Soaring Into the Future: Is Archer Aviation a Smart Investment in 2025?

By Eugene McCombs - 5/24/25

As the race to transform urban transportation intensifies, Archer Aviation (NYSE: ACHR) is emerging as a frontrunner in the electric vertical takeoff and landing (eVTOL) market. With a bold vision to replace gridlocked commutes with quiet, all-electric air taxis, Archer aims to bring the concept of urban air mobility into everyday life. But is this futuristic company a sound investment in 2025?

The Archer Vision

Founded in 2018, Archer Aviation is developing Midnight, a piloted eVTOL aircraft engineered for short-distance flights of up to 100 miles. Designed with four-passenger capacity, a 150 mph top speed, and rapid turnaround between trips, Midnight is built for high-frequency, urban routes—think airport transfers and city center hops.

Archer is aiming to begin commercial operations in major U.S. cities such as Los Angeles and Miami in late 2025, subject to regulatory clearance. The company envisions a future where catching a flight across town becomes as routine as hailing a ride share.

Financial Snapshot

In the first quarter of 2025, Archer reported a loss of $0.17 per share, a better-than-expected result given its pre-revenue status. Impressively, the company holds over $1 billion in cash, a cushion that provides significant runway as it ramps up R&D and certification efforts.

Revenue is expected to begin trickling in by the end of this year, with analyst projections estimating around $37 million in 2025 and soaring to $600 million by 2027. Archer's management has set a goal of reaching cash flow breakeven by 2028, positioning the company on a path to long-term sustainability.

Strategic Partnerships Fuel Growth

One of Archer’s biggest advantages is its roster of strategic partners:

• United Airlines has pre-ordered 200 aircraft, with the intent of using eVTOLs for airport shuttle routes. This not only provides validation of the technology but also a real-world use case to generate early revenue.

• Stellantis, the global automaker, has committed up to $150 million in equity support and will serve as Archer’s contract manufacturing partner, leveraging its large-scale production capabilities.

• Archer also recently secured a $300 million defense contract, opening the door to government and military applications—a potentially lucrative secondary market.

Market Opportunity

The global eVTOL market is projected to grow at a compound annual growth rate (CAGR) of 20%–25% over the next decade. Factors like urban congestion, environmental sustainability, and innovations in battery technology are accelerating the shift toward airborne mobility.

Archer is positioned at the heart of this revolution, with a first-mover advantage and clear operational roadmap. If the company executes well, it could be among a small group of players that dominate the next generation of urban transportation.

Risks to Watch

Despite its promise, investing in Archer is not without risks:

• Regulatory Uncertainty: FAA certification is a major hurdle. Delays or failure to meet stringent requirements could derail launch timelines.

• No Revenue Yet: As of mid-2025, the company remains pre-revenue. All projections hinge on successful commercialization.

• Competition: Rival firms like Joby Aviation, Lilium, and Wisk Aero are also racing to market, and not all players will survive in this crowded space.

• Valuation Concerns: Archer’s market cap currently hovers around $4 billion, which some analysts argue is steep considering its early-stage status and lack of revenue.

Analyst Sentiment

Analyst price targets for ACHR vary, with estimates ranging from $9.00 to $13.50—a moderate upside from current levels. Long-term bulls believe the stock could hit $17 by the end of 2025 and exceed $20 in 2026 if key milestones are met.

Final Verdict: Is Archer a Buy?

Archer Aviation is a classic high-risk, high-reward play. It boasts solid financial backing, a credible business model, and big-name partnerships that lend it legitimacy. However, the path to profitability is steep, and much depends on regulatory success and market adoption.

For investors with a long-term horizon and a strong appetite for innovation, Archer could be a compelling addition to a speculative growth portfolio. For more conservative investors, it may be wise to wait until the company achieves key operational milestones.

Bottom line: Archer is building the future of flight—but like any great journey, it won’t be without turbulence. Proceed with vision—and caution.