Flying car stocks have witnessed a meaningful rally in the last few quarters. However, considering the impending growth potential, the rally in flying car stocks is just the tip of the iceberg. I must add that the reason for talking about some of the best flying car stocks is the fact that commercialization is coming within the next 24 months.
Talking about the numbers, it’s expected that the global flying car market will be worth $17.84 billion by 2030. Of course, this is just the beginning. The market size is expected to swell to $1 trillion and $9 trillion in 2040 and 2050, respectively. The industry tailwinds are therefore more likely for a few decades than a few years.
It goes without saying that some of the best flying car stocks will be massive value creators. Besides the long-term outlook, I am bullish on flying car stocks skyrocketing in the next 24 months. The reasons include commercialization coupled with swelling of the order backlog.
Let’s discuss three flying car stocks that are worth buying at current levels.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) is among the best flying car stocks to buy for multibagger returns. Even after a massive rally of 360% in the last 12 months, EH stock looks attractive considering the growth prospects.
In a major development, EHang has received the certificate issued by the Civil Aviation Administration of China. The certificate implies that “EH216-S model design fully complies with CAAC’s safety standards and airworthiness requirements.” The vertical take-off and landing aircraft is therefore approved for conducting passenger-carrying commercial operations. This news is a key catalyst for a sustained rally.
Another big reason for liking EHang is the fact that the company is aggressively diversifying. More than 39,000 trial flights have already been conducted by the company in 14 countries. Over the next 24 months, there will be several approvals on the cards. Further, EHang is leveraging on its expertise to cater to several industries that include, but are not limited to, tourism and healthcare. The addressable market is therefore significant.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is another company that’s taking rapid strides when it comes to commercialization of flying cars. The price action in ACHR stock has been positive with a rally of 83% in the last 12 months.
In the recent past, there have been two important business developments. First, the company received an initial payment from the U.S. Air Force for a contract that’s valued at $142 million. The contract is a validation of the company’s eVTOL technology.
Further, Archer has signed an agreement with Abu Dhabi Investment Office to launch all-electric air taxi service across UAE by 2026. The company is already targeting commercialization in the U.S. by 2025. The new agreement sets the stage for stellar growth in the next five years.
It’s also worth noting that the company received investment of $215 million from Stellantis (NYSE:STLA), Boeing (NYSE:BA), and United Airlines (NASDAQ:UAL). With the backing of some big investors, financing aggressive growth is unlikely to be a concern.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) looks like another interesting name among flying car stocks that can deliver multibagger returns. JOBY stock has trended higher by 41% in the last 12 months on the back of positive business news.
Earlier this month, Joby announced that flight testing with pilot on-board has commenced. The company has already delivered the first eVTOL aircraft to the U.S. Air Force as a part of the $131 million contract. This is an important milestone and aircraft delivery will continue in 2024. Joby’s first manufacturing facility with a capacity to build 500 aircraft annually will come online in 2025. This will be the key catalyst for scaling up operations.
From a financial perspective, Joby reported cash and equivalents of $1.2 billion as of Q2 2023. This provides ample flexibility for investments through commercialization. With more than two-thirds of the certification plan accepted by the Federal Aviation Authority, Joby is on-track for commercial flights in 2025.
On the date of publication, Faisal Humayun 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.