The age of urban air mobility is upon us, and Archer Aviation (ACHR) is at the forefront of the charge to become a leader in this space. The company has raised $850 million in fresh capital and is making steady progress toward FAA certification, positioning it for commercial launch in the near future.
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Enthusiasm for “flying cars” has helped drive the share price up by over 164% in the past year, though the stock has pulled back from its recent high, shedding ~15% in the past month. Still, I remain Bullish on the sector as a whole and Archer as its standout performer. For long-term investors who worry they have missed the pre-launch window, the pullback presents an entry opportunity.
ACHR Evolves Into a Market Leader
Archer Aviation develops electric aircraft designed for short urban flights. The company’s Midnight aircraft can carry one pilot and four passengers on trips of up to 100 miles at speeds of up to 150 mph. These electric vertical take-off and landing (eVTOL) aircraft represent a new generation of transportation.
The company plans to operate its own air taxi services in major cities, as well as sell aircraft directly to operators. This dual approach provides multiple paths to monetization as the urban air mobility market evolves.
Archer has secured partnerships across four continents. United Airlines (UAL) has taken a leading role as both an investor and commercial launch partner, while Stellantis (STLA) is providing manufacturing expertise and connections within the automotive industry. International partnerships in the UAE, Japan, and Indonesia set the stage for rapid global growth. Furthermore, the company has been selected as the Official Air Taxi Provider for the LA 2028 Olympic Games.
The global market is projected to exceed $20 billion by 2030 and remains largely untapped, as no company has yet begun commercial operations. Joby Aviation (JOBY) stands as Archer’s primary competitor in the race to reach market first with a certified, commercially viable product.
Recent Financial Results Serve as Proof of Concept
Archer remains in the research and development phase with no commercial revenue. The company reported a net loss of $206 million in Q2 2025, with earnings per share of -$0.36, which lagged analyst expectations.
Operating expenses of $176 million translate to a monthly cash burn rate of approximately $58.6 million, reflecting the costs associated with the intensive development and certification process. Management expects this rate of cash burn to continue, estimating an adjusted EBITDA loss of roughly $110 to $130 million for Q3 2025.
However, the company’s balance sheet received a significant boost through the $850 million capital raise completed in mid-2025. This funding extends Archer’s operational runway well beyond 12 months, providing financial flexibility during the critical certification phase.
Management has highlighted steady progress toward FAA approval and commercial launch targets for late 2025/early 2026. The company has also begun to receive milestone payments from partnerships and early defense contracts, providing some cash flow to offset development expenses.
Valuation and Momentum on ACHR’s Side
Traditional valuation metrics, such as price-to-earnings ratios, offer little insight to investors for pre-revenue companies. Analyst projections suggest that Archer could generate $50-100 million in revenue during 2025, scaling rapidly to over $1 billion by 2028 if commercialization succeeds; however, this is a high-risk, high-reward scenario.
As shown by TipRanks data, Archer is trading at a discount to Joby Aviation on a price-to-book basis (3.41x vs. 13.4x) and in terms of enterprise value metrics. This valuation gap reflects investor perceptions about competitive positioning (with Joby potentially being further along in the certification process). However, the discount may create potential upside if Archer meets certification and revenue milestones.
Shares of both companies have pulled back recently, demonstrating negative price momentum. This trend may continue, but positive news from either company could shift investor sentiment overnight.
Is ACHR a Good Stock to Buy?
Analysts following the company maintain an optimistic view on Archer’s prospects. For example, Canaccord Genuity’s Austin Moeller has recently reiterated a Buy rating with a price target of $13, noting that the company has successfully ramped up production, bolstered by its recent capital raise, which positions the company well for continued expansion. It has made significant strides toward commercialization and is one of the few companies in the final stages of FAA certification.
Institutional interest has grown steadily, driven by strategic investor participation from United Airlines and Stellantis, and now represents roughly 30% of stock ownership. Aerospace and mobility-focused funds have increased their allocations to the eVTOL sector, while managers focused on investing in innovation, like Cathie Wood’s ARK Investment Management, have established sizable positions.
Currently, ACHR stock is rated a Strong Buy overall, based on 6 Buy and 1 Hold recommendations from Wall Street analysts. Their average 12-month price target on ACHR stock is $13.14, representing a potential upside of almost 47% from current levels.
Urban Air Mobility Nears Inflection Point
The urban air mobility market is at a pivotal stage, with certification and successful commercial launches likely to unlock significant value. Archer Aviation provides an attractive opportunity to gain exposure to this emerging sector, backed by fresh capital, steady progress toward FAA certification, and a robust ecosystem of partners.
The recent pullback in share price creates a potential buy-the-dip opportunity, though investors should brace for volatility. Market sentiment will remain sensitive to FAA certification milestones, earnings updates, cash burn dynamics, partnership developments, and industry shifts—including competitor moves and regulatory changes.