The latest buzzword that has investors excited worldwide is eVTOL (Electric Vertical Take-Off and Landing) aircrafts. Promising to revolutionize air travel, eVTOL is predicted to be the next big thing in the coming years. As we step into 2024, let’s take a look at some eVTOL stocks that are poised to soar in the market.
A Brief Overview
An eVTOL combines the vertical abilities of a helicopter with the eco-friendliness of zero-emission technologies. As the world grapples with worsening urban congestion and mounting environmental concerns, the eVTOL industry has emerged as a beacon of hope, offering innovative and sustainable solutions for mobility.
Analysts predict that the eVTOL aircraft market could reach a staggering value of nearly $35 billion by 2030, indicating significant market growth in the coming years. Numerous companies are working tirelessly to revolutionize air mobility and make eVTOLs a reality.
The Investment Potential
The eVTOL market is still in its early growth stage, and the investment potential is immense. The global flying car market is expected to grow by billions in this decade. But that’s just the tip of the iceberg. The market size is predicted to balloon to $1 trillion by 2040 and further to a mind-boggling $9 trillion by 2050.
Investment in eVTOL stocks has already been quite rewarding for early adopters, and the year-to-date (YTD) surge is a testament to that. However, the growth story of eVTOL is far from over. As more companies inch closer to commercialization, the market for eVTOL stocks is predicted to experience significant tailwinds, likely to last into the coming decades.
Navigating the eVTOL Investment Terrain
Like any emerging industry, eVTOL has its share of challenges. Intermediate phases of correction are expected, and the path to making flying cars a daily reality may have its fair share of turbulence. However, the best companies in the business are likely to weather these storms, survive, and create immense value for their investors.
Despite the challenges, the investment case for eVTOL stocks remains compelling. The current phase of correction and consolidation in the market presents a good opportunity for investors to accumulate these stocks. The period from 2024 to 2026 is likely to be characterized by commercialization and a robust intake of orders, potentially creating multi-bagger stocks from the industry.
Promising eVTOL Stocks to Watch Out for in 2024
Let’s turn our attention to some of the most promising eVTOL stocks that are set to take the skies in 2024.
1. Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) has made a splash in the eVTOL market with a remarkable 230% surge in its stocks for the YTD. The company’s business progress and the stock upside are likely to make the coming year equally exciting for investors.
Archer ended Q3 2023 with a robust liquidity buffer of $600 million, which is expected to support operations until commercialization in 2025. Furthermore, the company has already bagged a $142 million order from the U.S. Air Force and is expanding its footprint globally with partnerships in India and the United Arab Emirates.
2. Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is another eVTOL player to watch out for in 2024. Following a correction from its July highs, now is a great time to accumulate Joby stocks. The company is on track to commercialize flying taxis in 2025 and has a substantial cash buffer to support its operations.
Joby has also made significant strides in its FAA certification plans, with 84% of the plans already completed. The company recently tested its electric air-taxi in New York City and delivered its first all-electric air taxi to the U.S. Air Force, marking another significant milestone in its journey.
3. EHang Holdings (EH)
EHang Holdings (NASDAQ:EH) is an attractive eVTOL stock for the next few years. Despite a tumble due to a short call from Hindenburg Research, EHang stock is in recovery mode and still managed to clock a 50% increase for YTD.
In October, EHang successfully obtained certification from the Civil Aviation Administration of China for passenger-carrying unmanned aerial vehicle, which is a significant development in terms of revenue upside in 2024 and beyond. The company is also expanding its global presence, having conducted 39,000 trial flights in 14 countries across the Americas, Europe, and Asia.
Is eVTOL Investment Right for You?
While the eVTOL industry is still in its infancy, the risks associated with investing in eVTOL stocks are considerable. However, the potential for a significant upside is substantial.
If you’re willing to take on the risk, investing a small amount in eVTOL could be a great way to get in on the ground floor of a potentially game-changing industry. The recommendation is to limit your individual stock exposure to 5% or less of your overall portfolio. For those who are ready to embrace the future and are comfortable with the volatility that comes with it, eVTOL stocks could offer an exciting and potentially rewarding investment opportunity in 2024.