Flying car stocks are soaring since Alef Aeronautics received a special airworthiness certificate from the Federal Aviation Administration for its Model A. The certification will allow the flight of its vehicle in limited locations for the purposes of exhibition, research and development.
The Model A is a road-legal passenger car capable of vertical takeoff and forward flight. It is expected to boast a driving range of 200 miles and 110 miles of flight while carrying 2 passengers. Deliveries are expected to begin in 2025.
The news means that the discussion of flying car stocks has heated up again, causing investors to reconsider shares in the sector.
Joby Aviation (JOBY)
Joby Aviation (NYSE:JOBY) is a Santa Cruz-based firm developing electric vertical takeoff and landing (eVTOL) aircrafts. It plans for commercial passenger flight, and very recently announced that it has submitted its certification plans to the FAA.
Joby Aviation continues to make strides in that regard. It was the first eVTOL firm to pass stage 1 of the certification process, and replicated the milestone achievement again when it completed stage 2 in February ahead of its competitors.
As mentioned, Joby Aviation plans to begin commercial service in cities across the globe. It seems highly likely that Seoul, Korea will be among those cities since Joby received a $100 million investment from SK Telecom (NYSE:SKM), the country’s leading telecom firm.
The company also received an FAA certification to allow flight of its first aircraft to be built on its Pilot Production Line. Expectations are that Joby Aviation will deliver the first ever eVTOL to a customer in 2024. It will be part of a contract with the U.S. Air Force that will see the company move to Edwards Air Force Base in 2024. That contract could be worth up to $131 million for Joby Aviation, and realistically opens the door for greater collaboration with the military and associated revenues.
Archer Aviation (ACHR)
Archer Aviation (NYSE:ACHR) is another eVTOL firm that investors should consider as FAA certifications push the prospect of new frontiers in aviation closer.
Like Joby Aviation, Archer is currently exploring an opportunity to work with the U.S. Department of Defense. It recently formed a government services advisory board to support the planned expansion of an already extant relationship between the two.
Archer’s Midnight aircraft has the ability to carry a payload of 1,000 pounds. Understandably, this has drawn significant interest from the Department of Defense.
Meanwhile, Archer’s relationship with Stellantis (NYSE:STLA) continues to grow. The strategic manufacturing agreement between the two is progressing, as construction is well underway for the new Georgia manufacturing facility.
EHang (NASDAQ:EH) is one of the leading companies in the urban air mobility (UAM) industry. The company’s autonomous aerial vehicles (AAVs) are designed with urban flight in mind. Future applications include passenger transportation, logistics, and smart city management. Its vehicles are certified by the FAA and the Civil Aviation Administration of China.
The company conducted 8,800 trial flights in 19 trial spots across 17 Chinese cities and sites. During this past quarter, EHang deliver 6 AAVs to the Fengshan Tourism Investment Development Co, with future orders for at least 140 additional units starting with 20 units delivered in 2025. The remaining 120 are to be delivered in the next 5 years.
Impressively, EHang is already producing revenue with the USD equivalent of $3.2 million this year in Q1. That represented an increase of 41.6% YoY. Even more reassuring, the quarter had a net loss of $12.7 million, which is a 21% improvement.
On the date of publication, Alex Sirois did not have (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.