close
close

The 3 best flying car stocks to buy in July 2024

The 3 best flying car stocks to buy in July 2024
The 3 best flying car stocks to buy in July 2024

It’s time to buy some of the best flying car stocks cheap. If all goes well, the market for flying car stocks could be a trillion-dollar opportunity, according to JPMorgan. It could be worth about $3 trillion by 2040, when flying cars are used in cargo and military applications. And all this while dozens of companies – from China to the US to Europe – are getting flying cars off the ground.

China, for example, has been extremely supportive of the development of flying cars and has given companies the green light to develop them. In addition, according to The EconomistPrime Minister Li Qiang mentioned the “low-lying economy” as a potential new driver of GDP growth.

Even better: “The domestic market is about to experience an unprecedented boom,” said Huazhi Hu, CEO of eHang Holdings, in a conference call on quarterly results.

And if the flying car market really takes off, we could be in for a multi-trillion dollar opportunity. Here are just a few of the best flying car stocks to buy.

eHang Holdings (EH)

Flying taxi or car drone – EHang 216 exhibited by Prestige Image Motor Cars at the Indonesia International Motor Show (IIMS) 2023 at JIExpo Kemayoran. EH share

Source: Toto Santiko Budi / Shutterstock.com

Oversold at $14.12, eHang holdings (NASDAQ:EH) is one of the best flying car stocks to buy and hold.

First, Morgan Stanley has just upgraded the stock to Overweight, with a price target of $27.50. “We view EHang as a pioneer in the urban air mobility (UAM) market – with the world’s first (type certificate) awarded, validated products and access to a multi-trillion dollar (total renminbi) market in China,” the company said, according to InvestorPlace.com.

Second, given the measures China is taking to support low-altitude economies, “the domestic market is now poised for an unprecedented boom,” said CEO Huazhi Hu, as I noted above.

“In response to the central government’s initiative, nearly 30 provincial and municipal governments in China have rolled out their own low-altitude economic development plans, accelerating the growth of the industry,” he added.

Third, thanks to this support, the company reported shipments of 26 units compared to 23 in the previous quarter. And with higher sales expected in the future, the company expects second-quarter sales to increase by about 800% year-over-year.

XPeng (XPEV)

XPeng (XPEV) car logo at the Shanghai International Automobile Industry Exhibition

Source: THINK A / Shutterstock.com

XPeng (NYSE:XPEV) is also starting to take off with several catalysts. First, its X2 has just completed its maiden flight at Beijing Daxing International Airport. Second, the company aims to commercialize flying cars by the end of the year. And third, China’s Guangzhou will invest more than $1.4 billion in the “low-flying economy” by 2027, says Nikkei Asia.

In addition, according to XPeng AeroHT, a subsidiary of XPeng, there are plans to deliver flying cars to customers starting in 2026. According to Brian Gu, the company’s co-president, the cars will be available for pre-order later this year and will be available at prices starting at $138,000 each.

And earnings weren’t too bad either. Adjusted loss per share of 21 cents on revenue of $906.9 million was far better than expectations for a loss of 27 cents on revenue of $868.1 million. And that’s all thanks to rising demand for electric vehicles.

Joby Aviation (JOBY)

Logo of Joby Aviation. Joby Aviation is an American company developing an electric aircraft for air taxi services.

Source: Iljanaresvara Studio / Shutterstock.com

There are also Joby Aviation (NYSE:JOBY), which consolidated at $4.87.

According to the company, air taxis could become a reality by 2025. Supported by a $400 million investment from Toyota (NYSE:TM) and an investment of 60 million dollars from Delta Airlines (NYSE:DAL), JOBY hopes to jumpstart the flying car race. In addition, JOBY will deliver two aircraft to MacDill Air Force Base in 2025 as part of its $131 million contract with the U.S. Air Force.

Better yet, the company has completed Phase 3 of its certification process. It is now working to complete its credit review with the Federal Aviation Administration (FAA).

The company also acquired the autonomy division of Xwing, an industry leader in developing autonomous technology for aviation. Not only does JOBY expect this to bring it closer to “fully autonomous operations in the future,” but it also believes it will play a role in contracts with the U.S. Department of Defense.

At the time of publication, Ian Cooper had no position (either directly or indirectly) in any securities mentioned. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.

At the time of publication, the responsible editor had neither directly nor
indirectly) positions in the securities mentioned in this article.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advice since 1999.

Leave a Reply

Your email address will not be published. Required fields are marked *