Archer Aviation is advancing its global strategy through joint ventures and supplier agreements to establish its electric vertical takeoff and landing (eVTOL) technology in key international markets. The company is the primary eVTOL partner for the UAE’s planned air taxi network in Abu Dhabi, targeting a Q4 2025 launch. It has also forged agreements in Japan with Sumitomo and, more recently, in Indonesia to facilitate early commercial use pending U.S. regulatory approval.
Recent test flights in Abu Dhabi mark a critical milestone, providing real-world performance data from operating in peak summer heat. This information will directly support certification efforts in both the UAE and the United States. By establishing a global presence, Archer aims to generate initial revenue abroad and refine its operations while awaiting final clearance from U.S. regulators.
The total addressable market for Urban Air Mobility (UAM) is projected to be substantial. One industry forecast estimates the UAM/eVTOL market will reach approximately $23 billion by 2030, representing a 31% compound annual growth rate. Initial applications will target high-density cities with significant traffic congestion, such as airport shuttles in New York, Los Angeles, London, and Tokyo, eventually expanding to intercity routes.
Archer’s $6 billion order book, which includes provisional orders and options from partners like United Airlines (200 aircraft), the UAE (100), and Japan (100), signals strong market demand. However, converting these orders into revenue depends on meeting certification and production timelines.
In the race to commercialize eVTOL services, Archer faces well-funded rivals. Its closest U.S. competitor, Joby Aviation, backed by Toyota and Delta Air Lines, has a similar 2025 launch target. Joby has already secured FAA Part 135 operating authority, delivered its first aircraft to the UAE, and begun piloted flights for market readiness. Other competitors include Eve Air Mobility, a spin-off of Embraer targeting a 2026 service launch, and European entrants Lilium and Vertical Aerospace. China’s EHang is pursuing an autonomous two-seater drone model and has generated minor revenue from pilot programs.
Archer differentiates itself with a pragmatic certification strategy, sourcing key, pre-certified components from established aerospace suppliers like Garmin (avionics), Honeywell (flight controls), and Safran (electric motors). This approach streamlines regulatory approvals by focusing on the novel integration of proven technology. The company has achieved key milestones, including its first full transition to wing-borne flight and recent piloted tests of its Midnight aircraft. These tests confirmed the aircraft handles as predicted by simulators, building confidence with regulators.
Operationally, Midnight is being tested for both vertical and conventional runway takeoffs and landings (CTOL), a unique versatility that can enhance safety and conserve battery life. Archer’s credibility is further bolstered by strategic partners. A $10 million deposit from United Airlines provides a ready launch customer, while automaker Stellantis is a major investor and manufacturing partner, helping Archer scale production toward its goal of 650 units per year by 2030. The company is also leveraging Palantir’s AI software for operational optimization and has teamed with Anduril Industries on a defense variant.
As a pre-revenue company, Archer’s finances are centered on its cash burn and funding. In Q1 2025, it reported a net loss of $93.4 million, an improvement from $116.5 million in Q1 2024. The cash burn from operations and investments was about $105 million. However, its balance sheet was transformed by a recent $850 million capital raise, boosting its liquidity to approximately $2 billion. This provides a financial cushion through at least 2026, though it has come at the cost of significant share dilution.
This funding is critical as Archer transitions from prototyping to manufacturing. The company plans to begin low-volume production in the second half of 2025 at its new 400,000-square-foot facility in Georgia, aiming to produce up to 10 Midnight aircraft in 2025.
Archer’s valuation rests on future expectations. Its market capitalization of just under $6.6 billion roughly equals its $6 billion order book. This is a rich valuation for a pre-revenue firm but suggests investor confidence that a large portion of its orders will convert. By comparison, Joby Aviation has a market value of about $9.5 billion, while Eve Holding is valued around $2.1 billion.
If Archer scales to 650 aircraft per year by 2030, with each unit generating $2 to $3 million in annual revenue, it could achieve $1.5 to $2 billion in revenue by that year. While speculative, this potential upside is what investors are pricing in today. Near-term analyst expectations are for $20-50 million in revenue in 2025, rising to $180 million in 2026.
The investment remains high-risk and high-reward, with success hinging on flawless execution over the next 18 months. Any delays or shortfalls could negatively impact the stock. Recent U.S. policy, including an eVTOL pilot program to accelerate approvals, provides a favorable tailwind. Ultimately, once aircraft are certified and delivered, the focus will shift to operational metrics like unit cost, fleet utilization, and profit margins, which will determine the long-term scalability of the business.
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