Key Points
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Flying car stocks are taking off – and fast. All thanks to President Trump’s newest executive order.
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Part of the order will also allow manufacturers to test flying cars and remove regulatory barriers that have kept most grounded.
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Flying car stocks are taking off – and fast.
All thanks to President Trump’s executive orders intended to make flying cars a reality.
Most recently, Trump directed the Federal Aviation Administration to expedite approval for routine commercial drone operations that retailers such as Amazon have said are crucial to expanding airborne deliveries.
Part of the order will also allow manufacturers to test flying cars and remove regulatory barriers that have kept most grounded. “The administration says the program will allow companies that are already conducting this type of testing, such as Joby’s air taxi service, to partner with state, local and tribal governments,” added USA Today.
Here’s What the Executive Order Says
“Emerging technologies such as electric Vertical Takeoff and Landing (eVTOL) aircraft promise to modernize methods for cargo delivery, passenger transport, and other advanced air mobility capabilities,” said the executive order, as noted by The White House.
“The Secretary of Transportation, acting through the Administrator of the FAA, and in coordination with the Director of OSTP, shall establish the eVTOL Integration Pilot Program (eIPP) as an extension of the BEYOND program to accelerate the deployment of safe and lawful eVTOL operations in the United States.”
“Within 90 days of the date of this order, the Secretary of Transportation, acting through the Administrator of the FAA, shall issue a public request for proposals to State, local, tribal, and territorial governments. Proposals must be submitted within 90 days of the request and include a private sector partner with demonstrated experience in eVTOL aircraft development, manufacturing, and operations.”
Within 180 days of the request, the Secretary of Transportation, acting through the Administrator of the FAA, shall select at least five pilot projects that plan to begin eVTOL operations within 90 days after the date on which any agreement for a pilot project is established.”
That’s having a substantial impact on flying car stocks such as Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR), which were up 13% and 10%, respectively on Monday.
Joby Aviation
Aside from Trump’s executive order, optimism continues to build around the idea of personal air mobility and short-distance air taxis.
Two, analysts at HC Wainwright just raised its JOBY price target by $4 a share to $13 with a buy rating. The firm cited Trump’s executive order, which will accelerate development.
Third, the company just inked a deal with Abdul Latif Jameel to explore opportunities to establish a distribution agreement in Saudi Arabia for Joby’s electric aircraft.
Plus, Toyota just invested $250 million in JOBY to support certification and commercial production of its electric air taxis.
As noted in a Joby Aviation press release, “The funding marks a significant milestone in strengthening the long-term collaboration between the two companies and supports their shared vision for the future of air mobility.”
“The investment is aimed at supporting certification and commercial production of Joby’s electric air taxi. This underscores the mutual commitment to deepening integration and delivering next-generation travel to global markets. This investment also puts the two companies a step closer toward a strategic manufacturing alliance.”
Archer Aviation
The high-flying company wants to deploy Midnight in the UAE later this year with the support of the Abu Dhabi government, sovereign wealth funds, and a regulatory partnership with the UAE General Civil Aviation Authority.
It also plans a second launch with Ethiopian Airlines that will give Archer a foothold in East Africa’s rapidly growing aviation market.
Analysts at Cantor Fitzgerald just reiterated an overweight rating on the stock with a price target of $13.
We also have to consider that the global eVTOL market could be worth $170 billion by 2034, according to Precedence Statistics. All thanks to potential demand in the military for the quick deployment of soldiers and equipment, medical evacuations, and search and rescue operations, and for urban congestion, which could help reduce ground traffic.
Even better, funds are jumping into the stock, too.
Paul Tudor Jones’ Tudor Investment just increased its stake in ACHR by 82.7% by adding 771,160 shares. BlackRock increased its stake by 59% by adding 13.6 million shares.
There’s Always an ETF
Outside of JOBY and ACHR, exchange-traded funds such as the First Trust NASDAQ Transportation ETF (FTXR) could benefit.
After finding support at around $25, the FTXR ETF rallied to a recent high of $31.37.
And it could head a lot higher – especially with the flying car boom.
With an expense ratio of 0.60%, the ETF seeks to replicate the holdings and weightings of the Nasdaq US Smart Transportation Index so as to generate performance results 95% correlated to that of the Nasdaq US Smart Transportation Index, as noted by FTPortfolios.com.
Some of its top holdings include Ford Motor, Tesla, General Motors, United Airlines, United Parcel Service, United Rentals and CSX Corp. to name a few.
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