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Investors are pouring money into flying car stocks, one of the hottest investment trends over the last couple of years. The flying car industry is also advancing with new technologies, especially in the electric vertical take-off and landing (eVTOL) segment. The current trends for investors to look at are scalability, safety and public acceptance of these technologies. Milestones and test flights are being reached frequently and the prototypes are being developed to a high standard, which will be a boon for flying car stocks as we move forward.
Analysts have predicted that the market for flying cars will increase significantly. This growth is boosted by the rising need for solutions as a means of addressing traffic jams and shortening the time taken in the course of moving through towns and cities.
Due to the low valuations and market caps of these flying car stocks, I believe there’s a proportionate upside capable of elevating one’s portfolio beyond the market’s general returns. So, here are three flying car stocks for investors to consider buying today.
Joby Aviation (JOBY)
Source: T. Schneider / Shutterstock.com
Joby Aviation (NYSE:JOBY) is one of the leading names in the eVTOL sector.
This is the first company to achieve key milestones before the FAA, including reaching the third stage in its approval process. This makes it the first mover in this new industry, which, I believe, will have a significant tailwind effect. Commercially, it has already handed over one aircraft to the U.S. Air Force and is expanding its manufacturing output to cater to future business requirements.
Nevertheless, Joby has $924 million in cash, which will be enough to implement the company’s plans, even if it does not turn a profit in the near future. When the company goes public in the commercial market by 2025, investors could have more faith in the company and higher visibility into its operations, which would be a boon for its stock price. Thus, JOBY could be one of those flying car stocks to buy.
Blade Air Mobility (BLDE)
Source: Wirestock Creators / Shutterstock.com
Blade Air Mobility (NASDAQ:BLDE) operates an urban air mobility platform. It is also a young company that plays a significant role in the market with a multiple revenue stream business model. As per BLDE’s Q1 earnings report, the Medical segment of the company that deals with the transportation of organs for transplant has recorded a strong 34.6% year-over-year growth rate. The Passenger segment has experienced some short-term challenges; however, Blade is working on enhancing the profitability in this segment by reducing costs.
The future of the eVTOL market is unknown for flying car stocks, so I think that BLDE exploring both a passenger and organ transportation strategy could help investors diversify their risk across different potential use cases.
I also like that BLDE has a far smaller market cap than its more established peers such as JOBY. BLDE has a market cap of $286 million, while JOBY’s market cap is $4.58 billion. That implies there could be more upside for BLDE investors if it manages to get its business off the ground.
Vertical Aerospace (EVTL)
Source: T. Schneider / Shutterstock.com
Vertical Aerospace (NYSE:EVTL) is developing eVTOL aircraft and its operational development is very promising. Although there have been some delays in the certification process, the company is still planning on launching its new VX4 aircraft in the coming years.
Vertical Aerospace has already received over 1,400 pre-orders for the VX4, which proves there is great market potential for its eVTOL technology. Marubeni and American Airlines (NYSE:AAL) are examples of major partners that endorse the company and boost the credibility of the firm’s operational strategy.
Thus, although the certification time frame has been increased, Vertical Aerospace is already in contact with the regulators to deal with the remaining challenges.
EVTL has enough cash to last for less than a year’s worth of operations, and it seems likely the company will continue to offer equity in order to raise funds. Still, despite this risk, I still believe EVTL is one of those flying car stocks to buy thanks to its commercial validation.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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