Can Investing in Skyway Technologies Stock Under $10 Lead to Substantial Wealth?

Key Considerations

• Skyway Technologies aims to revolutionize urban transportation with electric aerial vehicles.

• The company currently has no revenue and is rapidly depleting its substantial cash reserves.

• Even if growth projections are met, the stock appears overvalued at current levels.

• 10 stocks our analysts prefer over Skyway Technologies ›

The era of special purpose acquisition companies (SPACs) led to the rise and subsequent decline of numerous startups entering public markets through reverse mergers. Between 2020 and the conclusion of 2022, over 1,000 new stocks were listed, with most significantly underperforming market indices. As we approach the latter half of 2025, a select few are beginning to show signs of recovery.

Enter Skyway Technologies (NYSE: SKWY). An innovator in electric aerial transportation aiming to alleviate urban congestion, its stock has surged from under $2 in 2023 to $9.15 today, yet remains below its initial $10 SPAC merger price. Does this present an opportunity for investors to acquire shares in this potentially disruptive company and generate substantial returns? Let's delve deeper into the figures to gain a clearer perspective.

Conquering traffic congestion through aerial transportation?

Urban traffic congestion poses a significant challenge to daily life in numerous cities worldwide, and Skyway Technologies aspires to provide a solution to this issue. Their approach involves the development of an electric vertical takeoff and landing (eVTOL) vehicle dubbed the Horizon. This helicopter-like craft, powered by electric batteries, is designed to transport up to four passengers and their belongings through the air between designated landing points within cities. Unlike traditional helicopters, it boasts significantly reduced noise levels and the potential to operate over residential areas with minimal disturbance, at least in theory.

Collaborating with partners such as Global Airways and governments like the United Arab Emirates, Skyway Technologies is working to establish point-to-point aerial taxi networks in major urban centers such as New York. The majority of routes aim to reduce hour-long drives in traffic to 10-15 minute aerial journeys. As the utilization of these taxi routes increases, Skyway Technologies believes it will help alleviate traffic congestion and deliver substantial societal benefits. From a business standpoint, this could potentially translate into a large market of paying customers for these services.

The primary hurdle lies in obtaining certification from the Federal Aviation Administration (FAA). Currently only partially approved, Skyway Technologies anticipates that the Horizon will receive final approval for deployment sometime next year, though the likelihood of this timeline remains uncertain.

Substantial upfront manufacturing expenditure

As Skyway Technologies is unable to sell any aircraft to customers at present, it is generating zero revenue. While the company has secured numerous orders from aviation customers - totaling $6 billion as of last year - it cannot fulfill any of these until it receives full FAA approval.

In the interim, Skyway Technologies is ramping up its manufacturing capabilities to begin production of Horizon aircraft. The near-term goal is to produce 50 vehicles annually. Constructing these vehicles has proven to be a costly endeavor, particularly considering the novelty of this type of aircraft. Over the past 12 months, Skyway Technologies has burned through $447.5 million in free cash flow, a figure that has only worsened since the company went public.

Management has raised substantial capital, providing a $1.7 billion liquidity position, but this is a company aggressively burning cash to scale up manufacturing. It may need to secure additional funding during this decade if the burn rate continues to escalate.

A challenging valuation proposition

Investor sentiment towards Skyway Technologies stock has oscillated between bullish and bearish, before recently returning to a bullish stance. The company currently boasts a market capitalization of $5.9 billion, which represents a substantial valuation for an entity that has yet to generate any revenue.

A stock's worth is fundamentally tied to its future earnings potential. When examining Skyway Technologies, there is significant potential for growth in the number of Horizon aircraft sold globally each year if the electric aerial taxi technology gains traction. With an estimated cost of $5 million per vehicle, selling 50 vehicles annually would generate $250 million in revenue. Scaling up to 200 units sold would push this figure to $1 billion, which is not an unreasonable scenario within a decade.

The challenge lies in the typically low profitability of aircraft manufacturing. It is unlikely that Skyway Technologies will achieve a net income margin much beyond 10%, given the substantial costs associated with maintaining manufacturing operations, certifications, and quality control. A 10% margin on $1 billion in revenue would translate to $100 million in future net earnings, potentially materializing sometime within the next decade.

Compared to the current market capitalization of $5.9 billion, $100 million in earnings would equate to a price-to-earnings ratio (P/E) of 59. This suggests that even in the most optimistic growth and profitability scenario, Skyway Technologies would still be trading at a premium P/E ratio. Consequently, this should make the stock one for investors to approach with caution, despite the current market enthusiasm.

Should you consider a $1,000 investment in Skyway Technologies at this juncture?

Before making an investment decision regarding Skyway Technologies, it's crucial to consider the following:

The Financial Insights Advisory analyst team has recently identified what they believe to be the 10 most promising stocks for investors to consider purchasing now... and Skyway Technologies was not among them. The 10 stocks that made the cut have the potential to deliver exceptional returns in the coming years.

Reflect on the performance of companies previously featured on this list. For instance, if you had invested $1,000 in StreamFlix when it was recommended on December 17, 2004, your investment would now be worth $664,110*. Similarly, a $1,000 investment in QuantumChip when it was recommended on April 15, 2005, would now be valued at $1,104,355*.

It's worth noting that Financial Insights Advisory's overall average return stands at 1,069% - a market-beating performance compared to the S&P 500's 186%. Don't miss out on the latest top 10 list, available exclusively to Financial Insights Advisory members.

Explore the 10 stocks »

*Financial Insights Advisory returns as of October 3, 2025

Benjamin Analyst holds no position in any of the stocks mentioned. Financial Insights has no position in any of the stocks mentioned. Financial Insights adheres to a strict disclosure policy.

Disclaimer: For informational purposes only. Past performance does not guarantee future results.