In the context of the U.S. stock market, flying cars at this point primarily refer to electric vertical takeoff and landing aircraft or eVTOLS. As the name implies, eVTOLs are electric-powered aircraft “that take off and land going straight up and down.” Like helicopters, they can take off from and land almost anywhere. But the fact that they run on electricity makes them much cheaper to operate than helicopters which require a great deal of fuel. Additionally, eVTOls are simpler, safer, and cheaper to maintain than helicopters.
As a result, the cost to riders of using eVTOLs will be “much closer” to flying on commercial airplanes than trips on helicopters, Andrew Schmertz, the CEO and a co-founder of Hopscotch Air, a private commercial aviation firm said. Generally designed to transport two to five passengers, the aircraft is going to be used to transport people between points within cities and to and from airports. Additionally, the U.S. military is looking into using them. By enabling consumers to avoid traffic at relatively low price points, eVTOLs will, I believe, eventually become quite popular. Here are three top flying car stocks to buy on the dip.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) has sunk about 50% since Dec. 14. But the company continues to make progress in its efforts to become a major multinational provider of eVTOL service.
Archer is preparing to offer service in the United Arab Emirates by the end of next year, and it intends to become operational in India in 2026. Moreover, the firm disclosed last month that it had found a partner to help it bring eVTOL service to South Korea. Archer hopes to start providing rides in the Asian country by 2026.
In the U.S., Archer’s aircraft have received airworthiness certification from the FAA, and the firm is partnering with heavy hitters Stellantis (NYSE:STLA) and United Airlines (NYSE:UAL). In a smart strategic move, the firm looks set to make Silicon Valley one of its main hubs, as it recently noted that it plans to ferry passengers to and from five points in the region. The valley combines a great deal of automotive traffic, many early tech adopters and a critical mass of consumers with deep pockets.
Given Archer’s impressive progress and powerful partners, the firm is one of the top flying car stocks to buy on the dip.
Eve Mobility (EVE)
A subsidiary of Brazil’s Embraer (NYSE:ERJ), a major airplane maker, Eve (NYSE:EVE)is becoming a big player in Asia. In April, Eve announced that Japan’s AirX had agreed to purchase ten of Eve’s eVTOL aircraft. Additionally, AirX, the country’s “largest public helicopter air charter” company, has the option to buy another 40 eVTOLs from Eve. As I noted in a previous column, ” Given the huge crowds in Tokyo and the fact that the city has a sizable number of wealthy individuals, (Japan) should be a very lucrative market for eVTOLs.”
Calling the “Asia-Pacific region… an important market,” Eve noted that it is collaborating with “customers and operators in Australia, India and South Korea among other locations” in Asia.
And very impressively, Eve reported that it had received orders for 3,000 of its eVTOLs, while its aircraft are slated to begin providing service in 2026.
In light of Eve’s huge progress, the $160 million market capitalization of EVE stock is quite low. The shares are down nearly 10% from their 52-week high.
Joby Aviation (JOBY)
Like Archer and Eve, Joby (NYSE:JOBY) continues to make significant progress in its efforts to become a major eVTOL player. Earlier this month, the firm disclosed that the Federal Aviation Administration had approved its software platform. The platform will manage many functions of the company’s aircraft, including “the on-demand request of air rides by travelers (and) operations scheduling.” The software also features a pilot app that will “enable pre and postflight checks, ensure pilots are getting enough rest” and provide information on aircraft’s weight and balance.
Joby reported that the approval of the software represented a key milestone in its effort to start providing eVTOL service in America next year in partnership with Delta Air Lines (NYSE:DAL).
Moreover, Joby has signed a $131 million contract with the U.S. Air Force, and the FAA has agreed to allow Joby to start testing its aircraft. Finally, Joby plans to start providing service in the UAE by early 2026.
On the date of publication, Larry Ramer 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