eVTOL is short for electric vertical take-off and landing aircraft, a new category of aircraft that could revolutionize urban air mobility. These aircraft utilize electric motors and batteries for propulsion instead of traditional combustion engines, allowing them to hover, take off, and land vertically without needing runways or long taxiways.
Proponents of eVTOLs envision this technology as a key component of urban air mobility networks of the future that could potentially provide on-demand air taxi services, medical transportation, cargo delivery, and more. These aircraft could also offer the potential for quieter, more sustainable, and potentially fully automated air travel.
Numerous companies are developing their own eVTOL technologies that could disrupt this space in the coming years and pave the way for what air mobility looks like decades from now.
The global eVTOL aircraft market size was valued at more than $2 billion in 2024 and is expected to grow at a compound annual growth rate of 54.9% in the coming years, achieving a potential valuation of $28.61 billion by 2030. Advancements in battery technology including increased power, lighter weight, and faster charging times are crucial for the viability of eVTOLs.
The North America and the Asia-Pacific regions are densely populated urban areas that are among the key addressable markets for eVTOL aircraft.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Joby Aviation (NYSE:JOBY) | $13.0 billion | 0.00% | Airlines |
| Archer Aviation (NYSE:ACHR) | $6.0 billion | 0.00% | Aerospace and Defense |
| EHang (NASDAQ:EH) | $702.4 million | 0.00% | Aerospace and Defense |
| Vertical Aerospace (NYSE:EVTL) | $537.0 million | 0.00% | Aerospace and Defense |
| Boeing (NYSE:BA) | $169.8 billion | 0.00% | Aerospace and Defense |
5 best eVTOL stocks to invest in
eVTOL companies are actively developing and testing their aircraft. Many companies are already working with aviation authorities to obtain the necessary certifications and approvals for commercial operations.
As eVTOLs become more prevalent, companies are also collaborating with municipalities to plan and develop vertiports, which are essentially landing pads for eVTOLs. Here are five top eVTOL stocks to consider if you want to invest in the future of this industry.
1. Joby Aviation
NYSE: JOBY
Key Data Points
Joby Aviation (JOBY +0.07%) is a California-based transportation company developing eVTOL aircraft intended for use as a fast, quiet, and convenient air taxi service. The company aims to begin commercial air taxi flights in late 2025 or early 2026, with its first launch planned in Dubai and potentially other locations shortly thereafter.
Joby Aviation has made record progress on four of the five stages required by the Federal Aviation Administration (FAA) to certify its aircraft for commercial passenger use in the U.S. and expects Type Inspection Authorization (TIA) flight testing to begin in the coming months. Joby has a six-year exclusive operating agreement as Dubai’s air taxi service, with plans for a network of vertiports, including one at the DXB airport and others in Palm Jumeirah, Dubai Downtown, and Dubai Marina.
Joby has also been conducting extensive flight testing, including demonstrations in urban settings and with strategic partners like Delta Air Lines (DAL +0.65%) and Uber (UBER +0.22%). Delta previously invested $60 million in Joby, with the potential for a total investment of as much as $200 million as milestones are met, and a seat on Joby's board. The partnership aims to offer "home-to-airport" transportation services, initially in New York City and Los Angeles.
Delta is working with Joby to integrate their services, allowing customers to book and pay for flights through the Delta app. Delta is also collaborating with Uber to allow SkyMiles members to earn miles on eligible rides and deliveries. Toyota (TM -1.15%) has also invested significantly in Joby, and has a long-term agreement to supply key components for the production of Joby's aircraft. Virgin Atlantic is one of the newer companies that will have an air taxi service partnership with Joby Aviation once its air taxis are operational.
Joby Aviation is collaborating with the U.S. government to develop and demonstrate eVTOL aircraft technology, including training pilots and delivering aircraft for logistics missions and research. The company has delivered its second aircraft to Edwards Air Force Base, Calif., and has five aircraft in its flight test fleet.
2. Archer Aviation
NYSE: ACHR
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3. EHang Holdings
NASDAQ: EH
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Headquartered in Guangzhou, China, EHang Holdings (EH -0.22%) is a leading urban air mobility technology platform company specializing in autonomous aerial vehicles (AAVs) for passenger transportation, logistics, smart city management, and aerial media solutions. EHang is at the forefront of developing and commercializing AAVs for various applications within urban environments. The company develops and markets AAVs, including eVTOL aircraft and related command-and-control systems.
EHang is working to make safe, autonomous, and eco-friendly air mobility accessible to everyone through their AAVs. The company is also exploring the use of AAVs for delivering goods and packages as well as for tasks like aerial photography, surveillance, and emergency response.
EHang's EH216-S is a pilotless eVTOL aircraft was the first passenger air taxi to receive certification worldwide and is fully autonomous, meaning it does not require a pilot within the aircraft. EHang has completed debut commercial flight demonstrations in cities like Guangzhou and Hefei, and has conducted passenger flights in Thailand as it works to set up commercial flight operations there.
The company also completed the Middle East's first passenger-carrying flight on its autonomous eVTOL aircraft when it transported members of a local partner on a demonstration flight at the Abu Dhabi Emirates Falcons Aviation Club. EHang's EH216-S has not received FAA approval for commercial operations in the United States, and is broadly focusing its commercialization efforts in the Chinese market. However, in January 2020, EHang conducted its first-ever trial flight of the EHang 216 in America with approval from the FAA.
4. Vertical Aerospace
NYSE: EVTL
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5. Boeing
NYSE: BA
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Boeing (BA +0.79%) is known for its commercial and military aircraft manufacturing, space exploration, and defense systems. As a leading manufacturer of commercial jetliners, producing iconic aircraft like the 737, 767, 777, and 787 families, Boeing-built commercial jetliners account for almost half of the world's fleet. Boeing also offers a comprehensive family of freighters, carrying about 90% of the world's cargo on its planes.
The company continues to develop new aircraft, including the 737 MAX and 777X and is exploring new technologies like electric and sustainable aviation fuels. Boeing designs and manufactures a wide range of military aircraft, including bombers and other defense systems. Boeing plays a significant role in space exploration, including developing spacecraft, satellites, and launch systems. The company develops and produces various defense systems, including weapons, drones, electronic warfare systems, and intelligence systems.
Boeing is also involved in the development of electric vertical takeoff and landing aircraft through its subsidiary Wisk Aero. Wisk is focused on creating a fully autonomous eVTOL that can operate without a pilot onboard, with human oversight from the ground.
Wisk is working toward FAA certification for air taxi operations, and the investment from Boeing will contribute to this process, but certification is probably still years away. Boeing's primary business areas remain commercial airliners and defense/space programs, so investors who want exposure to an eVTOL company that isn’t a pure play might take a second look at this top stock.
Should I invest in eVTOL?
Whether you should invest in eVTOL stocks will depend on your personal preferences, risk tolerance level, and long-term goals for your portfolio. eVTOL stocks are generally volatile due to the nascent nature of the industry and the high-risk, high-reward potential of these companies.
Here are some points to consider:
- eVTOL technology is still in its early stages, and companies are still developing and testing their aircraft.
- The regulatory landscape for eVTOLs is still evolving, and companies face challenges in obtaining necessary certifications and approvals.
- The eVTOL market is projected to grow rapidly in the coming years, but there's no guarantee that any particular company will be successful.
- Shares of eVTOL stocks are prone to experience significant stock price swings, both positive and negative, and the sector is generally volatile nature.
For investors who want to bet on the future of this fast-growing, emerging market, scooping up shares of one or more eVTOL stocks could have a place in a well-diversified portfolio. If you don't have a healthy tolerance for risk, though, you might want to look elsewhere.
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How to invest in eVTOL stocks
If you want to invest in eVTOL stocks, you can buy shares of any publicly-traded company through your chosen brokerage account. Here's what you need to know.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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