The concept of flying cars, once limited to movies, is nearing reality with numerous companies making notable advancements. Although not yet practical, investing in these companies certainly provides the potential for significant returns over the long term.
Notably, Morgan Stanley (NYSE:MS) recently predicted the flying car market could hit a whopping $1 trillion by 2040, possibly reaching $9 trillion by 2050. The right flying car stocks offer significant growth potential, with a potential doubling in value by the end of the next year due to test flights and progress toward commercialization.
The flying car industry was valued at $220 million in 2022, and experts predict it could exceed $1.5 trillion within two decades, showing a remarkable CAGR of over 55%.
Here are three of the best flying car stocks to consider adding to your portfolio for long-term gains.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) stock is up 162% year-to-date, but the stock is down more than 30% from its 52-week high. Accordingly, I think this recent dip provides a buying opportunity.
Two significant recent developments include the company’s FAA certification for midnight flights and $215 million in new investments from Boeing (NYSE:BA) and United Airlines (NYSE:UAL), validating the company’s future potential.
Additionally, last week, Archer received a $1 million payment from the U.S. Air Force for a mobile flight simulator, which will aid pilot training and promote eVTOL technology at public events. The payment is part of contracts worth up to $142 million, assuming certain milestones are hit.
Finally, ACHR shares recently took off following an announcement the company secured financing for its Covington, Georgia manufacturing facility. This facility would be the world’s largest eVTOL facility by volume after completing the first construction phase.
These are a lot of catalysts to consider, and why Archer is the first stock on this list.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is another flying car stock with catalysts galore. The company recently delivered an eVTOL aircraft to the U.S. Air Force and collaborated with NASA on its incorporation into civilian airspace. This collaboration is included in a contract called AFWERX Agility Prime, signifying the company’s progress from remote testing to pilot-inclusive flight tests. Indeed, this transition positively impacted JOBY shares.
Founded in 2009, Joby Aviation aims to revolutionize urban air mobility with electric vertical takeoff and landing (eVTOL) aircraft. JOBY stock has surged 88% year-to-date under the leadership of CEO JoeBen Bevirt, reflecting strong market interest in their green and efficient transportation vision.
This prominent eVTOL tech firm has also secured FAA approval for launching commercial passenger services by 2025. Joby’s partnership with Delta Air Lines (NYSE:DAL) is set to revolutionize urban transportation in cities like New York and Los Angeles.
Xpeng (XPEV)
In Xpeng’s (NYSE:XPEV) case, its stock surge in June and July wasn’t just hype; it had solid foundations. The rally was fueled by strong delivery figures and a strategic, long-term partnership with Volkswagen (OTCMKTS:VWAGY). This collaboration has the potential to benefit both companies, making Xpeng more profitable and helping Volkswagen regain ground in the Chinese market.
XPeng is set to expand into key European markets, with plans for Germany, the UK and France in 2024. A substantial alliance with Volkswagen enhances its autonomous driving tech for the European market. XPeng’s X2 flying car is also making waves in the eVTOL sector, having flown in Dubai and obtained a special flight permit in China this year.
While Xpeng’s EV catalysts might not yield immediate results, the next few quarters could see a potential rally if various factors drive the company closer to profitability. Over the long term, achieving EV profitability and eVTOL tech commercialization may trigger significant gains for the stock.
On the date of publication, Chris MacDonald did not have (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.