Archer Air (NYSE:ACHR) Its future electric vertical takeoff and landing (eVTOL) air taxi business has huge potential as it positions itself for adoption in the U.S.
On December 2, the company announced an agreement with aerospace technology manufacturer Karem Aircraft to obtain “military-grade” technology “proven” by the U.S. Army, which will improve aircraft efficiency. A week later, the company completed the first phase of its acquisition of Hawthorne Airport, located near downtown Los Angeles and expected to be the center of operations for the 2028 Los Angeles Olympic Games.
Archer Aviation expects to be fully operational by the time global events begin, but whether that timeline can be met remains an open question.
Archer’s success depends largely on obtaining certification from the U.S. Federal Aviation Administration (FAA) for commercial flight, a process that could take years. Regulatory hurdles aside, the company remains unprofitable and continues to post hefty losses.
After reducing quarterly net losses to $93.4 million in the first quarter of 2025, losses more than doubled to $206 million in the next quarter. In the latest financial report, Archer’s third-quarter net loss expanded by 12% year-on-year. After two consecutive years of gains, the stock is expected to close down about 20% in 2025.
Joby AirAnother eVTOL taxi company also poses a significant challenge to Archer’s success. It is currently working towards FAA certification and has partnerships with: toyota. It also plans to integrate the helicopter services of its subsidiary Blade Air Mobility into UberA shared travel platform will be launched next year. That could help air taxi companies get full FAA approval ahead of Archer. Joby also plans to double manufacturing capacity to four aircraft per month by 2027, with its inventory soaring 65% by 2025.
Archer Aviation stock isn’t an ideal investment right now because the company hasn’t yet generated revenue, continues to lose money, still needs FAA certification, and faces stiff competition.
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Adé Hennis has no position in any of the stocks mentioned. The Motley Fool works for and recommends Uber Technologies. The Motley Fool has a disclosure policy.
Should you buy Archer Aviation when it’s under $10? Originally posted by The Motley Fool