformity,” as noted in a company press release.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
