Revolutionizing Transportation: Flying Car Stocks, ETFs, and the Future of Smart Mobility in 2023
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Joby Aviation displayed one of its S4 aircraft outside the New York Stock Exchange on 11 August 2021, the day of the company's initial public offering. MICHAEL NAGLE/BLOOMBERG/GETTY IMAGES
By Gael Amouyal, Deeptech Expert
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What is going on?
As we venture into the unfolding landscape of 2023, the electric vertical takeoff and landing (eVTOL) market is emerging as a realm of unprecedented potential. Stocks within this pioneering industry are currently experiencing a surge that can only be described as electrifying. The prospect of imminent commercialization has sparked significant interest, with predictions envisioning the global flying car market reaching an astounding $18 billion by 2030, escalating to an extraordinary $1 trillion by 2040 and an astonishing $9 trillion by 2050. Brace yourselves for a dynamic journey ahead as the flying car market reveals its capacity for value creation on an extraordinary scale.
While the initial price tags may give pause to immediate adoption, a recent correction in flying car stocks suggests a strategic opportunity for astute investors to invigorate their portfolios.
However, this exhilarating trajectory into the future comes with a prudent caveat. The flying car market is not for the faint of heart, as it entails high risks and uncertainties that soar alongside the promise of groundbreaking innovation. While some herald a revolution, skeptics contend that the technology is not yet ripe for widespread adoption.
Now, fasten your seatbelts as we introduce possible stocks that stand out as the champions of adrenaline-pumping speculation in the flying car realm, accompanied by a cautionary tale to ground your expectations.
Smart Transportation and Technology ETF (MOTO):
Embark on an electrifying investment journey with the SmartETFs Smart Transportation and Technology ETF (NYSEMKT: MOTO). MOTO is meticulously crafted for investors seeking the thrill of the fast lane in transportation evolution. This high-octane ETF is designed to invest in companies at the forefront of revolutionary changes, encompassing autonomous vehicles, flying taxis, electric powertrains, and transportation as a service. Unlike traditional transportation ETFs, MOTO is engineered for speed, positioning itself as a tech-centric powerhouse ready to propel portfolios into the future. For investors eager to ride the wave of industry innovation without concentrating capital on a single speculative company, MOTO stands as the golden ticket to a diversified and electrifying investment experience.
Joby Aviation (JOBY): Jet into the Future
Joby Aviation (NYSE: JOBY) stands as the high-octane leader in the eVTOL aircraft sector, offering investors a compelling long-term opportunity. With strategic decisions such as the selection of Dayton, Ohio, as its base and a collaboration with automotive powerhouse Toyota (NYSE: TM), Joby showcases its visionary approach. Boasting an initial production capacity of 500 eVTOLs annually, Joby is poised to break the sound barrier in industry growth.
Soaring through the Federal Aviation Administration (FAA) certification process with an impressive advanced completion, Joby is not merely cruising but accelerating toward its goals. CEO JoeBen Bevirt's optimism is contagious, emphasizing breakthroughs in essential systems. With milestones including delivering a test Advanced Air Mobility aircraft to the Air Force and piloted test flights of an electric air taxi, Joby is positioning itself as the daredevil among today's flying car stocks to consider.
Archer Aviation (ACHR): Unleash the Midnight Beast
Archer Aviation (NYSE: ACHR) is capturing attention as it embarks on a mission to revolutionize air taxi services particularly in India. This strategic collaboration with InterGlobe aims to address the pressing traffic issues in India, where travel time by car can currently take be impossible. Archer's innovative approach is poised to transform this challenging landscape, offering the potential to reduce commute times dramatically.
Investors are eagerly anticipating Archer's bold aspirations for a commercial flight launch in 2025. Despite reported net losses and expenses, the company's advancements in implementing air taxi services in both the United Arab Emirates (UAE) and India have captured the attention of thrill-seekers, sparking heightened excitement in the aviation sector. Brace for impact, as Archer Aviation boldly takes its place as a riveting addition to the roster of flying car stocks worthy of consideration.
EHang (EH): Will it Soar or Stumble?
In the heart of the action is EHang (NASDAQ: EH) is pushing the boundaries of innovation. However, this aerial thrill ride is not without its challenges, as EHang struggles to find the perfect product-market fit for massive scale. The twists and turns of China's economic challenges, fueled by the Covid-19 pandemic and property debt crisis, add turbulence to EHang's future growth. Investors, fasten your seatbelts; this journey might get bumpy.
Hindenburg Research dropped a badly report which look like a bombshell on EHang, casting doubts on its credibility. Questions about fake revenue and the company's trustworthiness hang in the air like a cliffhanger. Investors now face a nail-biting choice with EHang, a company caught in the crossfire of regulatory advancements, lower stock prices, and a trend where transportation startups allegedly mislead investors. It's a rollercoaster of uncertainty, making EHang one of those flying car stocks you might want to consider unstrapping from your portfolio.
As EHang gears up for its Q3 earnings, analysts predict a revenue adrenaline rush of $2 million. But with a projected GAAP earnings-per-share (EPS) loss of 15 cents, the question remains: will EHang soar triumphantly or face a stomach-churning nosedive? Brace yourselves; it's going to be a wild ride.
Conclusion
The flying car market is transitioning from a dream to a riveting reality hurtling toward us at breakneck speed. Joby Aviation and Archer Aviation are bold contenders in this high-stakes race, offering investors a front-row seat to innovation. Meanwhile, EHang's rollercoaster journey reminds us of the thrill and risks of this daring venture. And for those hungry for more excitement, MOTO beckons with promises of a turbocharged ride into the future of smart transportation. Buckle up, investors; the future of transportation is unfolding in thrilling, unexpected ways!