3 flying car stocks that could be poised to go much, much higher

Electric vertical takeoff and landing (eVTOL) aircraft certainly present an intriguing opportunity for growth investors. The potential of these air taxis to completely transform urban mobility makes the various flying car stocks I’ll discuss in this article worth considering.

There are a number of keys to the long-term success of the eVTOL sector. Companies need to have plans in place to promote battery management and energy connectivity. $12.8 billion has been invested over 12 years and around 200 developers worldwide. eVTOLs promise faster and greener urban transport that can replace helicopters.

Exploring electric aviation stocks poised to revolutionize travel with cutting-edge, sustainable technologies makes sense right now. These companies promise to reshape air travel, offering greener alternatives to fossil fuels and significant growth potential. Investors looking at high-flying stocks should be aware that challenges will arise. However, the future is full of potential and substantial profits.

As for high-flying stocks, they also offer potential rewards for long-term investors. The market is expected to grow by 50.5% by 2040. Despite early-stage challenges, a thorough analysis has identified the top three stocks based on proof of concept, fundamentals and valuation. Although risky, these stocks may be worth considering for investors with a high risk tolerance.

Top Car Stocks: Archer Aviation (ACHR)

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Archer Aviation (NYSE:ACHR) successfully tested their Midnight eVTOL vehicle. They will build a facility that can accommodate the production of 650 units annually to start. In July, Stellar (NYSE:STLA) invested an additional $55 million in the company after a successful Midnight test flight, after previously investing $110 million in 2023. Archer also announced a new partnership with Southwest Airlines (NYSE:LUV) to develop airport operations in California.

Archer Aviation also secured FAA Part 135 certification in June. The Midnight aircraft, designed for short commutes, can carry six passengers and reached speeds of more than 100 mph during its first transition flight. Importantly, the UAE will allow Archer to begin air taxi services immediately after certification, making it a top choice among flying car stocks.

Archer Aviation shares fell 3.8% in early August, bucking broader market trends amid macroeconomic concerns. Investors will want to dive into the company’s Q2 revenue numbers for clues about how expected operating expenses and net losses might progress over time. In my view, as long as Archer stays on track, this is a flying car stock that could provide huge upside from here.

Joby Aviation (JOBY)

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Another leader in the eVTOL space, Joby Aviation (NYSE:JOBY) recently started its Australian certification process. The company has completed three FAA milestones with the goal of competing with helicopters by offering a quieter, zero-emissions aircraft for up to four passengers. The Australian approval process is supported by a US-Australia agreement. It is expected to streamline certification once Joby completes the final two FAA stages.

Shares of Joby Aviation rose 3.64 percent to $5.14 a share. This was after news of its application for certification for an electric air taxi in Australia. This move supports Joby’s global expansion, including certifications in Japan and the United Kingdom. The said air taxi is expected to have a speed of 200 mph, with zero emissions and low noise. It aims to revolutionize urban air mobility.

As of the first quarter, Jony has nearly $1 billion in debt-free cash, giving it about 2 to 2.5 years at its current annual cash burn rate of $371 million. Despite modest revenues of $1.1 million, the company’s 21% increase in cash consumption points to higher investments. Joby Aviation’s cash burn of $371 million, representing 10% of its $3.5 billion market cap, suggests it could raise more funds relatively easily.

Aerospace Vertical (EVTL)

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Vertical aerospace (NYSE:EVTL) second prototype achieved its first tethered hover. CTO Michael Cervenka discussed future flight tests and eVTOL goals. The transition to forward flight is a key milestone few eVTOLs have achieved. Cervenka highlighted the successful tethered flight of Vertical Aerospace’s VX4 as a key milestone, aiming for certification in 2026. Following approval from the UK Civil Aviation Authority, the company plans untethered tests leading to powered and wing-based flights. Regulatory challenges, including safety demonstrations and forward flight transitions, will be addressed in the coming months.

Bristol-based Vertical Aerospace is developing a four-passenger eVTOL similar to Joby’s. Founder Stephen Fitzpatrick’s $50 million investment underscores the commitment, with the VX4 forecast to launch in 2026. The company’s cash runway extends to mid-2025, but additional capital and potential dilution may be needed. EVTL shares, up 40% in six months, remain below $1, suggesting a cautious investment environment.

Vertical Aerospace will soon conduct propulsion tests on its advanced powertrain at its Vertical Power Center. These tests will ensure proper weight distribution, strength and structural integrity. After successful results, the company will switch to tethered flights. They will eventually move on to non-low speed testing after receiving a UK Civil Aviation Authority licence.

At the time of publication, the responsible editor had (either directly or indirectly) no position in the securities mentioned in this article.

At the time of publication, Chris MacDonald did not hold (either directly or indirectly) any position 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.