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
2. Archer Aviation
NYSE: ACHR
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Archer Aviation (ACHR +0.49%) is another major player developing eVTOL aircraft. It's hoping to transform urban air mobility with its Midnight aircraft, a piloted, four-passenger eVTOL aircraft designed for rapid back-to-back trips with minimal charging time between flights. Archer is in the final phase of the FAA's Phase-4 type certification process.
Archer is also exploring potential applications for its hybrid aircraft platform in the defense sector, working with partners like defense technology company Anduril on future vertical lift use cases. The company has formed partnerships with Ethiopian Airlines, Abu Dhabi Aviation, and Palantir Technologies (PLTR +2.46%) as well, to name several key partners.
Archer and Southwest Airlines (LUV +0.15%) have also established an agreement to develop operational concepts for air taxi networks, which could potentially offer Southwest customers an airport transport service. Archer also has a partnership with Stellantis (STLA +0.55%). Archer has started production of its Midnight aircraft and plans to build as many as 10 aircraft this year to support ongoing certification testing programs and deployments with its key partners.
3. EHang Holdings
4. Vertical Aerospace
NYSE: EVTL
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5. Boeing
NYSE: BA
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Boeing (BA +0.74%) 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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