Is Archer Aviation Currently the Wisest Investment Option Available?
Archer Aviation Poised for Growth in the eVTOL Market
Archer Aviation, a developer of electric vertical take-off and landing (eVTOL) aircraft, is making strides towards commercialization of its Midnight eVTOL aircraft. With a strong capital base and strategic partnerships, the company is aiming to achieve its ambitious production goals.
Archer's manufacturing partnership with Stellantis could help it reach these goals. The company expects to deliver 10 aircraft in 2025, 48 in 2026, 252 in 2027, and 650 in 2028. The Midnight eVTOL aircraft, designed for easier landing in crowded urban areas, has a maximum speed of 150 miles per hour and can travel up to 100 miles on a single charge, carrying a single pilot and four passengers.
The eVTOL industry is expected to grow significantly in the coming years. Market research firm MarketsandMarkets estimates the industry will have a compound annual growth rate (CAGR) of 35.3% from 2024 to 2030 and 27.6% from 2031 to 2035. Analysts expect Archer's revenue to surge to $103.4 million in 2026 and $450.8 million in 2027.
Archer has secured a substantial order book exceeding $6 billion, reflecting significant market demand and confidence from customers. The company has also secured partnerships with major industry players such as United Airlines, Boeing, and software partner Palantir. Defense contracts, including a $142 million U.S. Air Force deal, diversify revenue streams and reduce dependency on early commercial market adoption.
However, the eVTOL market is still nascent with challenges including complex FAA certification processes, evolving infrastructure requirements, and uncertain demand for urban air mobility. Early commercial revenue is expected to be limited initially, with anticipated payments in low tens of millions of dollars over the next 18-24 months from the UAE Launch Edition program. Archer reported a $206 million net loss in Q2 2025 but is on the cusp of revenue generation.
Despite these challenges, Archer is well-positioned for long-term growth. If the company can grow its top line at a CAGR of 30% from 2027 to 2035, its annual revenue could hit $3.7 billion by 2035. If Archer achieves explosive growth, trades at a reasonable 10 times sales by 2035, and does not acquire Joby Aviation, its market cap could rise nearly sixfold to $37 billion.
In addition to its focus on production and certification, Archer has also announced a new AI partnership with Palantir to optimize its manufacturing and aviation systems. The company will also be the official air taxi services provider for the 2028 Summer Olympics in Los Angeles.
In conclusion, Archer Aviation's potential for growth and profitability appears promising, driven by its strong capital base, strategic partnerships, and progress towards commercialization of its Midnight eVTOL aircraft. However, profitability depends on successfully navigating regulatory certification, scaling production, and market adoption, which are expected to unfold gradually over the next several years. Investors are advised to focus on long-term prospects, monitoring FAA certification progress and 2026 earnings as catalysts for value creation.
[1] Archer Aviation Press Release, [Date] [2] Archer Aviation Investor Presentation, [Date] [3] Archer Aviation Q2 2025 Earnings Report, [Date] [4] Archer Aviation Annual Report 2024, [Date]
- Archer Aviation's strategic partnerships with Stellantis and Palantir, among others, demonstrate a commitment to technology-driven advancements in the realm of finance and investing, positioning the company to capitalize on the expected growth in the eVTOL market.
- As Archer Aviation aims to deliver hundreds of Midnight eVTOL aircraft in the coming years, the company's revenue is projected to surge, potentially reaching $3.7 billion by 2035, making it an attractive proposition for investors focused on long-term prospects in the dynamic intersection of finance, technology, and the eVTOL industry.
