Archer Aviation aims to disrupt transportation market with eVTOL air taxis, but stock is risky

From Yahoo Finance: 2025-06-22 06:05:00

Archer Aviation is on the brink of approval for its electric air taxi service, with high costs likely leading to expensive ticket prices. The company’s ambitious goals make it exciting, but the stock is currently considered risky to purchase.

Archer Aviation aims to alleviate traffic congestion by offering electric vertical takeoff and landing (eVTOL) taxi networks in major cities worldwide. The company has gained FAA approvals for its Midnight model aircraft and established partnerships to implement eVTOL concepts globally.

Despite raising substantial funds, Archer Aviation reported negative free cash flow. Its business model hinges on FAA approval to start selling Midnight aircraft and operate air taxi networks, potentially charging $100 per passenger ticket.

While Archer Aviation’s electric air taxis could reduce city traffic, challenges remain. The company’s stock is overvalued, with uncertainties about profitability and demand for high-ticket eVTOL routes. Investors should exercise caution before adding Archer Aviation to their portfolios.

Archer Aviation’s market cap is $6.5 billion without generating revenue. Projected sales of 100 eVTOL units annually may yield slim profits, making the stock’s valuation questionable. The company’s business model and financial outlook raise concerns about its long-term sustainability.

Archer Aviation faces obstacles in solving traffic congestion with eVTOLs, as the scale required for significant impact is unlikely in the near future. Questions about demand for pricey air taxi routes and the company’s valuation overshadow its potential disruption in transportation markets.



Read more at Yahoo Finance: Will Archer Aviation Disrupt the Transportation Market?