In August 2020, a company named SkyDrive made “the first public demonstration of a flying car in Japan”—an electric vehicle with vertical takeoff and landing capabilities. The pilot of the one-seater flew at about 10 feet off the ground for about four minutes.
With support from the Japanese government, SkyDrive's CEO expects to commercialize a two-seat version by 2023. Morgan Stanley researchers project that “urban aircraft” will be common by 2040 and could create a $1.5 trillion market.
Currently, safety is the biggest issue with flying cars. Vehicles need to be designed to carry significant weight while remaining quiet enough to fly at low altitudes. Flying vehicles are unlikely to replace cars anytime soon, as they’ll be significantly less energy efficient and therefore much more expensive.