Will Flying Cars Produce Flying Stocks?

By Jason Bodner

Even those of us who weren’t around when “The Jetsons” first aired are very familiar with the cartoon that depicted a utopian future filled with futuristic inventions.

I was shocked to find out it only aired for one season initially, 1962-1963, with 24 episodes. More were made in the 1980s, which were more my time (barely).

The Jetson family of four lived in the sky with their robotic maid Rosie and their dog, appropriately named, Astro. I remember watching reruns after school and being fascinated by the cool technology that felt out of reach.

The show had video calls, robotic personal assistants, smartwatches, 3D printed food, and smart appliances. I certainly didn’t think we’d see any of that in my lifetime.

Well, here we are. George Jetson meet Nostradamus.

The show was amazingly accurate about all those things. The one thing it didn’t get right was the timing. We now use these futuristic inventions 50 years ahead of schedule – 2062 was when the show took place.

And we aren’t far from maybe the most far-fetched invention featured in the show… flying “cars.” The prototypes look a little different than the one George Jetson traveled to work in, but they aren’t that far from becoming reality.

Companies big and small are racing to develop the first viable flying car, or eVTOL (electric vertical take-off and landing aircrafts) as they are now called.

One of the companies in the race is named Jetson. I love it.

eVTOLs take off and land by going straight up and down, and they can hover – like helicopters and drones. They run on batteries and are so-far designed to carry two to six passengers, including a pilot.

Source: Hyundai Motor Group via Unsplash

Most of them look more like planes, which makes sense since they need to fly.

And while there’s still work to be done, it’s not too early to start thinking about the possibility of your own flying car… and the opportunities these airborne autos may provide for investors.

Coming Sooner Than You Might Think

If you’re wondering how big flying cars might be, consider that more than 400 startups are working on eVTOL production today.

And some of the big boys are also joining the race. Earlier this year, Volkswagen unveiled a working prototype for its electric flyer – Flying Tiger. Last year, Subaru showcased its “Air Mobility Concept” (check out that wild-looking thing below) alongside Honda’s HondaJet.

Image courtesy of Subaru

Tim Draper, a venture capitalist who was an early backer of Tesla (TSLA) and SpaceX, invested $3 million into a California-based startup called Alef Aeronautics. The company claims it will have a flying car on the market by… next year. It will set you back $300,000, so start dropping those pennies in the piggy bank today.

Alef’s timing might not be that far off. Last July, Alef revealed that its “Model A” flying car received legal permission from the Federal Aviation Administration (FAA) to test run the vehicle on the road and in the sky – and it’s the first company to do so.

Flying car showrooms are already being planned in Texas and Florida by another company called Aeroauto. They market themselves as the “premier eVTOL dealer in the USA” and plan to sell, service, and maintain eVTOL vehicles at their dealerships. The models are still in development, but they get points for thinking ahead.

One Chinese company, XPeng AeroHT, is taking preorders for its flying vehicle that both drive on land and detach into a flying module. The company hopes to begin mass production as soon as next year.

If these timetables hold – and that’s a big if with any emerging technology – transportation planners need to start thinking about traffic patterns in the sky as well on the roads.

Despite so many companies having their hands in this futuristic travel, there aren’t yet many publicly traded eVTOL companies. But we can run a few through my Quantum Edge system to see if any are worthwhile investments yet.

Not Yet Cleared for Takeoff

When you think of aircraft, Boeing (BA) is probably one of the first companies that comes to mind. Unfortunately, the company is better-known at the moment for failures, like disappearing planes and doors ripping off mid-flight.

Even so, Boeing is investing big in flying technology. In 2022, it pumped $450 million in Wisk, an aerospace manufacturer, and fully absorbed the company just a year later.

Boeing hopes to have Wisk’s autonomous flying taxis operating in Asia by 2030, and it is working on gaining approval to fly in the U.S. from the FAA.

Imagine being picked up by a flying Uber when you need a lift to the airport. I hope it would at least remove traffic uncertainty and eliminate the mad dash to get to the gate before the door closes.

Boeing reported first quarter earnings on April 24, and sales of $16.5 billion beat estimates by $620 million. Not surprisingly, though, its Commercial Airplanes revenue dropped 31% after its Boeing 737 MAX 9 was grounded for weeks.

BA is down almost 30% year to date, and as you would expect, rates poorly in my Quantum Edge system.

Source: TradeSmith Finance and MAPsignals.com

Its Quantum Score of 31 is pretty awful, brought down by its abysmal Technical Score of 23.5 and not much better fundamentals at 41.7.

We also see Big Money bailing as my system picked up nine sell signals (red bars below) just since March 1.

Source: MAPsignals.com

It’s possible that Boeing’s investment in spacecraft and flying taxis could move the needle in the future, but the data shows it’s a stock to steer clear of right now.

Joby Aviation (JOBY) is a California-based company that made headlines in 2023 after successfully testing an electric air taxi, and it plans to launch the service in 2025. JOBY is working with the FAA to gain certification, and is also talking with the U.S. Air Force and Army for potential military use of their eVTOLs.

Toyota Ventures – Toyota’s early-stage venture capital firm – took notice of Joby and backed it as far back as 2017. Toyota is now lending its high-volume manufacturing expertise as Joby broke ground on its Pilot Production Line for VTOL aircraft just this week.

JOBY seems to be heading in the right direction and has big-name investors jumping in, but the data doesn’t show the stock to be a buy… at least not yet.

Like Boeing, its Quantum Score is weak at 39.7, with even weaker fundamentals of 33.3. Sales growth is 0%… because there’s nothing to sell yet. Big Money isn’t jumping in yet either, with my system picking up just three buy signals since the company went public in Feb. 2021. The most recent signal showed up last July.

We’ll see where this stock goes once it sells flying cars, but JOBY isn’t cleared for takeoff just yet.

I ran a few other publicly traded eVTOL companies through my system, and the data was remarkably similar for Vertical Aerospace (EVTL), EHang Holdings (EH), and Archer Aviation (ACHR).

So while flying cars may become a reality sooner than we think, the data doesn’t support comfortably investing in these companies yet. The whole point of my system and data is to point us toward the highest probability of making money. Through years of use and data, I generally count on my system identifying winners seven out of every 10 times.

Analyzing the right data the right way is critical to hitting the high mark, and these companies don’t yet have the Quantum Edge trifecta I look for – best-in-market fundamentals, strong technicals, and Big Money flowing in.

They may hit it big one day, but putting your hard-earned money into them now is closer to speculation than it is to investing.

The odds are heavy in your favor if you stick with companies that have healthy growth, market leadership, and institutional support.

Like the ones in our Quantum Edge Pro portfolio. In fact, I recently recommended an impressive company that’s a leading supplier of innovative and advanced technology to enhance driving safety and convenience to both the automotive and aircraft industries. I wouldn’t be surprised if some of their products become part of the eVTOL race, too.

Unlike these other stocks, its fundamental ranking is one of the best in the market at 83.4.

Click here to find out how you can get in on this stock before it goes above my buy-up-to price.

Talk soon,

Jason Bodner
Editor, Jason Bodner’s Power Trends