These flying car stockss look attractive as they move toward commercialization in 2025 and geographic expansion
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Considering the progress on the business front, flying car stocks have been relatively subdued in the last two quarters. It’s a period of correction and consolidation before the big take-off.
The fact that the best flying car companies are on track for the commercialization of eVTOL in 2025 underscores this point. The next few quarters are therefore likely to be exciting in terms of certification completion and scaling-up of manufacturing operations.
Of course, from a long-term perspective, the early movers are likely to be massive value creators. By 2050, the market size is expected to swell to $9 trillion. For now, there is a good entry opportunity for at least 100% gains before the end of the year.
This column discusses three flying car stocks that are likely to be in the news for good reasons in the coming quarters. These ideas can make some quick money with the sector at an inflection point.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) stock has already doubled in the last 12 months. With the commercialization of eVTOL aircraft, I expect EH stock trend to remain bullish. A sharper rally seems likely in the coming quarters as results reflect gradual scaling-up of operations.
In terms of positive news, EHang received production certificate from the Civil Aviation Administration of China for its EH216-S eVTOL aircraft. This clears the path for mass production and will contribute to revenue growth in the coming quarters. The company has a suggested retail price of $410,000 per eVTOL for international markets.
Besides plans for scaling up operations in China, EHang is also expanding internationally. In the UAE, Wings Logistics Hub will be purchasing 100 units of the EH216 series eVTOLs. In Europe and Asia, the company has conducted thousands of trial flights. The stage is therefore set for stellar growth in the next five years.
Joby Aviation (JOBY)
Joby Aviation (NASDAQ:JOBY) stock has been in a downtrend with a correction of 23% in the last six months. In my view, this is a golden opportunity to accumulate before JOBY stock skyrockets. While the stock has corrected, business developments remain positive, and that’s the reason for the bullish sentiment.
It’s worth noting that in 2020, Joby became the first eVTOL developer to receive military airworthiness approval. Recently, the company announced that it will deliver two aircraft to MacDill Air Force Base in 2025. This is a part of the company’s contract with the U.S. Air Force that’s worth $131 million. Having an early-mover advantage, Joby seems to be well positioned for bigger defense.
Joby also acquired a manufacturing operations facility in Ohio. The facility is likely to have the capability of building up to 500 eVTOL per year. Once the facility is commercialized, it will support scaling up of operations.
It’s worth noting that Joby has already completed three of the five stages of the certification process from the U.S. Federal Aviation Authority. Commercialization of operations in the U.S. is on track for 2025. Internationally, the UAE is likely to be the first market for commercialization.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) has remained sideways to lower in the last six months. This is a good opportunity for accumulation, as the business is moving in the right direction.
First and foremost, Archer is well positioned for eVTOL commercialization in the United States in 2025. The for-credit testing with the Federal Aviation Administration is due and once that’s cleared, ACHR stock is likely to trend higher.
Further, Archer has been aggressively looking at partnerships for global expansion. With Falcon Aviation, company will jointly develop vertiport network in Dubai and Abu Dhabi for the launch of operations in 2025. This will be followed by an entry into India in 2026.
It’s also worth adding here that Archer has an order backlog of $3.5 billion. The backlog will continue to swell in the next 12 to 24 months. This will set the stage for stellar growth in the next five years.
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.