AI, advanced battery technology, and lightweight materials sciences are shaking up the auto industry, but their applications don’t end there. These same innovations are now taking flight, literally, transforming the aviation field and giving rise to a promising new niche – affordable short-hop aerial commuting, better known as flying taxis.
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That vision is being brought to life through electrically powered vertical take-off and landing aircraft, or eVTOLs. Still in the early stages of development, eVTOLs represent the next wave of aviation: clean and quiet propulsion, automated flight systems, and emission-free, low-altitude travel in crowded urban environments. Traditional short-hop aircraft – small planes and helicopters – are noisy, costly to operate, and heavily dependent on large-scale infrastructure. eVTOL technology could upend all of that.
The potential market already exists; helicopter shuttle services between airports in cities like New York and Washington, DC have long catered to travelers willing to pay for speed. What’s changing is the economics and accessibility. New eVTOL makers such as Joby and Archer aim to slash costs while making aircraft far quieter and easier to integrate into urban settings. According to Fortune Business Insights, the global eVTOL market could reach $23.21 billion by 2028, growing at a CAGR of 23% over seven years.
When a sector is projected to expand that rapidly, investors take notice. That’s why aviation expert Savanthi Syth of Raymond James recently evaluated Joby Aviation (NYSE:JOBY) and Archer Aviation (NYSE:ACHR), two clear leaders in the eVTOL rac, and named one as her top flying taxi stock pick. Let’s take a closer look.
Joby Aviation
We’ll start with a look at Joby Aviation, one of the earliest trailblazers in the eVTOL space. Back in 2020, it became the first company to earn the US Air Force’s airworthiness approval, a milestone that underscored its technological edge. Joby’s flagship design is a multi-rotor, multi-battery electric aircraft built to carry four passengers, their luggage, and a pilot. Its prototype has already racked up over 30,000 flight hours, and the company is now deep into a multi-year testing campaign aimed at securing FAA certification for commercial service.
The company’s full-scale aircraft features multiple independent tilt rotors and batteries, and was designed with a specific set of specifications in mind: to hop from the NYC’s downtown heliport, on Manhattan Island, out to JFK airport in just seven minutes. The aircraft can carry its passengers and cargo at speeds up to 200 miles per hour, and can operate from existing aviation facilities. Joby’s eVTOL plane started production at the Marina facility in 2023, and production models began their flight testing that year.
Joby had entered into strategic partnerships with several established firms, for development of battery and engine tech, as well as streamlining the ride sharing experience for air taxi commuters. Partner companies include Toyota, Delta Airlines, and Uber – all known experts in their fields. In addition, on August 4 Joby announced that it had entered into an agreement to acquire Blade Air Mobility, an urban air commuter company, using helicopters, that flew more than 50,000 passengers last year around a network of 12 urban air terminals. The transaction, which will be conducted in stock or cash, will cost Joby $125 million – but will give the eVTOL company access to Blade’s existing terminal and lounge infrastructure.
Also this month, Joby announced that it is assembling its first conforming aircraft, in preparation for the FAA’s Type Inspection Authorization flights. The TIA is a vital step toward FAA certification for a commercial air taxi service.
On the same day that Joby announced that it is prepping for the TIA testing, it also released its financial statements for 2Q25. In that statement, Joby reported further progress on its FAA certification, completion of a flight test program in Dubai, a collaboration with the defense contractor L3Harris, and expansion of its aircraft manufacturing facilities.
For analyst Savanthi Syth, laying out the Raymond James view, Joby’s chief advantages stem from the company’s early lead in the field, while its chief disadvantage comes from its relatively high valuation.
“Joby plans to build five for-certification aircraft, with flight testing of the first with Joby/FAA pilots expected in 2025/early-2026. On the whole, Joby’s progress is encouraging, albeit we believe this is at-risk building as Joby is not out ‘out of policy’ (i.e., FAA approval on compliance/test plans without placeholders). Notably, Joby has yet to commit to final aircraft specs as management wants to be further along the certification process… We reiterate our Market Perform rating on JOBY based on relative qualitative and quantitative measures, with Joby having the greatest flight experience among the group but also the most richly valued by a significant margin, albeit some premium warranted at this juncture,” Syth opined.
To this end, Syth rates JOBY as Market Perform (i.e., Neutral), without suggesting a price target. (To watch Syth’s track record, click here)
Overall, Joby gets a Hold rating from the Street’s consensus, based on 8 reviews that break down to 1 Buy, 6 Holds, and 1 Sell. The shares are priced at $18.06 and the $12.50 average price target suggests a downside for the coming year of ~31%. (See JOBY stock forecast)
Archer Aviation
The second stock we’re looking at, Archer Aviation, is a relative latecomer to the eVTOL field. The company was founded in 2018, and like Joby above, it is working to develop a multi-rotor, short-hop air taxi for the urban commuter market. The company has already flown prototype models of its ‘Midnight’ aircraft, and like Joby, it is progressing through the FAA’s certification process with the aim of putting a commercial air taxi into service.
The Midnight uses twelve tilt-rotor electric motors, arranged in six pairs, for propulsion. These are all mounted on the wing, and the forward rotors can tilt to switch between normal flight or take-off and landing operations. The use of multiple rotors allows for redundancy as a safety feature – a feature that is reinforced by independent battery packs in the power system. The Midnight’s all-electric propulsion and small-rotor design make the aircraft inherently quiet, and more suited for urban environments than helicopters. The Midnight is capable of speeds up to 150 miles per hour, and is designed to fly in minutes along routes that would take ground transport an hour or longer.
Getting into specifics, the Midnight was designed to carry up to four passengers with their luggage, and is capable of running a route from downtown Manhattan to Newark airport in just 9 minutes. It’s a trip that would take an hour by train or bus – but Archer is working to give commuters a chance to hop over the traffic. The Midnight aircraft currently has more than four years of flight testing behind it.
In addition to its commercial operations, aimed at the urban air taxi market, Archer is also involved with the defense industry. The global defense market is valued at upwards of $2.4 trillion – and it is rapidly evolving. Archer is working on military applications for hybrid-propulsion VTOL aircraft, capable of troop or cargo transport and featuring low thermal and acoustic signatures, making them stealthier than helicopters. Archer has been involved with the Defense Department since 2021.
Checking in again with Savanthi Syth, we find the Raymond James analyst upbeat on Archer, citing the company’s progress in flight testing and its strong prospects for success as it approaches commercialization.
“From a certification standpoint, Archer and Joby are making similar progress in our opinion, albeit Joby boasts more flight experience. On the commercial front Archer may generate cash sooner vis-à-vis Launch Edition. Net-net, Archer and Joby remain the industry leaders, with FAA progress a notable gating factor. At this stage, Archer is better capitalized and trading at significant discount to Joby. We reiterate our Outperform rating on ACHR due to the balanced approach to commercialization (through a focused and capital light path towards certification, scaling, and commercialization), progress to date, and compelling valuation (the pre-commercial revenue stage keeps us from a more constructive rating),” Syth noted.
That Outperform call comes with a $13 price target, a level that, if hit, would hand investors a 27% gain over the next 12 months.
All in all, Archer’s 8 recent analyst reviews split 6 to 2 in favor of Buys over Holds, for a Strong Buy consensus rating. The shares are trading for $10.07 and their $12.06 average price target indicates room for an ~18% share appreciation by this time next year. (See ACHR stock forecast)
With the facts laid out, it’s clear the Raymond James analyst sees Archer Aviation as the way to fly for investors interested in flying taxis.
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.