3 Flying Car Stocks That Can Double by the End of 2024

Stocks to buy

Some of the best flying car stocks have been flying higher this year. I however believe that it’s just the beginning of good times for flying car companies. The phase of big investment in research and development has yielded results. Several flying car companies are likely to launch test services followed by commercial flights in the next 12 to 24 months.

Talking about the industry potential, the global flying car market is expected to reach $17.84 billion by 2030. Through this period, the industry is expected to grow at a CAGR of 25.1%. Of course, growth is likely to sustain and accelerate beyond 2030.

Morgan Stanley believes that the flying car market is likely to be worth $1 trillion in 2040. The market size is expected to swell to $9 trillion by 2050. Without a doubt, the market is in a nascent stage and the best flying car stocks can deliver multi-bagger returns.

Coming back to the near term: Given the test flights and steady progress towards commercialization, these flying car stocks are likely to double by the end of next year.

Joby Aviation (JOBY)

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Joby Aviation (NYSE:JOBY) has surged by 88% year-to-date. I expect the strong momentum to be sustained next year on the back of positive business developments.

In recent news, Joby has delivered the first electric air taxi to the U.S. Air Force. The delivery is a part of the $131 million contract with the Department of Defense. There can be a potentially big addressable market in the defense sector in the coming years. In another positive news, the Company’s wholly-owned subsidiary has completed “the world’s first piloted flight of a liquid hydrogen-powered electric aircraft.”

It’s also worth noting that more than two-thirds of certification plans have already been accepted by the Federal Aviation Authority. The progress is smooth on that front and the Company announced flight testing of the prototype in Q2 2023.

While cash burn will sustain, I don’t see financing growth as a challenge. In the last quarter, the Company received $280 million in funding from Baillie Gifford and SK Telecom.

EHang Holdings (EH)

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EHang Holdings (NASDAQ:EH) stock has witnessed a rally like JOBY stock with an upside of 89% for year-to-date. With an autonomous aerial vehicle technology platform, EH stock is poised for multi-bagger returns.

There has been a flurry of positive developments for the Company in the last few months. In July, EHang announced a $23 million private placement funding by strategic investors. In August, EHang announced that its unmanned aircraft cloud system has been approved by the Civil Aviation Administration of China for trial operations. The Company has also delivered five units of its autonomous aerial vehicle to Boling Holding Group as a part of the total purchase agreement for 100 AAVs.

It’s worth noting that the Company has expanded test flights to Asia and Europe. EHang has completed 39,000 demo and trial flights in 14 countries. With a big addressable market, the Company seems positioned to boost its order book in the coming years.

Archer Aviation (ACHR)

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Archer Aviation (NYSE:ACHR) stock has skyrocketed by 162% for year-to-date. I believe that the recent correction presents a good opportunity to accumulate before a renewed rally.

I believe that there are two important developments in the recent past that are worth mentioning. First, Archer has received all necessary certifications from the Federal Aviation Administration for midnight flights. The Company expects test flights to commence in early 2024.

In another big development, Archer received $215 million in new investment from the likes of Boeing (NYSE:BA) and United Airlines (NYSE:UAL), among others. The backing of big investors underscores the potential Archer holds in the coming years.

With this funding, Archer has a liquidity buffer of $675 million. This is likely to ensure that the company is fully financed through 2024. Archer plans to enter commercial services in 2025, which will possibly require further equity infusion.

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.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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