Investing in flying car stocks has transitioned from science fiction to reality, with several companies making significant advancements in this space. Early investors in this technology could reap substantial returns, as new possibilities continue to open up in this fast-moving space.
Archer Aviation (NYSE:ACHR) is one flying stock you should have in your portfolio. The company has several notable catalysts, including a substantial payment from the U.S. Air Force, part of a $142 million contract, highlighting Archer’s innovative capabilities.
A groundbreaking deal with the Abu Dhabi Investment Office aims to introduce an all-electric air taxi service in the UAE by 2026, following their planned 2025 U.S. launch.
These factors position Archer Aviation as a prominent player in the eVTOL aircraft industry. Let’s talk more about what makes them stand out and why you should invest in ACHR stock.
Midnights Prototype Takes First Flight
US-based eVTOL aircraft manufacturer Archer Aviation achieved a milestone with the first un-crewed, tethered test flight of the Midnight aircraft, following four years of flight testing. The program will progress to full wing-borne flight in the coming months, aiming for FAA certification in 2024.
CEO Adam Goldstein confirmed ACHR is on track to offer customer services in two years, emphasizing the progress made in Archer’s path to commercialization.
Archer will focus on advancing their flight test program and electric air taxi operations to launch Midnight in 2025, a piloted, four-passenger eVTOL optimized for 20-50 mile urban trips, capable of flying up to 100 miles at speeds of up to 150mph.
The aircraft offers quick charging, enabling back-to-back 20-mile trips with just a 12-minute charge. This reflects the rapid eVTOL market growth, with over 500 designs published since 2011, according to GlobalData.
Launch of Air Taxis in Abu Dhabi in 2026
Archer Aviation aimed to initiate air taxi services in Abu Dhabi by 2026, marking its first international venture beyond the United States. The plan included extending the air taxi service to the entire United Arab Emirates under an agreement with the Abu Dhabi Investment Office (ADIO).
This initiative follows Archer’s $142 million contract with the U.S. Air Force in August for up to six “Midnight” aircraft. In May, Archer completed the assembly of Midnight, a four-passenger eVTOL with a 100-mile range. Archer aims to replace 60-90 minute car commutes with 10-20 minute eVTOL urban flights, emphasizing Midnight’s quick turnaround between flights.
Last August, they gained certification from the Federal Aviation Administration for test eVTOL flights in the U.S. Once fully certified by the FAA, the UAE’s General Civil Aviation Authority, led by Saif Mohammed Al Suwaidi, will approve Archer’s air taxis for use in the country.
Under the ADIO deal, Archer set up its first global HQ and manufacturing site in Abu Dhabi’s SAVI cluster, located in Masdar City. SAVI promotes smart and autonomous vehicle tech, supported by Archer’s backer, Mubadala.
ACHR Stock Looks Relatively Attractive
Given the rising competition in the eVTOL market, Archer’s deals with the U.S. Air Force and ADIO provide a competitive advantage, increasing value for shareholders of ACHR stock. This strengthens Archer’s financial position by generating income from military contracts before launching its air taxi services.
That said, investors should also consider other factors before buying ACHR stock. The eVTOL market presents an opportunity for growth, with the potential to disrupt traditional transportation methods and transform urban mobility.
For those with a long-term investing time horizon, this is a space I think is worth watching. Within this sector, Archer is one stock to at least keep on the radar screen for the time being.
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.
