Archer or Joby: Billionaire Israel Englander Bets on One Top Flying Taxi Stock

Flying taxis – or as they are officially known, eVTOL (electric vertical take-off and landing) aircraft – might sound like something out of a science fiction movie, but they’re set to become a real part of future urban transportation.

Thanks to progress in electric propulsion, better batteries, and autonomous systems, the UAM (urban air mobility) market is primed for some rapid growth. According to Flyingcarsmarket, the segment is expected to grow from about $3.6 billion in 2023 to more than $29 billion by 2030 – a CAGR (compound annual growth rate) of roughly 34%. The boom is being driven by the demand for smarter ways to ease traffic in crowded cities and by heavy investment in the space.

And where there’s rapid growth and heavy investment, you can expect savvy investors to take notice. That’s certainly the case here, as billionaire Israel Englander has already begun positioning himself in this emerging industry. Englander is a bona fide investing legend, having launched Millennium Management in 1989 with $35 million. Today, it has grown into one of the world’s largest alternative investment firms, managing more than $78 billion in assets, employing over 6,300 people worldwide, and helping boost Englander’s net worth to $18.9 billion.

The billionaire’s portfolio includes stakes in Archer Aviation (NYSE:ACHR) and Joby Aviation (NYSE:JOBY), two companies that are leading the way in eVTOL development, each bringing its own distinct aircraft design to the table. However, recently Englander’s moves have shown that he has been leaning heavily into one of these names but paring back his holdings of the other.

So, we have opened up the TipRanks database to get the lowdown on both and to find out just what the Street’s analyst community makes of Englander’s choices. Let’s take a closer look.

Archer Aviation

First up, Archer Aviation, a company focused on designing and building eVTOL aircraft intended to serve urban air mobility (UAM) networks. Established in 2018 and headed by its founder and CEO Adam Goldstein, Archer is still in the pre-revenue stage but is working towards its goal of commercialization and there has been plenty happening on that front.

The company has ramped up the production of its four-passenger Midnight eVTOL aircraft, with six units currently in production – three of which are in final assembly across its California and Georgia manufacturing facilities. Backed by major partners including United Airlines, Stellantis, and the Abu Dhabi Investment Office, in June the company also secured $850 million in financing following a White House Executive Order that supports accelerated U.S. eVTOL rollout, strengthening Archer’s liquidity position to approximately $2 billion.

Earlier in the year, Archer introduced a “Launch Edition” commercialization program in the UAE via partnerships with Abu Dhabi Aviation and the Abu Dhabi Investment Office, culminating in the aircraft’s first Middle East test flight in July, performed under challenging environmental conditions like heat, humidity, and dust.

And possibly most eye-catching of all, Archer has been chosen as the Official Air Taxi Provider for the LA28 Olympic and Paralympic Games, working alongside federal and local efforts to fast-track certification and scale up operations ahead of the 2028 games.

With so much progress and headline-worthy news, it’s not surprising that ACHR stock surged by as much as 160% over the past year. That kind of rally may have prompted billionaire investor Israel Englander to take some profits off the table – during Q2, he offloaded 1,311,310 ACHR shares, trimming his stake by 79%.

That sort of move makes sense to J.P. Morgan analyst Bill Peterson, who believes a cautious stance is merited here.

“Archer’s 2Q results highlight ongoing certification timing uncertainties, although the team is focused on meeting FAA requirements and preparing for future commercial and defense opportunities,” Peterson said. “Archer did not report a sequential percentage increase in terms of FAA acceptance of compliance verification documents (15% completion), which may be disappointing to some investors, but reflects a lumpy process with a handful of policy items still outstanding that are not all Archer-specific. Based on our interaction with investors, we sense that investors would like to see Archer’s prop design be locked in and the team conduct many more hours of piloted flight tests, including in a VTOL configuration, to further de-risk the certification story, despite Archer discussing its view that CTOL piloted flight is a more pragmatic way to approach certification in the near-term.”

“From a stock perspective, we remain Neutral ACHR, as we think the chances of success are currently priced into the stock at current levels,” Peterson summed up.

That Neutral rating is backed by a $10 price target, implying shares will stay rangebound for the time being. (To watch Peterson’s track record, click here)

However, the broader Street is less hesitant. While one other analyst stays on the sidelines with Peterson, 6 others rate ACHR stock a Buy, resulting in a Strong Buy consensus rating. The average price target lands at $12.06, pointing to ~22% upside from current levels. (See ACHR stock forecast)

Joby Aviation

Next up is Joby Aviation, another prominent eVTOL name that has been turning heads. Founded by entrepreneur and CEO JoeBen Bevirt in 2009, Joby has emerged as one of the leaders in the push to bring flying taxis into everyday life, and is making steady progress toward becoming a working service.

This summer, the company completed the first-ever piloted airport-to-airport eVTOL flight in FAA-controlled airspace, flying about ten nautical miles between Marina and Monterey, California – signaling that commercial activities are getting closer. Joby is also making headway on FAA certification, with its aircraft now deep into Stage 4 review and pilot flight tests expected later this year. It already has important operating approvals, including a Part 135 certificate for air taxi services, putting it in a strong position to start operations as soon as the final approvals are in place. Production-wise, Joby is scaling up manufacturing at its California facility, while construction in Dayton, Ohio, aims to support mass production of hundreds of aircraft annually. 

Joby is also working to establish a global presence: it struck a deal to acquire Blade Air Mobility’s passenger business, which will give it access to prime terminals and customer networks in New York and Southern Europe, and it’s expanding through partnerships in Saudi Arabia and Japan. Beyond passenger services, Joby is branching into defense through a collaboration with L3Harris to build a hybrid VTOL aircraft for military use, with testing scheduled to start this fall. Lastly, on the financial side, the company is well-capitalized, bolstered by a $250 million investment from Toyota earlier this year and nearly $1 billion in cash reserves.

With all that going on, it’s no surprise Englander wants in. During Q2, he upped his JOBY stake by 39%, purchasing 630,329 shares. In total, he holds 2,246,904 shares, currently worth ~$37.36 million.

The company also has a fan in Needham analyst Chris Pierce, who sees plenty to like here.

“JOBY has been stacking up positive headlines at a dizzying pace, with piloted flight helping debunk the science project bear thesis across the eVTOL space, and repeated piloted flight and ramping aircraft production momentum communicating confidence into ultimate FAA certification,” Pierce said. “Questions remain, not limited to the timing of scaled aircraft production leading to either Urban Air Taxi vs OEM placements and early stage air taxi infrastructure buildout to support passenger flight, as well as gross margin clarity for either revenue line, but JOBY’s growing technical credibility is carrying the day as of now.”

Conveying his confidence, Pierce rates JOBY a Buy while his Street-high $22 price target factors in a 12-month gain of 37%. (To watch Pierce’s track record, click here)

That said, the rest of the Street takes a more cautious stance; with an additional 6 Holds and 1 Sell, the stock claims a Hold consensus rating. Moreover, considering the shares have surged by 212% over the past 12 months, according to the $12.50 average price target, the stock has now overshot by 22%. (See JOBY stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.