11 Hot EV Stocks to Buy Now

4. Embraer S.A. (NYSE:ERJ)

Year-to-date Share Price Returns:  97.53%

Number of Hedge Fund Holders: 25

Embraer S.A. (NYSE:ERJ) is a prominent name in the global aerospace industry. It is engaged in the design, development, manufacturing, and sale of aircraft and systems across multiple regions, including North America, Latin America, the Asia Pacific, Europe, and its home country of Brazil. It ranks 4th on our list of hot EV stocks to buy now.

Founded in 1969, it has a remarkable history, having delivered over 8,000 aircraft to date. The impressive output means that one of its planes takes off approximately every 10 seconds, collectively transporting more than 145 million passengers annually. As the leading manufacturer of commercial jets with up to 150 seats, the company plays an important role in the aviation sector and is also Brazil’s top exporter of high-value goods.

Embraer (NYSE:ERJ) is actively going after advancements in electric aviation, especially in the development of electric vertical takeoff and landing (eVTOL) aircraft. It is considered to be the next step in the future of urban air mobility, which is expected to address the growing need for innovative urban transportation solutions.

In 2023, the company announced plans to establish a new factory near São Paulo for the production of electric flying taxis, with the goal of having them operational by 2026.

The facility will be located in Taubaté, approximately 140 kilometers (87 miles) from São Paulo, the economic hub of Brazil. Pending final approvals from relevant authorities, the manufacturing plant will be constructed in a designated area within the company’s current site in the city, which will undergo expansion.

Through its subsidiary, Eve Air Mobility, the company focuses on creating eVTOL aircraft that include the vehicles themselves. It also provides supporting infrastructure and services necessary for their operation. Designed for short-distance travel in urban areas, these eVTOL aircraft are key to reducing congestion and improving transportation efficiency in cities.

In July, Eve Air Mobility achieved a significant advancement by unveiling the full-scale prototype of its “flying taxi.” The prototype represents an impressive step toward obtaining certification and entering service by 2026.

The aircraft is equipped with electric engines, although the initial version does not feature a cabin or pilot. The goal is to have a final model that can accommodate four passengers and a pilot.

Embraer’s (NYSE:ERJ) management has expressed that the readiness of this prototype for testing is a sign of progress toward the certification process, which began with an application to Brazil’s civil aviation authority in 2022.

Eve plans to have five conforming prototypes ready for testing in the next year and seeks to produce a pre-series eVTOL by 2026 as part of its certification strategy.