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.
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
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2. Archer Aviation
NYSE: ACHR
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3. EHang Holdings
NASDAQ: EH
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4. Vertical Aerospace
5. Boeing
NYSE: BA
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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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