During the recent period, the promising realm of flying car stocks has faced a phase of correction and consolidation akin to a pre-flight check before taking off into the skies of commercialization.
The upcoming commercialization of Electric Vertical Takeoff and Landing (eVTOL) aircraft by 2025 positions the industry for growth catalysts, such as certification completion and manufacturing operations expansion in the near future.
As we fast forward to the long-term horizon, envision the early movers of today potentially becoming monumental value generators by 2050, with market size estimates soaring to a staggering $9 trillion. Currently, a window of opportunity beckons with the potential for doubling investments before the year curtains close.
EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) has already witnessed its stock value double in the preceding 12-month cycle. Anticipate this bullish momentum to persist as the commercialization of eVTOL aircraft materializes, echoing gradual operational scale-ups in impending quarters.
Positive tidings accompany EHang as it secures a production certificate from the Civil Aviation Administration of China for its EH216-S eVTOL aircraft, setting the stage for mass production and revenue upsurge in the quarters ahead. The company also boasts a suggested retail price of $410,000 per eVTOL for international markets.
EHang’s global presence extends to the UAE, with Wings Logistics Hub committing to the purchase of 100 units of the EH216 series eVTOLs. In Europe and Asia, the company has conducted extensive trial flights, signaling a trajectory poised for remarkable growth in the forthcoming quinquennium.
Joby Aviation (JOBY)
Joby Aviation (NASDAQ:JOBY) charts a corrective course with a 23% downturn in the past half-year, offering astute investors a golden chance to accumulate before the stock soars into the stratosphere. Despite the recent correction, positive business developments underpin optimistic sentiments within the market.
In a notable feat, Joby clinched the coveted title of becoming the inaugural eVTOL developer to secure military airworthiness approval in 2020. The company is set to dispatch two aircraft to MacDill Air Force Base in 2025 under a $131 million contract with the U.S. Air Force, an early-mover advantage fortifying its prospects in the defense segment.
Moreover, Joby strategically acquired a manufacturing facility in Ohio, with the capacity to produce up to 500 eVTOLs annually, bolstering its operational scale-up endeavors. Progress in the certification process by the U.S. Federal Aviation Authority positions Joby on track for U.S. commercial operations in 2025, with eyes on the UAE as the primary international market for commercialization.
Archer Aviation (ACHR)
Archer Aviation Inc: A Skyward Trajectory for Investors
Setting the Stage for Growth
Archer Aviation (NYSE: ACHR) has charted a course that has remained steady, if not slightly downward, in the past six months. While some may see this as a cause for concern, astute investors recognize this as an opportune moment for accumulation. It’s akin to a skilled pilot adjusting altitude for optimal flight path.
Positioned for Takeoff in 2025
Archer is on the cusp of a significant milestone – the commercialization of electric Vertical Takeoff and Landing (eVTOL) aircraft in the United States by 2025. With impending Federal Aviation Administration (FAA) for-credit testing looming, once cleared, ACHR stock is poised to soar to new heights like a bird taking flight at dawn.
Global Expansion Through Strategic Partnerships
Undeterred by domestic challenges, Archer has set its sights on global horizons through strategic alliances. Collaborating with Falcon Aviation, the company plans to establish a vertiport network in Dubai and Abu Dhabi as a precursor to launching operations in the United Arab Emirates by 2025. This strategic leap will be followed by an ambitious foray into the Indian market by 2026, much like a daring explorer charting new territories.
Backed by Billions in Orders
Despite the current stock performance, Archer has a formidable order backlog of $3.5 billion, a financial runway that promises to expand even further in the coming months. This backlog not only provides stability but also lays the foundation for robust growth over the next half-decade, akin to a solid infrastructure supporting a towering skyscraper.