Should You Invest $500 in Archer Aviation Right Now?

• Archer Aviation is a startup in the emerging field of electric vertical takeoff and landing (eVTOL) aircraft.

• The company may launch air taxi trials in major U.S. cities in 2026.

• Archer has no revenue yet, and FAA certification may take time.

• 10 stocks we like better than Archer Aviation ›

Archer Air (NYSE:ACHR) is a California-based startup trying to take the Wright brothers’ radical flying concept to another level: electric vertical takeoff and landing (eVTOL) aircraft that serve as air taxis.

Estimated by Morgan Stanley The electric vertical takeoff and landing market will be worth approximately $9 trillion by 2050, but the market is still in the early stages of growth. Such predictions make Archer Corp., which trades at about $9 a share, look like a potential millionaire maker. But is it really so? Is the $500 investment worth it?

Archer Aviation is on the cusp of commercializing its electric air taxi service. But the definition of “spike” depends on who you talk to.

From Archer’s perspective, the recent White House executive order mandating accelerated eVTOL deployment suggests it’s getting close to making money from air taxis. These include the White House’s eVTOL Integrated Pilot Program (eIPP), which could allow Archer to launch air taxi trials in major U.S. cities as early as 2026.

However, if you were looking at “Spike” from a bearish investor perspective, you might point out that the FAA’s safety standards are notoriously unforgiving, and new planes like the Archer Midnight won’t carry paying passengers until the FAA is absolutely sure they’re safe.

Next comes another unknown: Will people actually buy tickets? Of course, people will try it. But will there be enough demand for eVTOL services to create what Morgan Stanley estimates is a trillion-dollar market? Or will the service be too expensive for the average American to consider?

If Archer has the economies of scale to price tickets correctly, saving time by whizzing through the air rather than crawling through traffic could be attractive enough to make this mid-cap stock look cheap in retrospect. but this is a big if. Today, the unknowns outweigh the knowns, making Archer a highly speculative bet and not one I would recommend putting $500 into.

Before buying Archer Air shares, consider the following factors:

this Motley Fool Stock Advisor The analytics team has just identified what they believe is 10 Best Stocks For investors to buy now…and Archer Aviation isn’t one of them. The 10 stocks selected could generate huge returns in the coming years.