Archer Aviation (NYSE:ACHR) has skyrocketed 226% this year. While a correction is possible, it’s a top flying car stock to monitor. 

Indeed, this is a speculative high-growth area Archer operates in, and one which a number of top investors are betting heavily on (more on that later). 

Thus, a 20% drop might be an entry opportunity for ACHR stock worth considering. This is a company that’s secured FAA approvals for early 2024 flight tests, a potential stock catalyst. There are other longer-term catalysts I’m watching as well.

With that said, let’s dive into the bullish thesis underpinning this stock, which has still seen impressive momentum this year.

Cathy Wood is Hopping on the ACHR Craze

Cathie Wood of Ark Invest, known for identifying disruptive growth stocks early, recently added nearly 250,000 shares of Archer Aviation to her flagship Ark Innovation ETF (NYSEARCA:ARKK). 

Ark Invest now holds nearly 10% of Archer Aviation, demonstrating Wood’s strong belief in the company.

This purchase is part of Cathie Wood’s recent pattern of increasing her holdings in the eVTOL air taxi company. 

ACHR stock has performed exceptionally well year-to-date, rising from under $2 per share at the beginning of the year to over $6 per share at the time of this report.

Today, ACHR stock is trading relatively flat, showing a minor decrease of less than 1% in afternoon trading as it consolidates above the $6 mark. Cathie Wood, who entered at a cost basis slightly below this level, along with other growth investors, sees further potential for upside.

ACHR’s Bright and Big Potential

Archer Aviation, known for its electric vertical takeoff and landing aircraft, secured a $142 million contract with the U.S. Air Force and over $1.1 billion in funding, including support from Boeing and Cathie Wood’s ARK Invest. The FAA granted approval for flight testing of their Midnight eVTOL model.

The company prioritizes efficiency for quicker commercialization. While the initial Midnight aircraft design may not suit mass production, the timeline aims for production by 2023, flight tests in 2024, and service entry by 2025.

With the FAA-efficient certification for Midnight, Archer can use certified technologies from supply chain partners. This approach prioritizes rapid commercialization, focusing on people, partnerships, and production for quicker business results.

Archer recruits top talent from diverse industries, including Airbus, Apple, Boeing, GM, Mazda, and Tesla. This strategy incorporates automotive design principles to meet higher production volume demands effectively.

What Now

Looking to enter the eVTOL era? Consider investing in Archer Aviation, a key player.

Crucially, Archer Aviation’s Midnight eVTOL now holds a Special Airworthiness Certificate from the FAA, green-lighting flight testing. Indeed, investing in early-stage startups like this one comes with inherent risks. Readers will want to perform their due diligence before investing in any of the companies mentioned above.

However, Archer Aviation is a top flying car stock to watch as it continues to make moves in the emerging air taxi industry as of this moment.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.