Archer Aviation (ACHR) is trading near $5.40 after a sharp drop of about 28% so far this year. The stock also sits below its 50-day moving average of about $6.37, indicating a weak near-term trend. At the same time, recent updates from the company show steady progress across key areas of its business.
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Forget margin or options. Here's how the pros trade ACHRThis gap between price and progress is now shaping the main debate for investors.
In the meantime, ACHR shares rose 1.50% on Friday, closing at $5.40.
Progress Builds While the Stock Lags
First, Archer reached a key step with regulators. The company said the Federal Aviation Administration (FAA) has accepted 100% of its Means of Compliance for its Midnight aircraft. This clears a major hurdle and allows Archer to move toward the next phase of testing.
In its latest earnings call, the company said, “FAA confirmed final acceptance of 100% of Midnight’s Means of Compliance,” which it views as a major step toward full certification. In addition, Archer has advanced its flight test work, with long-range test flights and early piloted vertical takeoff tests now underway.
At the same time, Archer is moving closer to real-world use. The firm is working with Hopscotch Air to test how its air taxi service could operate in daily use. This includes route planning, passenger flow, and service design. This type of work helps shift the story from pure tech toward actual service rollout.
The company also ended the year with about $2 billion in liquidity. Management called this its “highest watermark,” which gives Archer time to continue development without near-term funding pressure.
Market Focus Stays on Risk and Cash Burn
However, even with this progress, the stock has moved lower. This suggests the market is focused on a different set of risks.
For one, Archer is still a pre-revenue company. It expects an adjusted EBITDA loss of about $160 million to $180 million in the near term. That level of spending raises concern about how long current cash can last, even with a strong balance sheet today.
In addition, the path to full launch is still long. The company is targeting early deployment in 2026, with broader scale tied to later years. This long timeline can weigh on investor interest, especially in a market that favors near-term cash flow.
At the same time, the wider eVTOL sector has seen a reset in valuation. Many early-stage names have moved lower as rates and risk views have changed. As a result, Archer’s stock may reflect this broader shift, not just company-specific news.
Valuation Gap Comes Into Focus
This is where the gap between valuation models and market price becomes clear. Some third-party models suggest the stock could be undervalued by as much as 80% based on long-term cash flow views.
However, those models depend on several key steps. Archer must complete certification, scale production, and convert its order book into real revenue. The market, on the other hand, is placing more weight on near-term risks such as cash burn and possible future dilution. As a result, the stock appears to reflect caution rather than a view on the core technology.
What Investors May Watch Next
Looking ahead, investors may focus on a few key items. These include further progress with the FAA, updates on the White House eVTOL pilot program, and early signs of commercial rollout in the U.S. and abroad.
Meanwhile, updates on spending and cash use will remain important. While Archer has a strong liquidity base today, the pace of investment will shape how long that runway lasts.
In short, Archer Aviation is showing steady progress in its plan, yet the stock reflects concern about time, cost, and execution. This gap between progress and price is likely to remain a key theme for investors in the near term.
Is ACHR Stock a Good Buy?
While Wall Street still holds a Strong Buy view, with an average ACHR stock price target of $13.20, the path to realizing the potential upside of over 140% depends more on clear progress than on long-term vision alone.
