The past few weeks have brought forth a mix of favorable and disheartening news for flying car stocks.
While certain companies have secured their initial official certificates from the Federal Aviation Administration to begin flight testing, others have temporarily suspended their testing because of battery-related concerns.
As competition in the field continues to heat up, the frontrunners among the most promising companies are emerging. With the latest updates at hand, investors are now able to select flying car stocks that offer the highest growth potential.
Archer Aviation Inc (ACHR)
Current technological limitations, particularly concerning batteries, have recently led to the delay of two projects. However, there is a glimmer of hope for investors in flying car stocks in the form of Archer Aviation’s (NYSE:ACHR) contract with the U.S. Air Force.
Archer Aviation is the latest electric vertical takeoff and landing company to secure funding through this Air Force initiative.
Given that several eVTOL companies are grappling with a sluggish certification process for commercial use due to potential conflicts with military endeavors, Archer’s collaboration with the U.S. Air Force could provide substantial advantages in the market.
Now the company’s entry seems to have no obstacles as the company has just resolved its Boeing lawsuit, opening up opportunities for a new $215 million funding round.
Archer’s premier eVTOL design, the Midnight, accommodates four passengers and a pilot, boasting a payload exceeding 450 kilograms and a maximum range of 161 kilometers.
Looking ahead, Archer envisions the potential value of its Air Force program reaching up to $142 million. However, The Air Current’s Elan Head points out that the Air Force has presently committed an initial sum of only $1.3 million.
Joby Aviation (JOBY)
Another company that has achieved significant progress is Joby Aviation Inc (NYSE:JOBY), which holds Intel and Delta Air Lines among its main shareholders.
The Federal Aviation Administration issued Joby Aviation an official certificate to start flight testing. The company aims at launching its first electric flying car and a commercial air taxi service within a 1-2 year timeframe.
The reason for such acceleration is the same — the contract with the U.S. Air Force, which is expected to get the first vehicle prototype from Joby in 2024.
As part of its Agility Prime initiative, the agency allocated $131 million to the project, with the goal of advancing U.S. technological capabilities and utilizing these vehicles for military applications.
The construction of the pilot production line received support from automaker Toyota Motor Corp, involving a $400 million investment and technological assistance to the startup.
Joby Aviation makes strides not only in the US. The Dubai authorities are showcasing its vehicle prototype as a prospective contender for an upcoming flying taxi initiative set to commence by 2025.
The complete certification of these vehicles is targeted for 2024, followed by large-scale production in 2025.
Guangzhou Automobile Group (GNZUF)
The only significant competitor to American companies in the passenger aircraft market is China. The state-owned company and major car manufacturer — Guangzhou Automobile Group (OTCMKTS:GNZUF), has recently presented a prototype of its all-in-one flying car known as Gove.
The vehicle Introduces a groundbreaking innovation in the transportation industry, seamlessly merging the capabilities of both a flying aircraft and a traditional car. This cutting-edge design centers around the concept of vertical takeoff and landing, utilizing six electric motors with propellers.
What truly sets this vehicle apart is its modular composition. Comprising a self-propelled ground platform and a detachable cabin, this hybrid product enables a passenger to travel through the skies.
As the upper flying pod disengages from the lower base vehicle, it swiftly transports the passenger to their desired destination. Meanwhile, the autonomous wheeled base embarks on an independent journey back to its designated docking station.
A recent research report from the German consultancy firm Roland Berger predicts that by 2030, countries within the Asia-Pacific region are poised to embrace advanced air mobility services.
Looking further ahead to 2050, an estimated 100,000 flying cars will be in operation worldwide, serving as air cabs, airport shuttles, and intercity airlines.
The report also forecasts that the revenue generated from air mobility services in this region will surge to USD 36.9 billion by that time, making flying car stocks one of the promising investment category.
On the date of publication, Julia Magas 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.