Do you know how to invest in flying car stocks? Flying cars have long been a science-fiction dream. Who doesn’t remember the iconic DeLorean from the Back to the Future movies? By now, many of us were hoping to see this technological marvel. We have gone a long way since the 80s but haven’t yet decoded the secret to flying cars.
Today, many companies are working on this technology. Once all the hurdles are met, our cities and societies will have to adapt to this new method of transportation. Below, we will explore some public companies working to make flying cars a reality and some of the challenges ahead for this new industry.
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Obstacles to Flying Vehicles
Before we begin our discussion on how to invest in flying car stocks, we need to have a realistic idea of what lies ahead. The industry concerned has a name: electric airplanes capable of vertical takeoffs and landings (eVTOLs).
This encompasses all types of flying vehicles for personal and commercial use. The main issue with eVTOLs is the current state of our transportation system. Our highways will have to be thought over and remodeled. The next important issue has to do with physics. Similar to the technology for space travel, it may look easy on paper, but the science behind the product requires thousands of hours of work and many failures.
Most companies are designing small vehicles for short distances in big cities. The competition in this industry will likely increase in the years to come, with many new and existing players fighting for a slice of the market share.
How to Invest in Flying Car Stocks With Federal Aviation Administration (FAA) Certificate
To begin ‘’the flight of vehicles in limited locations for exhibition, research, and development’’, a certificate is required by the Federal Aviation Administration (FAA).
Few certificates were awarded until late June. The hype about eVTOLs is back now that companies are approved to test their products. We are still far from seeing flying cars roam in the streets, but some areas will be allowed for test runs.
Let’s explore some of the existing public companies and their plans for flying vehicles. We can get a jump on how to invest in flying car stocks with these companies.
JOBY Aviation (NYSE: JOBY)
Let’s start learning how to invest in flying car stocks with JOBY. Joby has been public since 2021 via SPAC, but it had a prototype in the works since 2015.
In June, the company got the green light to test its electric air taxi from the FAA. Joby recently purchased Uber’s flying car division to speed up its development. The company is hoping to establish its commercial operations by 2025. It aims to turn an hour-long drive into a 15-minute flight for up to 4 passengers.
JFK Airport in Manhattan will be the starting point for its operations. Two more cities will be added if all goes well. By 2026, Joby is aiming to produce and operate over 1000 aircraft.
Is Joby a smart investment?
Unfortunately, it’s too soon to say if this would be a good company to learn how to invest in flying car stocks. Among the stocks in this article, Joby is the most valuable and hasn’t performed so poorly given the circumstances. It is ahead of many of its competitors.
Financially, it probably won’t be profitable until at least 2030. Joby currently has around $1B in cash but expects to spend about $400M annually. Do the math.
There are still too many hurdles and regulatory checkmarks to invest confidently in Joby, but the right pieces are slowly falling into place. If the promised deadlines are met, Joby becomes one of the industry’s leaders.
Fun fact: Toyota is Joby’s largest external shareholder and one of its main partners and manufacturers.
How to Invest in Flying Car Stocks With Archer Aviation (NYSE: ACHR)
Archer Aviation also went public via SPAC in late 2021. The company received the FAA green light back in 2021. Archer recently held an event for the FAA, NASA, and the White House, showcasing its recent eVTOL ‘’Midnight’’.
It is reportedly 1000 times quieter than a helicopter and can fly 20-minute stints. It can also be charged up quickly. In August 2022, Archer secured a partnership with United Airlines Holdings for a $10M deposit for 100 aircraft. Since March 2023, the first air taxi route at Chicago O’Hare International Airport has been conducted thanks to this partnership.
Finally, Stellantis (a subsidiary of Peugeot, Chrysler, Citroën, Opel, Dodge, and more) has increased its stake in Archer to more than 10% ownership. That is a significant cash flow for a company that desperately needs the funds to keep up in this highly competitive industry. Should we know how to invest in flying car stocks with this company?
Is Archer Aviation a Smart Investment?
Archer has a working prototype and an FAA certification. Those are two major checkmarks in its favor. What about its financials? Like its competitors, Archer is unprofitable and has less than $500M of cash on hand.
The company is burning cash fast and will likely need to raise more soon. It is also too early to guess how much potential this stock has. Archer deserves to be looked at due to its working prototype, FAA certification, and partnership with Stellantis. So if you know how to invest in flying car stocks, keep them on your radar.
EHang (NASDAQ: EH)
Next on the list is China’s EHang. It is the only stock on today’s list that has grown since going public. The company is focusing on the development and manufacturing of autonomous aerial vehicles.
In China, EHang is servicing many industries, such as aerial cinematography, photography, emergency responses such as medevac, and survey information. It is certified by the Chinese FAA and the Civil Aviation Administration. EHang is looking to expand its business in Europe, notably with the Spanish National Police, and eventually enter the US market.
Currently, the electric prototype has a max payload of 220kg and a range of 30km. It is perfect for small flights to and from work. EHang is also looking to establish its presence in complementary industries requiring uncrewed flying vehicles.
The requirements may be looser in China, but it will take some time in the US to bring all the company’s plans to life. EHang also remains a good stock to watch for the future if you know how to invest in flying car stocks.
Vertical Aerospace (NYSE: EVTL)
Vertical Aerospace is a British company with some big names on its board of directors. One of the most impressive is Mike Flewitt, former CEO of McLaren Automotive and VP of Manufacturing for Ford. His experience in the industry might be a big boost for Vertical Aerospace.
The company hopes its main prototype, the ”VX4”, will make waves worldwide. Currently, the product is seeing many pre-orders by some big names around the globe. First, Babcock seeks 50 models for medevac (medical evacuation) procedures. Next, American Airlines (NASDAQ: AAL) also secured a batch of pre-orders for flight operations.
Last, the EU and UK aviation agencies are very interested in the product. However, several delays until 2026 are hurting the company both on the stock market and in the industry.
The VX4 looks very good on paper. It emits very low emissions while flying at over 200mph. The goal is to facilitate urban mobility while remaining energy efficient. Private jet lovers might want to reconsider their method of transportation. And how to invest in flying car stocks.
Airbus, Boeing and Hyundai
Newer companies must fight with the big boys like the space travel industry. In this section, we will look at some existing multinational companies and their plans in the flying car industry.
To begin with, Hyundai (OTCMKTS: HYMTF), a giant in the automobile industry, is planning to bring air taxis to life. Next, Boeing (NYSE: BA) partnered up with Kitty Hawk (yes, that’s the actual name) to create a flying jet ski. Last on the list is Airbus (OTCMKTS: EADSY) with its CityAirbus prototype.
As you can see, it is only the beginning of this industry. An increasing number of small and big companies will attempt to steal some potential market share from their competitors.
Which one(s) will come on top so you can learn how to invest in flying car stocks? Only time, research, and development will tell. It remains anyone’s game.
Flying Car Stocks Conclusion
To conclude on how to invest in flying car stocks, the flying car (eVTOL) market is very recent and tons of progress lies ahead. Maybe in a decade, the industry will have as many big names as regular cars.
For the moment, a few companies are creating some buzz, but there isn’t a clear leader yet in the race. As FAA certificates are finally being awarded, you might see flying vehicles appear in your cities for test runs. As for their stocks, they will remain volatile and uncertain. until working prototypes are on the streets or seen in other industries.
