Archer Aviation Inc. (ACHR) is a California-based company developing electric vertical takeoff and landing (eVTOL) aircraft designed for short, urban air travel. Its goal is to launch an air taxi service using its flagship vehicle, Midnight. The eVTOL market is still emerging, but analysts project a compound annual growth rate (CAGR) of 20% to 25% through 2030, driven by rising demand for clean, efficient urban transportation and government investment in sustainable mobility. Other estimations are far less conservative, ranging from 35.6% to as much as 54.9% through 2034.
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Archer has already made notable progress. It has successfully completed flight tests, begun manufacturing at scale, and built a factory in Georgia to produce up to 10 aircraft in 2025. The company is also advancing hybrid propulsion technology through a defense partnership with Anduril, which could unlock military applications without requiring FAA certification.
Where Archer Stands Today
Archer is currently in the pre-revenue stage, meaning it hasn’t started selling or delivering aircraft yet. It is, however, making real progress. The company has built a strong network of partners, including Stellantis (STLA), the carmaker behind brands like Jeep and Fiat, and United Airlines (UAL), which has placed orders for Archer’s aircraft. It also recently signed agreements with Abu Dhabi Aviation and Ethiopian Airlines, opening doors to international markets.
In terms of finances, Archer has a market value of about $3.8 billion. Even though it hasn’t made any revenue yet, the company has a solid cash reserve of $834.5 million and over $1 billion in liquidity. That cash cushion gives it time to continue developing and scaling its business without immediate pressure to raise more money.
So far, Archer’s stock has risen over 86% in the past year, but it has seen some pullback in recent weeks. It lost over 27% year-to-date, while the Aerospace sector rose 2.98%. The following key moment will be Archer’s earnings report on May 8, where analysts expect a loss of $0.27 per share, which represents a 39.9% worsening year-over-year.
Risks and Challenges
Despite the optimism, there are real risks. Archer continues to operate at a loss, and its cash burn is high. It spent over $450 million in 2024 alone on development and operations. The company also needs to secure full FAA certification, a critical step before it can begin commercial flights in the U.S. Delays in this process could impact growth.
Additionally, rising global tariffs and supply chain disruptions could increase costs or delay production and deliveries, especially with Archer expanding internationally.
So, is Archer Aviation stock a good investment for 2025? It depends on your investment style. For those who believe in the future of urban air mobility and are comfortable with risk, Archer offers a bold bet on innovation. For cautious investors seeking profits today, it may be best to wait. Archer’s story is still being written, but it’s one to watch closely in the year ahead.
Is ACHR a Good Stock to Buy?
According to Wall Street analysts, the answer is a resounding yes. Based on Seven ratings, Archer Aviation is a Strong Buy, with an average price target for ACHR stock of $12.83, implying an 81.99% upside potential.
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