Archer Aviation (NYSE: ACHR) is one of the leading companies in the electric vertical take-off and landing aircraft (eVTOL) market, but investors haven’t been all that excited with it of late.
Its value has been dropping as rival Joby Aviation has been making headlines with its progress and highly publicized test flights, and its valuation is more than double Archer’s
Neither company has obtained approval for their air taxis just yet, and both contain sizable long-term risks. But with a lower valuation, and Archer’s stock down more than 60% from its 52-week high of $14.62, could now be a good time to add it to your portfolio? The company expects operations to commence this year Although Joby’s been stealing the spotlight recently, Archer says it has been making significant progress toward obtaining certification from the FAA for its Midnight aircraft, noting that “in April, Archer reached a key milestone on its path to FAA Type Certification of Midnight, becoming the first eVTOL company to close Phase 3 of the FAA’s 4-phase Type Certification process.” Certification and obtaining approval are what investors are focused on, as that will dictate how quickly Archer can begin generating revenue.
For now, this remains a cash-burning business with limited revenue to show for it, but if it’s able to commence operations, as it plans to do later this year, then all that could change. If Archer does obtain certification, the stock could instantly get back up to its recent highs. Risk is high, but so is the upside when it comes to Archer’s stock At a much lower valuation than Joby, Archer’s stock may be in a better position to surge higher if its Midnight aircraft obtains approval from regulators.