Stocks to buy

The search for top flying car stocks is on. Growth investors initially piled into this industry last year, with many top players in this potential trillion-dollar industry (by 2040) seeing sharp gains.

Unfortunately, many top electric vertical takeoff and landing (eVTOL) companies have seen stark declines this year as growth investors eye other high-growth sectors such as AI. That’s how trends work.

But for long-term investors looking to grab a piece of this potentially massive space before it explodes, getting in at lower prices can be key. These are three of the top companies in this space that are moving very quickly toward commercial viability and may be worth considering as portfolio additions.

Joby Aviation (JOBY)

Source: CNBC.com

Recently achieving various milestones with its strong Q1 results, Joby Aviation (NYSE:JOBY) is certainly a top flying car stock to consider. The company is currently engaging in its final tests with the Federal Register. These tests could make Joby the first company in its sector to garner stage 4 certification. The company is hopeful that its system-level test plans will allow for commercial service by 2025. While that timeline may be aggressive, it’s certainly one that should at least raise investor interest in this company relative to its peers.

There have been some insider selling concerns; cash burn is always a concern in this space. However, Joby has among the best financial backing in this space and has been pursuing various ventures in the military cargo space, suggesting substantial growth potential from multiple lines of business.

The company’s share price has settled down and has been trading relatively rangebound recently. This comes as investors await announcements of future developments with the company.

I think Joby is poised for long-term growth as a potential first-mover in this space, given the company’s focus on achieving regulatory standards. The company has already achieved FAA certification for its prototypes and established a California facility with a 25-aircraft annual production capacity, securing contracts and setting the stage for significant expansion.

Archer Aviation (ACHR)

Source: Aerospace Trek / Shutterstock.com

Archer Aviation (NYSE:ACHR) is another top eVTOL player to consider. Another company I’d put in the early-mover bucket, Archer, stands ready to capitalize on strong growth in the nascent flying car industry. Positive business strides include advancing U.S. certification and forging key partnerships in the UAE, India, and Korea, promising significant revenue growth ahead.

Importantly, car maker Stellantis (NYSE:STLA) previously injected an additional $55 million into Archer Aviation. It advanced its partnership in eVTOL development and manufacturing. This strategic funding builds on Stellantis’ role in supplying advanced manufacturing technology and expertise alongside Archer’s specialization in eVTOL and electric powertrain design and certification. Stellantis previously became Archer’s largest shareholder through a series of investments totaling $193 million since last year.

The company’s Archer Midnight eVTOL is powered by lithium-ion batteries. It can deliver 142 KWh and up to 1,300 KW, completed a recent “transition flight.” The flight showed its ability to take off vertically and land in the same direction as well. Designed for urban transport, it can accommodate up to 4 passengers and a pilot with a 1,000 lb weight capacity. The model is best for 100-mile ranges and 20-mile trips. This midnight aircraft appears poised to serve as a rapid shuttle in crowded city areas. It can charge in about 10 minutes.

EHang Holdings (EH)

Source: Suwin / Shutterstock.com

EHang (NASDAQ:EH) is a China-based leader in autonomous aerial vehicles. Despite recent controversies, the company remains poised for growth with one of the lowest valuations among flying car stocks. The company has seen consistent progression in its product development, with DHL-Sinotrans for EH216 delivery trials. EHang has also partnered with Bao’an district for vehicle assembly, delivering 13 aircraft in Q3 last year. Analysts expect EH stock to potentially reach $72.87 per share by 2025, from its current price near $14. That’s some big upside if things work out as expected.

EHang completed its maiden passenger flights with its EH216-S eVTOL in Wencheng, China, boosting local tourism. The company delivered 27 out of 30 ordered aircraft, using one for sightseeing at Tianding Lake. The company noted a surge in global orders post-certification and production. This is a trend I could see play out with the other top eVTOL stocks on this list.

EH216-S achieved its certification in China for passenger operations. The certification is part of Wencheng’s low-altitude tourism initiative. This marks a big milestone for pilotless eVTOLs. EHang aims to build a UAM ecosystem in partnership with the Wencheng County Government for tourism and emergency services.

For those bullish on the Chinese flying car market, EH stock is one to consider.

On the date of publication, Chris MacDonald 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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