Eyes on the Skies: Three eVTOL Stocks to Watch

The electric vertical takeoff and landing (eVTOL) industry is accelerating, driven by technological advancements, strategic mergers and expanding infrastructure. 

Globally, the eVTOL market is projected to grow significantly. Mordor Intelligence estimates it will hit $4.36bn by 2030, representing a 29.65% CAGR. Other analysts put the figure as high as $37bn by 2033. As we will see, however, a large degree of uncertainty means the more conservative number may be more realistic. North America currently leads in market share, while Asia-Pacific is the fastest-growing region. 

Infrastructure development is keeping pace. For instance, the eVTOL charging facilities market is set to grow from $293.3m in 2025 to $4.43bn by 2035, at a CAGR of 31.2%. 

Despite making rapid progress, the industry still faces challenges, including high operational costs and the need for regulatory approvals. Companies are focusing on certification processes and strategic partnerships to navigate these hurdles.

The industry has seen several notable developments this week. 

EHang [EH] unveiled the VT35, a pilotless eVTOL aircraft in Hefei, China, designed for medium- to long-distance routes of up to 200 km. 

Elsewhere, Archer Aviation [ACHR] said it won a bid to acquire Lilium’s 300‑patent portfolio for €18m, boosting its total to over 1,000 assets. The patents cover high‑voltage systems, battery management, flight controls, electric engines and ducted‑fan tech, potentially advancing light‑sport aircraft and regional air mobility.

Lastly, Canada’s New Horizon Aircraft [HOVR] announced it will equip its Cavorite X7 hybrid eVTOL with Pratt & Whitney Canada’s PT6A engine. 

Let’s look at those three companies in turn. Considered together, they give a sense of where the sector is at right now.

ACHR Stock: Countdown to Midnight

Founded in 2018, Archer is headquartered in San Jose, California. The firm’s flagship aircraft, the Midnight, is a four-passenger, piloted eVTOL designed for short urban routes, with a range of up to 100 miles and speeds up to 150 mph. 

The company has secured significant partnerships, including a $1.5bn order from United Airlines [UAL] and collaborations with Stellantis [STLA] and Southwest Airlines [LUV]. The Stellantis partnership will involve the construction of a manufacturing facility in Covington, GA, where the carmaker will leverage its expertise to scale production of the Midnight eVTOL to 650 units per year by 2030.

Earlier this year, Archer received FAA certifications for commercial air taxi services and pilot training programs. 

It is also expanding internationally, with test flights conducted in Abu Dhabi and plans for infrastructure development in the UAE. 

ACHR stock has soared in the last 12 months. It is currently up over 320% over the period. 

Archer Aviation is an early mover in eVTOLs with a distinctive approach: it plans not only to manufacture aircraft, but also to operate a global air taxi service. This could broaden revenue streams and allow customization of its Midnight eVTOL for operational efficiency, potentially giving it an edge over future competitors.

Operationally, however, results have been weak. Revenue is minimal, while R&D costs for the Midnight program remain high. Q2 net losses more than doubled to $206m, a trend likely to continue. Early commercial payments are expected in late 2025, but costs will probably exceed revenue until production scales.

With $1.72bn in cash, Archer can sustain operations for now, though future equity raises may be needed. Management has a history of dilution, having raised $850m in June, which provides funds but can reduce existing shareholder stakes.

EH Stock: Autonomous Early Mover

EHang is a Chinese company specializing in autonomous aerial vehicles for urban air mobility. Its market cap is $1.39bn, relative to Archer’s $6.57bn.

Founded in 2014 and headquartered in Guangzhou, EHang develops and manufactures eVTOL aircraft, including the EH216-S and VT35 models. 

The EH216-S, a two-seat pilotless eVTOL, has been certified for commercial operations in China and is priced at approximately $410,000. 

Meanwhile, the two-seat VT35 features a tandem-wing design with eight lift propellers for vertical take-off and a pusher propeller for cruise. Weighing up to 950kg with an 8m wingspan, it can operate efficiently from urban vertiports, parks and rooftops. It is priced at RMB6.5m.

EHang’s aircraft are utilized for passenger transport, logistics, emergency response and smart city applications. The company has expanded its operations internationally, with deployments in countries such as Spain, Norway and Saudi Arabia. 

EH stock is up 7.37% over the last 12 months. 

EH stock represents a high-growth play in the emerging autonomous eVTOL sector, targeting urban air mobility and logistics. 

Revenue potential stems from both aircraft sales and recurring services, including operations, maintenance and software platforms for autonomous flight. With early mover advantage in pilotless eVTOLs and a growing international footprint, EHang could capture meaningful market share as urban air mobility scales.

Financially, like Archer, the company is still investing heavily in R&D and international expansion, resulting in minimal revenue and ongoing losses.

It did deliver 68 units in Q2 and saw 44% year-over-year revenue growth. Gross profit came in at RMB92m, with a gross margin of 62.6%. As analyst Julia Ostian noted, writing for Seeking Alpha, “if they can preserve this margin, it will be spectacular”.

Institutional interest and Nasdaq listing enhance liquidity, positioning EHang as a speculative growth stock for investors willing to tolerate near-term volatility for potential long-term upside.

HOVR Stock: Growth on the Horizon?

Canadian aerospace company New Horizon is the smallest of the three firms, with a market cap of just $109.01m.

It is developing the Cavorite X7, a hybrid-electric eVTOL aircraft designed for regional and defense applications. Unlike many eVTOL designs focusing solely on electric propulsion, New Horizon employs a hybrid system. The integration of the Pratt & Whitney Canada PT6A engine enables mid-flight battery recharging and offers operational benefits such as engine-generated warm air for de-icing and cabin heating.

The Cavorite X7 accommodates seven passengers, exceeding the typical five-seat capacity of many competitors. It features a patented fan-in-wing design, allowing for vertical takeoff and landing, and transitioning to conventional flight with a maximum speed of 450km/h and a range of up to 800km. It has a payload capacity of 1,500lbs during vertical operations. 

Its standout feature is its range, well above the sub-300 km range common in most eVTOLs, while its cruise speed is significantly faster than rivals. These characteristics position the X7 in a different segment of the air mobility market: rather than serving as an urban air taxi, it is better classified as a light regional aircraft or small business aircraft.

New Horizon Aircraft is targeting markets including emergency services, defense and commercial operators, with plans to certify and produce the Cavorite X7 before 2030. 

HOVR stock is up by 1,107% over the last 12 months.

New Horizon faces challenges including high development costs, unproven demand, and a net loss of CA$10.9m in the latest quarter. The company’s current cash position may only sustain operations through mid-2027, raising concerns about funding and potential dilution. Despite industry interest, converting technological progress into sales remains a significant hurdle.

Investors should weigh New Horizon’s innovative approach and market potential against the financial and operational risks inherent in early-stage aerospace ventures.

Source: Yahoo Finance

Conclusion

Archer, EHang and Horizon each offer unique exposure to the growing eVTOL sector, with differing technology, market focus and risk profiles. Analyst consensus suggests significant upside potential for all three, but investors must weigh innovation and early-mover advantages against high development costs and operational uncertainties.