Flying cars, also known as “air taxis” or “urban air mobility vehicles,” rely on advanced technology to take to the skies. They typically utilize electric propulsion systems, including electric motors and batteries, to power vertical takeoff and landing capabilities. Given the upside that this technology offers, many investors are looking for the hidden-gem flying car stocks to own for the long term.
These vehicles often feature lightweight materials such as carbon fiber to maximize efficiency and range. Additionally, sophisticated flight control systems, including sensors, GPS, and autonomous navigation technology, enable safe and precise flying.
Some flying cars are designed with tilt-wing or tilt-rotor configurations, allowing for seamless transition between vertical and horizontal flight modes. Overall, these technologies are revolutionizing personal transportation, offering fast and efficient travel in urban environments.
The dream of flying cars is becoming closer to reality, as evidenced by a company unveiling a NASA-proven propulsion system. Despite being a staple of futuristic visions like “Blade Runner” and “The Jetsons,” flying cars have remained elusive. This technology promises to change that perception.
With a propulsion system validated by NASA, the prospect of flying personal transportation is more tangible. This advancement brings the possibility of efficient, safe, and practical flying vehicles closer to realization. While challenges remain, such as regulatory hurdles and infrastructure development, the prospect of flying cars entering mainstream use is no longer just science fiction.
Following these advancements, it’s important to consider how the economy is influencing their chances of success. The CPI increased by 3.1% over the past year, indicating a stable yet growing economy. This outcome suggests a favorable environment for the pioneers of urban air mobility.
In this article, we look at these three hidden-gem flying car stocks that offer exposure to this next-gen technology.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is a pioneering company in the field of electric vertical takeoff and landing aircraft. They are developing advanced flying cars for urban air mobility, aiming to revolutionize transportation. Joby’s innovative designs and NASA-proven propulsion systems promise to make personal air travel a reality in the near future.
Joby Aviation stock recently gained after the company announced a significant milestone as the Federal Aviation Administration (FAA) accepted its certification plan for the electric propulsion system on its eVTOL aircraft.
The accepted plan covers various components, including motors, gearboxes, and propeller systems, showcasing the company’s innovative distributed electric propulsion system developed in collaboration with NASA. The five-seat air taxi features six propellers powered by independent electric propulsion units, promising a groundbreaking leap in urban air mobility.
Back in November, JOBY shares surged following the company’s third-quarter earnings report. The report revealed that stage 3 of certification had reached 84% acceptance by the Federal Aviation Administration, the process that was finalized in February this year. Overall, Joby Aviation is considered one of the most recognized hidden-gem flying car stocks at the moment.
EHang (EH)
EHang (NASDAQ:EH) is a Chinese manufacturer of autonomous aerial vehicles for passengers. The company’s business plan is based on the projection that the urban air mobility market will hit up to $1 trillion by 2040.
EHang recently reported 248% year-over-year revenue growth in Q3 2023. The quarter-over-quarter revenue growth came in at 186%.
The EVTOL company also recently revealed a suggested retail price of $410,000 for its EH216-S pilotless passenger-carrying electric vertical takeoff and landing aircraft in global markets outside China, starting from April 1, 2024.
In 2023, the EH216-S achieved a major milestone by obtaining the world’s first Type Certificate and Standard Airworthiness Certificate for pilotless passenger-carrying eVTOL aircraft from the Civil Aviation Administration of China.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is a major flying car company in the field of electric vertical takeoff and landing aircraft. With a focus on urban air mobility, Archer aims to provide efficient and sustainable aerial solutions. Backed by significant investments, including United Airlines (NASDAQ:UAL), Archer is advancing towards FAA certification and commercial operations.
The company recently raised some eyebrows by saying it plans to introduce urban air mobility services in Los Angeles by 2024. Archer Aviation will collaborate with the mayor’s office, the L.A. Department of Transportation (LADOT), and Urban Movement Labs, among others.
The company recently secured a $215 million investment, with backers including Stellantis (NYSE:STLA), Boeing (NYSE:BA), United Airlines, and ARK Investment Management LLC (NYSEARCA:ARKK), bringing their total funding to over $1.1 billion. This strengthens Archer’s path to FAA certification and commercial operations in 2025.
Moreover, their Midnight aircraft receives an FAA Special Airworthiness Certificate, expected to commence flight testing and become the first eVTOL delivered to a customer under contracts with the Department of Defense (DoD). Stellantis leads the investment round as a long-term strategic partner, accelerating investment under existing strategic funding agreements.
Archer needs cash to fund its operations as it projects GAAP operating expenses to range from $100 million to $110 million in Q4 2023.
On the date of publication, Shane Neagle 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.