Archer Aviation Gains Momentum Amid Challenges in eVTOL Market

San Jose, California — Archer Aviation is making strides in the electric air taxi industry as it prepares for a future that includes aerial travel. Despite not having commercial revenues yet, Archer is attracting attention with prominent partnerships and significant financial backing.

The company recently completed a funding round, increasing its cash reserves to over $1 billion. Major investors such as BlackRock and Stellantis are backing Archer, with Stellantis playing a key role in the manufacturing of Archer’s aircraft. The company has also secured a partnership to serve as the official air taxi provider for the 2028 Los Angeles Olympics, giving it a valuable marketing boost.

Archer’s stock price has shown positive trends, currently sitting above its 50-day and 200-day moving averages. Market indicators suggest a bullish sentiment among investors. The Federal Aviation Administration (FAA) has also made progress by finalizing standards for propulsion loss without requiring changes to Archer’s Midnight aircraft design, paving the way for further certification.

However, challenges remain. Archer reported zero revenue in its last financials, having burned through nearly $450 million last year. The company posted an adjusted EBITDA loss of $109 million in the first quarter of 2025. Flight testing for the Midnight aircraft has faced delays, and planned deliveries to Abu Dhabi Aviation have not commenced.

While Archer possesses strong cash reserves, the business heavily relies on external financing until it generates revenue. The eVTOL market is highly competitive, with companies like EHang, Eve Holding, and Vertical Aerospace vying for leadership.

Wall Street analysts have rated Archer as a Strong Buy, indicating optimism about its future with a projected upside of 16.05%. Archer Aviation’s path to profitability remains uncertain, but the company is positioning itself for potential growth in the coming years.