Following a rough trading session on Tuesday, during which it lost roughly 9% of its shares’ value, Archer Aviation (ACHR) pushed for another milestone in the Middle East. On Wednesday, the company confirmed it completed the first flight of its Midnight electric vertical take-off and landing (eVTOL) aircraft at Al Bateen Executive Airport in Abu Dhabi. The market reacted positively to the news, with ACHR stock rising 1% in yesterday’s trading.
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Test Before Execution
The flight is another step towards Archer’s commercial plans in the United Arab Emirates. Conducted with backing from the Smart and Autonomous Systems Council, the test was observed by key UAE aviation and transport leaders, including officials from the General Civil Aviation Authority and the Abu Dhabi Investment Office.
The test supports Archer’s Launch Edition partnership with Abu Dhabi Aviation. That program aims to introduce a fleet of Midnight aircraft as air taxis in the capital. Abu Dhabi is set to become Archer’s first international market, with operations expected to begin later this year.
Following this, Archer will expand its test program in the region to gather more operational data for its aircraft. These efforts directly support its Launch Edition program with Abu Dhabi Aviation, which is set to introduce a fleet of Midnight aircraft as air taxis in the capital.
A $24 Billion Market
This push comes as the urban air mobility (UAM) market in Abu Dhabi and Dubai is estimated to be worth around $23.8 billion, with expectations for 21% annual growth through 2035. Archer’s regional focus aligns with this outlook, aiming to capture early share in a fast-growing sector.
Other recent milestones include regulatory design approval for the UAE’s first hybrid heliport at Abu Dhabi Cruise Terminal and vertiport infrastructure plans with Falcon Aviation to link Abu Dhabi and Dubai.
By targeting Abu Dhabi as a launchpad, Archer is positioning itself in a region that is investing heavily in next-generation transport. Success here could fast-track its global certification plans and give it a competitive edge in international markets.
Is Archer Aviation Stock a Good Buy?
Archer Aviation scores a Moderate Buy rating based on 6 analysts. The average ACHR stock price target is $11.75, implying a 17.74% upside.
