Future of Flight: 3 Stocks in the Aerial Car Market With Huge Potential
Despite the sell-offs in the broader indices like the S&P 500, the potential of aerial car stocks holds steady. These companies are pioneering a new era of aerial transportation. There are numerous possible applications of this technology, ranging from warehouse operations to search and rescue missions.
An appealing fact about these flying car stocks is that most mainstream investors haven’t yet realized their potential. This then gives an advantage to those who are willing to take a risk on these emerging companies and may benefit from multi-bagger returns later down the line.
So here are the best aerial car stocks to consider for November.
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EHang (EH)
Source: Suwin / Shutterstock.com
EHang (NASDAQ:EH) is known for its autonomous aerial vehicle technology. The company has been showcasing urban air mobility solutions globally, gaining regulatory approvals in several jurisdictions.
There’s good reason for investors to feel bullish on EH stock, as it’s on the brink of a significant achievement, with industry analysts predicting a move toward profitability shortly. Analysts anticipate EHang to break even roughly two years from now, expecting the company to incur its final loss in 2024 before generating positive profits in 2025. This projection is based on an optimistic average annual growth rate of 102%.
EH is one of the few flying car stocks that may reach breakeven profitability in the short term, thus making it one of those picks to consider.
Geely (GELYF)
Source: klyaksun / Shutterstock
Geely (OTCMKTS:GELYF), a global automotive giant, owns Terrafugia, a pioneer in flying cars. Terrafugia aims to commercialize one of the first flying cars, blurring the lines between personal automobiles and aircraft.
There’s good reason to remain optimistic about GELFY stock, too. The Terrafugia Transition, a roadable flying car, has received FAA airworthiness certification but faces uncertainty in mass production due to layoffs and a planned move of operations to China. The vehicle, designed to fly at a maximum speed of 95 knots, is yet to receive roadworthiness approval from the National Highway Traffic Safety Administration (NHTSA), with challenges foreseen in extensive crash testing.
But all this uncertainty means that GELFY trades at a discount. Its price-to-sales ratio is tiny at just 0.50 times earnings. This makes it one of the most undervalued aerial car stocks on this list.
Lilium (LILM)
Source: T. Schneider / Shutterstock.com
Lilium (NASDAQ:LILM) based in Germany, is known for its electric vertical takeoff and landing (eVTOL) aircraft. The company’s distinctive design approach sets its aircraft apart from competitors, with many small electric engines allowing efficient transition from vertical takeoff to forward flight.
There was some excellent news for LILM investors that was posted to the market in October. It had started assembling the electric propulsion system for its Lilium Jet at its facility in Germany, marking a significant step towards the jet’s industrialization.
Institutional investors have also started buying up LILM shares. For example, Vanguard Personalized Indexing Management LLC purchased a new position in LILM in the 2nd quarter, acquiring 23,736 shares valued at about $42,000. Various other institutional investors and hedge funds have also recently modified their holdings in Lilium, reflecting institutional interest. With these factors considered, it’s, therefore, one of those aerial car stocks to buy in November.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.
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