Why I’m Starting to Get Serious About Flying Car Stocks: 3 eVTOL Names On My Watch List

When I’m thinking about potential sectors of the economy that could provide meaningful upside for investors looking to put some capital to work for two or three decades (yes, that long-term), I like to think about what pain points society has that companies with revolutionary technologies are looking to solve. That’s a good place to start looking at least, in my view.

One of the sectors I’ve long thought is ripe for disruption is the urban mobility/transportation market. Traveling distances that may be too close to fly by too long or expensive to drive (or be driven via some ride-hailing app) brings about an opportunity for companies that can step in and provide a better and faster service for a potentially better price. The electric vertical takeoff and landing (eVTOL) sector is thus one I’m paying closer attention to.

These three eVTOL names are the “flying car” stocks many investors may have already heard of, but here’s why I think they’re options that may be worth getting serious about.

Joby Aviation (JOBY)

First on my list of top-tier eVTOL stocks to consider is Joby Aviation (NYSE:JOBY). The largest company of this group, with a market capitalization of $5.5 billion, Joby is a leading player in the world of electric vertical takeoff and landing aircraft.

The company’s first-mover advantage in achieving FAA Part 135 certification for its air taxi platform positions the company well to receive final certification some time before the end of next year. At least, that’s hone Joby is targeting the launch of passenger service vehicles, while also testing full-scale prototypes as it looks for approval from regulators.

Given the company’s first-mover status in this sector, and the increasing likelihood that regulators are going to take a more hands-off approach to allowing technologies to at least be tested in key markets, this is a leader I think is worth considering given its technological lead.

Archer Aviation (ACHR)

Next, we have the second-largest player in this space, Archer Aviation (NYSE:ACHR).

Archer’s standing as a leading player in both the commercial market, as well as a player with specific capabilities in the defense sector, presents a more hybrid model for investors looking at exploring the future of air transportation. The urban mobility market should be large and growing (and that’s a market all three companies will play in). However, Archer’s secured contracts with teh U.S. military (including a recent $450 million defense contract the company undertook with other parties) highlight its growth potential both in the U.S. and abroad.

Archer holds a cash-rich balance sheet, which should hold enough capital to get this company’s aircraft off the ground. It’s a race to commercialization, so we’ll have to see how Archer stacks up in this regard. But the company is targeting 2025 as the year it expects to receive FAA certification for its eVTOL aircraft, and if that target is met, I’d expect this stock to soar higher along with the rest of the group.

EHang Holdings (EH)

Chinese eVTOL maker EHang (NASDAQ:EH) is the final company I’m going to round out this list with, due primarily to the fact that this is a China-based company. Much like the EV sector, which was started with American ingenuity and ended up resulting in Chinese dominance from a manufacturing and efficiency perspective, there’s reason to believe that the eVTOL space won’t be any different. Indeed, in terms of getting regulatory approvals and passing through the wringer of government, EHang could have the easiest path forward (providing share price appreciation to those who are willing to overlook the geopolitical headwinds with any investment made in China).

The company’s value lies in its approach to producing truly unmanned autonomous aerial vehicles. Unlike the other players on this list, which require human pilots to operate their vehicles (or are expected to), EHang is pursuing somewhat of a different model.

The market for passenger drones in China and other global markets could be massive, and EHang would be my preferable way to play this space. While the company does have a smaller footprint for now than Joby or Archer, this is a competitor I could see gobble up market share, depending on how trade dynamics play out in the coming years.

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