From planes to trains to automobiles, every innovation in human movement has opened new doors and new industries. Some of the most innovative companies of today are now bringing in flying cars, promising to once again revolutionize the way we travel around. Flying car stocks will bring about easier short-flights, and the possibility to fly and then drive to your destination. They may even replace helicopters as the medium of choice for getting across town without the traffic. And some are even priced at the cost of a luxury car and not the cost of an airplane, well out of reach of all but the ultra-rich.
The flying car stocks with the greatest potential today are those with proven technology and strong partnerships. A flying car needs to fly — obviously — but it also needs a market to fly in. So many flying car stocks have partnered with airlines, and air travel cities will be the natural first stop for many of these vehicles.
In addition, the best flying car stocks to buy are often pushing aggressive timelines, hoping to start ferrying passengers within the next two years. With interest rates and the cost of borrowing rising, this is likely prudent as flying car stocks need to start making money before they run out of runway provided by their cash and investments.
With the FAA taking steps to regulate air taxi services, flying cars are for the first time entering the mainstream. So, before you jet off to your next meeting, let’s look at the companies that might take you there.
XPeng (NYSE:XPEV) made news recently by buying DiDi Global’s (OTCMKTS:DIDIY) electric car division for around $744 million dollars. XPeng’s stock shot up after the deal was announced. But XPEV isn’t just an electric vehicle (EV) stock, it’s also a flying car stock. The company has been touting the potential of flying cars that can also drive on roads for years now. And its recent successful test flight of the Voyager X2 showed XPeng has the technology to back it up. While the flight was short, the event marked a significant milestone in the company’s journey toward electric air mobility.
The Voyager X2 has a projected price range of $126,000 to $236,000. This potentially positions it as an attractive option for those seeking efficient and convenient urban transportation. That price range is high for a traditional car but not for a helicopter. The transportation mode is advantageous to those wanting to avoid traffic congestion but one that can also drive when needed.
It’s worth noting that XPeng will face challenges from the E.U.’s potential anti-China tariffs. But that only makes diversifying into air taxis and flying cars even more beneficial. As urban congestion worsens and the demand for efficient transportation solutions grows, XPeng’s dual focus on EVs and electric air taxis positions could be key to the company’s future.
XPeng is still an unprofitable, speculative play. The company’s Q2 2023 earnings show that gross margin and vehicle margins were both negative. With total revenue of about $700 million and a net loss of about $390 million, it is burning cash. But with $4.65 billion in cash, short-term investments and time deposits, XPeng can keep burning for some time. And with huge potential for its vehicles, the company is still one of the most worthwhile bets in flying car stocks.
Joby Aviation (JOBY)
In the field of flying car stocks, Joby Aviation’s (NYSE:JOBY) recent developments show a bright future and high potential. For example, Joby and Delta Air Lines (NYSE:DAL) are partnering to provide air taxi services in New York and Los Angeles to take people to and from airports. This partnership leverages Delta’s expertise in aviation and Joby’s cutting-edge electric vertical takeoff and landing (eVTOL) technology to create convenient air travel in densely populated cities.
Furthermore, Joby’s substantial investment and partnership with Toyota Motor (NYSE:TM) demonstrates strong financial backing. Toyota’s $400 million investment and supply agreement provides Joby with the necessary resources for research and development. But it also signifies the automotive giant’s belief in Joby’s plans for the future of air transportation.
But the true showcase of Joby’s potential may be the recent hydrogen-powered voyage of the HY4 aircraft. That flight showed liquid hydrogen propulsion offers longer flight ranges of up to 932 miles. Note: The median flight in the United States is just 634 miles. Although not strictly a flying car, as it cannot drive, the HY4 could transform the aviation industry with short-haul hydrogen-powered flights.
Joby’s most recent earning report showed no revenue and a net loss of $286 million dollars. With $1.2 billion in cash and short-term investments, Joby still has a few quarters of runway to let them take off. But its partners still see potential, and so do I. As a flying car stock, Joby may soon upend the short-haul aviation industry, so keep it on your watchlist.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) has had a good year as a flying car stock. It recently settled a lawsuit with Boeing (NYSE:BA) over theft of trade secrets. They still plan to offer air taxi services by 2025. Year-to-date Archer stock soared by over 200% at the time of this writing. And with its partnership with United Airlines (NASDAQ:UAL) to fly an air taxi service in Chicago in 2025, the company is on track to meet its deadlines.
But Archer isn’t just interested in the civilian market. The company’s agreement to supply eVTOL aircraft to the United States Air Force underscores the confidence that even major players have in the company’s technology. That partnership not only provides valuable revenue but also highlights the versatility and reliability of Archer’s aircraft. Even beyond civilian air mobility, Archer is making waves.
The craft it will supply to the Air Force is the Midnight eVTOL. Recently shown off at the 2023 Global Aerospace Summit, Archer claims the vehicle is optimized for 20-mile trips, with a pilot, seating for four and just a 12-minute charge. The Midnight is an impressive option for getting across town in a jiffy.
Archer’s Q2 2023 earnings report shows no revenue, net loss of $184 million, and cash and cash equivalents of $408 million. The company has a very short runway compared to other flying car stocks. But with partnerships, routes and aircraft already lined up, Archer can still dominate the air taxi industry if it can last until 2025. For investors who think they can, Archer is one of the best flying car stocks to buy this year.
On the date of publication, John Blankenhorn 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 biedexmarkets.com.com Publishing Guidelines.