Archer Aviation Faces Challenges Ahead of Commercial Launch

San Jose, CA — Archer Aviation, an electric vertical take-off and landing (eVTOL) company, is making headlines as it nears commercial launch and regulatory hurdles. Most recently, Archer was named the official air taxi for the 2028 Los Angeles Summer Olympics.

Despite this milestone, the path ahead is filled with challenges. Archer must secure FAA Type Certification for its flagship Midnight aircraft before commencing operations in the U.S. This certification is crucial for the company’s commercial strategy.

Investor sentiment is mixed; however, some see potential in Archer. An investor known as First Principles Partners believes the timing is right to invest. “The type certification is in the final stages, which is an ideal position to speculate a strong upside trend,” he stated.

Archer has completed 402 test flights and plans to build about 10 Midnight aircraft by 2025. The Midnight, capable of a 100-mile range and speeds up to 150 mph, is currently in rigorous testing to meet FAA standards. The company is also exploring markets with less stringent regulations, partnering with Abu Dhabi to launch its first commercial air taxi service in 2025.

Support from major partners, including a $1 billion order from United Airlines for 200 aircraft, has bolstered Archer’s position. However, a recent short report from Culper Research alleges that the company has misled investors regarding its development milestones and commercialisation timelines.

The report claims internal communications suggest Archer’s aircraft is not yet ready for market. Despite the controversy, Archer’s stock has received strong ratings from analysts, with a majority giving it a “Strong Buy” based on positive forecasts. The average price target is $12.29, indicating potential for growth.

As Archer moves forward in the competitive eVTOL market, the company continues to innovate and build strategic alliances aimed at ensuring a successful launch. The industry is projected to see over 2,000 commercial eVTOLs operational by 2030, with a compound annual growth rate of 54.9% anticipated during this period.