Terrafugia is developing a flying car called the Transition, as well as a larger eVTOL aircraft called TF-2. The Transition will reportedly be priced at around $400,000. The company has published very few details about the performance and specifications for either product. 

In mid-2018, Terrafugia abandoned an earlier plan to develop the TF-2 as a vectored-thrust tiltrotor design. Current plans called for a "lift and cruise" design, which features four vertical propellers and a pusher prop at the rear of the fuselage. The aircraft is intended to operate in conjunction with a ground vehicle from which pods carrying cargo or up to four passengers would be loaded and offloaded.

In January 2020, Terrafugia's Chinese majority shareholder Zhejiang Geely, which is a major automotive group, made an internal announcement about the specifications for a new, smaller, model called TF-2A and this was leaked via social media. The company declined to comment on the information released, but a spokesman did confirm that Terrafugia's China division is leading the development of an eVTOL product and has flown a sub-scale model of the TF-2A.

In January 2021, Terrafugia announced that it has received a light sport certificate of airworthiness for the Transition from the FAA, clearing it for initial flight operations. The company is now focusing on getting U.S. approval for the vehicle to be driven on public roads.

However, in February 2021, Zhejiang Geely confirmed that it is transferring the Transition program to China, where it will seek type certification through the Civil Aviation Administration of China. The company cut up to 100 jobs at its U.S. site but will retain a smaller team to pursue "aviation-related opportunities."