| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Archer Aviation Inc. (NYSE: ACHR) is a pioneering urban air mobility (UAM) company focused on designing, developing, and manufacturing electric vertical takeoff and landing (eVTOL) aircraft for passenger transport. Headquartered in Palo Alto, California, Archer aims to revolutionize urban transportation by offering a sustainable, efficient alternative to ground-based transit. The company, founded in 2018 and publicly listed via a SPAC merger, operates in the high-growth Aerospace & Defense sector, targeting the emerging eVTOL market. Archer’s flagship aircraft, the Midnight, is designed for short-haul urban commutes, positioning the company as a key player in the future of mobility. With strong backing from industry leaders like Stellantis and United Airlines, Archer is strategically positioned to capitalize on regulatory advancements and increasing demand for eco-friendly air travel solutions.
Archer Aviation presents a high-risk, high-reward investment opportunity in the nascent eVTOL industry. The company has yet to generate revenue, reporting a net loss of $536.8M in its latest fiscal period, reflecting significant R&D and operational costs typical of pre-revenue aerospace firms. However, its $834.5M cash position provides a runway for continued development. Archer’s partnerships with major airlines and automakers (e.g., United Airlines’ $1B conditional order) lend credibility, but commercialization hinges on FAA certification and scaling production—key risks. The stock’s high beta (3.13) indicates volatility, appealing to growth investors but unsuitable for risk-averse portfolios. Long-term potential depends on regulatory timelines and execution against well-capitalized competitors.
Archer Aviation competes in the rapidly evolving eVTOL market, where differentiation hinges on technology, certification progress, and strategic alliances. Its Midnight aircraft targets urban air mobility with a 100-mile range and rapid charging, competing directly with Joby Aviation’s S4 and Lilium’s Jet. Archer’s partnership with Stellantis for manufacturing scalability is a key advantage, potentially reducing production costs. However, Joby’s first-mover status in FAA certification (Phase 3 testing as of 2024) and vertical integration pose challenges. Archer’s reliance on third-party suppliers for critical components (e.g., batteries) may delay timelines versus integrated rivals. The company’s focus on the U.S. market, backed by United Airlines’ operational network, contrasts with Lilium’s European-centric strategy. While Archer’s capital efficiency (lower capex vs. peers) is notable, its late-mover status in certification could cede market share. Success hinges on executing its 2025 commercialization target ahead of competitors.