Flying car stocks are gaining attention for their growth potential. Archer Aviation (NYSE:ACHR) stands out among the pack, aiming for commercialization by 2025. Certification progress suggests the potential for a significant stock surge, with global expansion plans already in motion. ACHR stock has partnerships in the UAE and India for eVTOL aircraft launches in 2026.
Archer remains predominantly pre-revenue, reporting a Q3 net loss of $51 million. Indeed, that’s a significant improvement from Q2 2023’s $184 million and Q3 2022’s $91 million losses. With $461 million in reserves, Archer’s financial trajectory aligns with its plans, signaling potential profitability if timelines are met. While challenges exist in a competitive industry, Archer’s strategic moves make it a noteworthy player in the flying car stocks landscape.
Here are two enticing reasons why investors should set their hands and eyes on Archer Aviation.
Visionaries for Urban Air Mobility
Archer Aviation is turning the dream of flying taxis into reality, aiming for tangible progress and the launch of its four-passenger eVTOL aircraft, the Midnight, by 2025. Regulatory approval is expected in 2025, with plans for flights in the UAE starting in 2026.
Archer Aviation’s CCO, Nikhil Goel, unveiled plans for inaugural routes in the UAE, connecting Dubai and Abu Dhabi airports to key destinations. With demand surpassing initial capacity, premium pricing is anticipated to decrease as the fleet expands. Archer envisions deploying hundreds of aircraft in the UAE, aiming to make flying taxis a widespread mode of transportation.
Simultaneously, Archer eyes the expansive market potential in India. Test flights for the Midnight are underway in California, showcasing its safety features and design incorporating a dozen propellers and a gliding wing for emergencies.
The Midnight, Archer’s eVTOL aircraft, recharges in 6-7 minutes and covers 160 km at 240 km/h. User-friendly, even a 12-year-old can learn in 20 mins. Notably, the company’s ride-share model targets $4-$5/mile, reducing over time and leveraging existing helicopter routes, emphasizing safety, cost-effectiveness, and eco-friendliness. Nolen highlights zero-emission and low-noise features for smart city mobility.
Progressive Growth in a Short Time
In October, Archer Aviation successfully conducted the inaugural flight of its Midnight eVTOL aircraft, marking a pivotal milestone in the testing phase. The uncrewed and tethered flight signifies progress toward future evaluations.
After four years of flight testing, Archer Aviation achieved a significant milestone with the first flight of its Midnight aircraft. The upcoming phases aim for full wing-borne flight, targeting FAA certification in 2024. CEO Adam Goldstein emphasized the successful progression toward commercial services.
The next 18 months will focus on advancing the flight test program for Archer Aviation’s Midnight eVTOL. Set for a 2025 market launch, the piloted, four-passenger aircraft is optimized for urban trips up to 50 miles at speeds up to 150 mph, with quick-charging capabilities.
ACHR is a Must-Own Stock
ACHR stock plans to launch air taxi services in Chicago and a direct route from Newark to JFK Airport. The company has strong public and private sector ties with United Airlines, purchasing 100 vehicles and a partnership with Stellantis for manufacturing facilities. Archer received a million-dollar payment from an airport in Q3, part of a potential $142 million contract.
As a pre-revenue stock, Archer Aviation is certainly a more speculative bet long-term investors may want to consider in a small proportion to their overall portfolios. However, for those with a long-term investing time horizon seeking exposure to this space, I think it’s one of the best options in the sector.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
